The topic of registration of partnership companies has recently gained great popularity and managed to penetrate deeply into the minds of many businessmen. Of course, Limited Partnerships are the right path to a successful business that is not burdened with paperwork and unnerving checks. An option such as opening a LP is offered by many countries. Where should I go? Canada has become one of the ideal places for registration of Limited Partnerships, and maybe not only for this.
The first thing that Canadian LPs are good for is their reputation. Canada is an excellent financial actor, and here’s why:
- Canada is a member of the World Trade Organization (WTO) since 1995;
- According to a World Bank report, the Canadian economy ranks 7th among 183 global economies;
- Canada has entered more than 88 Double Taxation Treaties (SOIDN);
- Canada is the owner of the highest rates of economic growth among the G7 countries;
- It is a member of the OECD Organization (one of the first member countries of the Organization for Economic Co-operation and Development since 1960);
- Despite the actual onshore nature of Canadian jurisdiction, it is often possible to open offshores. This possibility is determined by the legislation of the country and the tax system.
Tax freedom
A partnership registered in Canada may be completely tax-free. The conditions that must be met in order to get a rate of 0 are very offshore: members of Canadian Limited Partnerships (individuals or legal entities) should not be residents of Canada and should not make a profit on its territory.
VAT
It is known that VAT is a phenomenon that is relevant in the territory of the European Union, which means that VAT has no relation to business registered in Canada - a country that is not a member of the EU. The equivalent of VAT in Canada is an individualized value added tax - Goods and Services Tax (GST). LP GST applies to companies only if the organization interacts with Canadian companies and / or invoices to residents of Canada.
No reports
Participants in the Canadian LP are free from the obligation to submit annual reports to fiscal authorities, undergo audits and hold meetings of partnership participants.
Conclusion
The above facts about Canadian partnerships speak for themselves: Canadian Limited Partnerships are a convenient, profitable and prestigious tool for doing business, which helps alleviate not only tax, but also paper and documentary burdens.
