Formation of Canadian Limited Liability Partnership
Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering 9.98 million square kilometers (3.85 million square miles), making it the world’s second-largest country by total area and the fourth-largest country by land area.
The country holds the sixth position in the economic freedom ranking according to The Heritage Foundation.
It is one of the best choices for international trade and for providing any type of services especially when European VAT is not desired.
Located in a highly prestigious jurisdiction Canadian Limited Liability Partnership is a form of business that is providing a good alternative to UK LLP or Scottish LP.
Canada is one of the most developed countries with stable financial system and high level of income per capita. A Limited Liability Partnership registration in Canada offers different advantages than other company formation. Canadian LLPs are transparent for the tax purposes – the taxation is performed at the level of partners at the place of their tax residence.
Canadian Limited Liability Partnerships are not considered as offshore companies as there is no offshore legislation in Canada.
All companies are formed under the same legislation, whether they do business in Canada or outside of the territory.
Canada Limited Liability Partnerships that do not derive any income from sources in Canada and have partners who are not Canadian residents are not subject to tax.
Advantages of formation of Canadian Limited Liability Partnership:
Summary of Canadian Limited Liability Partnership and main characteristics:
| General Information | |
|---|---|
| Type of company | Limited Liability Partnerships (LLP) |
| Corporate Legislation | Part 6 of the British Columbia Partnership Act 2000 on 17th January 2005 |
| Taxation | For Non-resident sourced activities - Corporation Tax – 0% Tax on Dividends – 0% Territorial taxation system 0% for non-residents that do not derive any income from sources in Canada. |
| Currency | Standard Currency - Canadian dollar ($) (CAD) |
| Paid up capital requirement | No paid up capital required |
| Time zone | GMT-7 (Vancouver) |
| Members (Partners) | |
| Minimum no. required | 2 |
| Local Member required | No |
| Location of Meetings | Anywhere |
| Company Secretary | |
| Required | No |
| Local Secretary required | No |
| Registered office required | Yes |
| Share Capital | |
| Standard Currency | Partners Contribution can be in CAD, USD |
| Standard Authorized Capital | Usually 100 CAD or USD |
| Minimum paid up capital | There is no minimum authorized capital. Partners can make any contribution to the limited partnership. |
| Accounting Requirements | |
| Preparation of accounts | If the LLP has: - five or fewer partners - does not carry on business in Canada - and does not have any Canadian partners then for a BC LLPs is not necessary to submit annual Partnership Information Returns to the Canadian Revenue Agency |
| Requirement for audit | No |
| Accounts public accessible | No, BC LLP accounts are not required to be publicly filed or disclosed. |
| Requirement to file Annual Return | Yes (can be completed by Consil Formation). It contains limited information like registration number, name of LLP, date of registration and date annual report. |
| Further Information | |
| Bearer shares | No |
| Confidentiality | Yes |
| Nominee services | Available |
| Need to travel | No |
| Apostille | No, apostille is not available, documents can be certified and consular legalization is possible. |
| Owners | Individuals or Corporate |
Register your Canadian Limited Liability Partnership
- Document Notarization per document: € 500
- Bundle of documents Notarization;
- Document Apostillation per document;
- Bundle of documents Apostillation.