Canada is a country with a fairly strict taxation system. The income of ordinary Canadian companies is taxed worldwide. Accordingly, they do not have any signs related to tax or offshore structures, and in any case they are prestigious. However, the laws of Canada offer the possibility of registering and using Canadian businesses with a zero tax rate. They are known as LP companies.
LP is a Limited Liability Partnership managed by at least 2 partners: General Partner and others – Limited Partners. If a Canadian LP with non-resident members does not conduct business in Canada and does not receive income in Canada, then it is not taxed in Canada, in fact, it is equivalent to an offshore company
Canadian tax law does not treat LP as a separate subject of taxation. Founders (“Partners”) must pay taxes on the profits received by the LP company at their place of residence, in proportion to their shares in LP, if this is provided for by the legislation of that particular country.
Brief information about offshore company registration in Canada
Type of offshore company: Limited Partnership.
- Offshore company management: In Canada, LP partnerships require a minimum of 2 partners – individuals or legal entities from any jurisdiction. Information about partners is submitted to the Business Register of the province of Canada in which the partnership is established.
- Shareholders of the offshore partnership: Canadian LP partners have shareholder status.
- Secretary: There is no requirement for a company secretary to be appointed.
- Authorized capital of an offshore company: The minimum authorized capital in a Canadian LP is CAD 1,000. There is no legal requirement for full or partial payment of capital upon registration.
- Company name: Canadian LP company name must end with the words “Limited Partnership” (LP). Company names containing words such as “Bank”, “Insurance”, “Trust”, etc., are not allowed until the company has obtained the appropriate national license.
- Owner information: The ultimate beneficial ownership information must be disclosed to the registered agent and kept confidential by the agent.
- Financial reporting: Every Canadian LP must maintain appropriate records and prepare financial statements.
Canadian LP Corporate Taxation
Companies with non-resident partners that do not do business in Canada, do not receive any income from sources in Canada, and that are managed and controlled outside of Canada are exempt from federal and provincial taxes.
Canada Tax Treaties
Offshore LP companies are not considered residents for tax purposes in Canada and therefore are not eligible to use the treaties for the avoidance of double taxation between Canada and other countries. Registering a company in Canada is a respectable and prestigious choice. Jurisdiction is not included in the black lists of any countries and has no restrictions on cooperation with residents of any states.
We are ready to register a new company – Canadian LP in accordance with the wishes of the client.
The price will range from 1440 to 2100 USD depending on the province, including registration costs, the cost of a registered agent and office, a set of company documents, including a General Power of Attorney.
The cost of annual support services depends on the province of the partnership registration. Services will include an annual government fee, full payment to the registered agent / office), general power of attorney for the current year.
Registration takes 2-3 working days, then legalization of documents.
If you need to register an offshore company in Canada, then our specialists will help you to register a company in Canada quickly. Moreover, you can buy a ready-made company in Canada. Write to us in the CRM form and we will help you register an offshore company in Canada.
Eternity Law International specialists provide you with expert advice on the acquisition of an offshore company, a European company, obtaining a VAT number, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage of work.
We offer ready-made European and offshore companies. Renewal of documents for new owners takes 2 days.
If you have any questions or need advice on registering or buying a company, call us at the numbers listed on the website, or fill out and send us the form located at the bottom of the page.
