Introducing Canada. Why register Canadian Limited Partnership?

Reputable jurisdiction

When we say “reputable” or “white-listed” jurisdiction, what exactly do we mean?

  • No additional tax must be withdrawn when making payments from some onshore jurisdictions, which presume the notion of “black lists” (for example, Bulgaria, Latvia, Estonia, Lithuania, Italy and some others).
  • OECD member. Canada is one of the first sates who entered Economic Co-Operation and Development in 1960. As more and more banks restrict tax-havens and accept only OECD members, it will be easier to start the corporate bank account for a Canadian LP.
  • Canada has been a member of the World Trade Organisation (WTO) since 1995.
  • The World Bank placed Canada 7th for ‘ease of doing business’, in their Doing Business report which ranks 183 economies.
  • Canada has 88 double taxation agreements in force. 

Non-taxable partnerships

Partnership in Canada can be structured so it is not liable for Canadian taxation.
It is formed by two or more corporate (or private) persons entering into a partnership agreement, for the carrying business for profit. There are no restrictions on the jurisdiction of the partners.

No VAT hassle

Canada does have equivalent of VAT - Goods and Services Tax (GST). But the Canadian company would apply GST only if it renders services in Canada and only if such services are provided to another Canadian company.
Because the location is outside Europe, than EU VAT rules do not apply. All operations with a Canadian entity are considered import /export and are VAT free.

No Accounting Statements

For Canadian Limited Partnerships, which Partners reside or are incorporated outside Canada, there are no obligations to file Annual Financial Statements.

To summarise:

Canadian Limited Partnerships is a simple form of business registration in Canada, which creates a Canadian business entity and does not generate filing and tax obligations in Canada for partners, who are not residents of Canada.

 

Why register Canadian Limited Partnership?Why register Canadian Limited Partnership?

HOW DARWIN TAX CAN HELP?

  • Offer a ready-made Canadian LP for a quick start
  • Open bank account in EU or offshore bank without personal visit
  • Advise on the suitable business structure - free of charge

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