Buying a ready-made LP company and account in Canada
To buy a ready-made LP company and an account in Canada means to become the owner of an offshore business in one of the most reputable jurisdictions in the world. A limited partnership is not subject to corporate fees, so there is no need to file reports. Foreign partners may not pay personal income tax. Among the advantages of this company type is that there is no minimum capital requirement.
What is an LP in Canada
An LP is a company created by several people. It consists of:
- The general partner(s), responsible for all of the LP's loans and obligations. It can be a company that is safer to do business with. For example, it can be a company set up in offshore Belize.
- One or several limited partners have obligations limited by the amount of investment or interest they have made into the company. It's not required to have Canadian citizenship.
Notably, the general partner can also be a limited partner. Thus, the LP can consist of a one person entity. It is also possible to expand the number of companions.
A ready-made LP in Canada is attractive because the company's income can be fully used to grow the business. The income and losses are distributed to the companions at the end of the fiscal year. Canadian residents are required to include these profits on their personal or corporate tax returns. Foreign partners do not have to do this. They are also not subject to withholding tax on income they receive from LP.
Advantages of LP in Canada
- No citizenship requirements for partners.
- There are no business restrictions, so the company can do any business that allows the law.
- LP does not pay corporate tax. Accordingly, there is no need to file an income tax return.
- There are no audit requirements.
- Registration in a reputable jurisdiction automatically gives credibility to international partners.
- There is no minimum authorized capital, so affiliates can contribute any amount.
- No corporate tax and income tax for foreigners.
- Not required to hold an annual general meeting.
Features of buying an LP and an account in Canada
To register an LP in Canada, you need to collect documents, fill out forms, wait for the registrar's decision, and perform other actions. Opening a corporate bank account also takes a few weeks.
Buying a ready-made LP company and an account in Canada quickly solves all these problems and saves tons of time. After completing the transaction, the business can start almost immediately. But there is a nuance. Buying an LP from an unverified seller entails risk because each partnership has a specific agreement that was created with a specific structure in mind. The history of the company is difficult to verify, because the shares are not listed on the stock exchange. Without thorough verification, buying a pig in a poke is possible.
To avoid all kinds of problems, contact IT-OFFSHORE experts. We have many ready-made companies that have been registered but haven't worked. Our specialists will choose the option that suits you best, and help you reissue documents for the company. We will also help with opening a bank account in Canada.