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 prestigious jurisdictions in the world. 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 pluses 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), who is fully responsible for all of the LP's loans and obligations. It can be a company, which is safer to do business with. For example, it can be a company set up in offshore Belize.
- One / more limited partners - have obligations up to the amount or interest they have invested in the company. Canadian citizenship is optional.
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 interesting because all the income the company receives can be 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/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 is allowed by 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 prestigious jurisdiction, which 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.
- No annual general meeting can be held.
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. After the deal is done, the business can start almost immediately. But there is a nuance. Buying an LP from an unverified seller is fraught with risk because each partnership has a specific agreement that was created with a specific structure in mind. The work of the company is difficult to verify, because the shares are not listed on the stock exchange and without thorough verification you can "buy a pig in a poke".
To avoid 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, help you reissue documents for the company. We will also help with opening a bank account in Canada.