News: Registration of LP (Limited Partnership) in Ontario

Registering of LP in Ontario

LP company in the province is registered in accordance with the Limited Partnerships Act. LP is a partnership with limited liability. LP activities are regulated by the statute and documents that have been agreed with all parties (for example, Limited Partnership Agreement).

Registration of LP in Ontario is carried out with at least one general partner and one limited partner.

General partner has all the rights and authority in managing LP. His liability is not limited. A partner with limited powers does not participate in controlling a company's activities, and his liability is usually limited to the amount of contribution to an authorized capital.

Why the founders want to register LP in Ontario

1. A company will occupy worthy and respectable positions in the rating of business.
2. There is no requirement for the residence of a partner.
3. The founder can be both a general partner and a limited partner, acting as an individual LP.
4. There is no minimum and maximum rate for an authorized capital.
5. Income derived from activities outside the borders of Canadian territory will not be taxed.
6. Tax reporting is not provided.
7. In case of registration of LP business in Ontario, profits for corporations are not taxed.
8. Holding annual meetings is not required for LP.
9. Minimum and maximum amounts of contributions are not established in the province.
10. Partners can invest capital and property in LP.

Offshore company registration in Ontario is useful for:

1. Trading activities in the jurisdictions of Canada, the United States, the EU countries and others;
2. Software development services and IT support with counterparties from Canada, the United States and the European Union;
3. Online business (development of web pages, marketing, auctions, online stores, etc.).

Register LP in Ontario: Name Requirements

1. Each company should have a name with such a legal element as LP. Full form - Limited Partnership - is allowed.
2. Registration of LP in Ontario, which name contains a surname, or brand/corporate name, which is not a surname or a corporate name of one of the general partners, is impossible.
3. A name containing the words to which the restriction applies according to the laws of the province is not subject to registration.

It is allowed to use of a name in both languages — English and French.

Offshore in Ontario of LP type: management requirements

There must be at least one general partner in a company. There are no requirements for the residence of a partner.

You can register LP in Ontario by appointing a corporation as a general partner. If it is not registered in Canada, this company firstly needs to obtain an EPC license in Ontario.

There must be at least one limited partner (natural person/legal entity) in each LP.

Offshore zones of Ontario permit the appointment of a non-resident of Canada as a limited partner of LP.

In case of appointing a limited partner of a non-resident company, registration of an extra-provincial corporation in Ontario is not required.

General partner and limited partner may be one and the same person. Therefore, one person is actually required to register LP.