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Ontario LP Formation

Starting a Limited Partnership in Ontario, Canada

Overview of Starting a Business in Ontario, Canada

Starting a business in Ontario, Canada can be an excellent choice. Ontario offers a stable economic and political environment that provides numerous advantages for international entrepreneurs. With attractive tax conditions and the ease of opening business accounts, Ontario is a preferred location for LP formations.

To give you a comprehensive overview, we have compiled the following information:

Table of Contents

General Information on Starting a Business in Ontario, Canada

The Business Location Ontario, Canada

Requirements for Starting a Business in Canada (Ontario)

Legal Forms in Canada (Ontario)

Ontario Limited Partnership – The No. 1 for Your Business Formation in Canada

Full-Service-Paket für Ihre Firmengründung in Kanada

General Information on Starting a Business in Ontario, Canada

One key advantage of starting a business in Ontario is the favourable tax system. In Canada, the Ontario Limited Partnership (LP) is not subject to corporate tax if revenues are exclusively earned abroad. This makes the Ontario LP particularly attractive for international entrepreneurs operating globally.

The partners of the LP are responsible for taxing their profits based on their individual tax residency. This can lead to significant tax savings through strategic relocation, such as to Dubai. There is no obligation to file annual financial statements, which further reduces administrative burden.

The Business Location Ontario, Canada

Ontario, the most populous province in Canada, offers first-class infrastructure and an economy that is particularly attractive for business startups. The capital, Toronto, is the economic heart of Canada and a significant financial centre that hosts numerous international companies. Moreover, Canada’s political stability contributes to making Ontario a preferred location for business formation.

Establishing an Ontario Limited Partnership

Requirements for Starting a Business in Canada (Ontario)

Starting a business in Ontario requires some specific documents and various steps to ensure everything runs smoothly. Below are the key requirements and necessary preparations for an LP registration in Canada:

Passport copy: A valid passport is required to verify the identity of the founders.
Bank reference letter: If a bank account is to be opened, a personal reference letter from your current bank is required.
Utility bill: A recent bill (water, electricity, or landline bill) to confirm your residence is necessary.
Partnership agreement: Creating a detailed partnership agreement that outlines the rights and obligations of the partners is essential. We are happy to assist you with this.
Registration forms and resolutions: These include the official documents for appointing the limited partner and the general partner. These forms are part of the founding documents.
Registered office and service agent: You need a registered office in Ontario and a service agent who can receive official documents. This service can be organised by us upon request.
Minimum capital requirements: There are no specific requirements for minimum capital, which significantly facilitates the formation process.

By meeting these requirements, setting up can be made quick.

Legal Forms in Canada (Ontario)

For non-resident members, the Ontario Limited Partnership (LP) is an ideal business tool. This LP offers numerous advantages, including no corporate tax liability in Canada if revenues are exclusively earned abroad, and simple and flexible management.

Comparison with Other Corporate Forms:

Corporation (C-Corp):
This corporate form is particularly suitable for large companies. However, it is subject to Canadian corporate tax and requires detailed accounting. For non-resident shareholders, it is less attractive due to high tax and administrative requirements.

Limited Liability Company (LLC):
Similar to the Ontario LP, the LLC offers a flexible structure with limited liability. However, the LLC is not as common in Canada and can be more tax-complex, especially for non-resident shareholders.

General Partnership (GP):
This form of partnership does not have limited liability, meaning the partners are personally liable for the company’s debts. This makes it less attractive for non-resident shareholders.

Sole Proprietorship:
A sole proprietorship is the simplest legal form in Canada, but the owner is personally and unlimitedly liable for all debts. This form is also not suitable for non-resident members as it offers no limitation of liability.

Non-Profit Corporation:
This legal form is reserved for charitable organisations and requires strict compliance with regulations. It is unsuitable for business purposes.

Our Conclusion

The Ontario Limited Partnership (LP) represents the ideal business form for non-resident shareholders, offering tax advantages and simple and flexible management. Compared to other corporate forms in Canada, the LP provides the best conditions for international entrepreneurs.

Ontario Limited Partnership – The No. 1 for Your Business Formation in Canada

The Ontario Limited Partnership (LP) is the preferred business form for non-resident entrepreneurs due to its tax advantages, simple management, and flexibility.

Step-by-Step Guide to Starting a Business in Canada (Ontario)

Preparation of necessary documents:

Passport copy
Bank reference letter
A recent utility bill for residence verification

Creation of a partnership agreement:

Definition of the rights and obligations of the partners
Appointment of the limited partner and the general partner

Completion and submission of formation documents:

Organisational resolutions
Official registration of the LP

Setting up a registered office

Appointment of a registered agent

Opening a business account:

Selection of a bank and submission of required documents

Application for a business licence (if required):

Verification of whether a specific licence is necessary for the business activity

Start of business activities:

Establishing the LP structure
Beginning operational business activities

By following these steps, the formation of your Ontario LP in Canada can be conducted efficiently and successfully.

Full-Service Package for Your LP Registration in Canada

If you want to start an LP in Canada, we are your partner. We offer our clients a comprehensive full-service package that covers all aspects of LP creation, including our bank account support for opening your business account. Our service is all-inclusive, with all services covered by an all-inclusive fee, allowing you to focus entirely on your business.

Do not hesitate to contact us. Our experienced team is always available to answer your questions and guide you through the entire registration process.

Securely Establish an Ontario Limited Partnership

We look forward to helping you realise your business venture in Canada. Trust our expertise and let us ensure the success of your company in Canada.

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Aspect	Dubai Freezone Company*
Jurisdiction	The free trade zones are independent economic zones with their own administration. Each zone has its own procedures for formation, licensing and supervision.
Ownership	100% foreign ownership is possible. A local sponsor is not required.
Scope of activities	The freezone is ideal for internationally active companies that operate outside the United Arab Emirates or maintain business relationships with other freezones. Direct trade on the local market is generally not provided for, but can be enabled through supplementary models (e.g. distribution partners or additional license).
License / Business purpose	Each freezone offers industry-specific licenses, e.g. for trade, services, technology or production. The granting is done directly by the respective freezone authority.
Office / Establishment	Each freezone company requires an establishment – e.g. Flex-Office, Shared Desk or an own office. We offer Full-Service packages that already contain a complete solution and enable immediate operational readiness.
Visa / Employees	Entrepreneurs and employees can obtain Residency visas. The number depends on license and office size.
Corporate tax (Corporate Tax)	Profits up to AED 375,000 per year remain tax-free. Only the profit exceeding this is taxed at 9%. Companies in a freezone that meet the legal requirements can continue to apply the tax rate of 0% on qualifying income. Small businesses with an annual turnover of up to AED 3,000,000 are completely exempt from corporate tax until the end of 2026.
Profit transfer / Withholding tax	Profits and capital can be transferred abroad without restriction. No withholding tax is levied.
Costs	Formation and ongoing costs are usually cheaper and clearly calculable. After individual consultation, we determine the optimal location and, upon request, submit a tailor-made offer that includes all services.
Conclusion	A Freezone company in Dubai is the ideal structure for entrepreneurs who are internationally active or want to conduct business with partners worldwide from Dubai. It offers full ownership rights, tax advantages and a modern, business-friendly environment.

Aspect	Dubai Mainland Company*
Jurisdiction	The mainland is subject to the state authority Department of Economy & Tourism (formerly DET) and other onshore authorities. These control all economic activities within the UAE.
Ownership	In many cases, 100% foreign ownership is also possible. In individual, regulated areas, special approvals may be required.
Scope of activities	Mainland companies may conduct business without restriction within the entire UAE. They are therefore the right choice for companies that want to be locally present and offer their products or services directly on site.
License / Business purpose	Licenses are granted centrally by the state onshore authorities. The procedures are more extensive and often subject to additional requirements.
Office / Establishment	On the mainland, a fixed business location is mandatory. As a rule, stricter area requirements and rental obligations apply here.
Visa / Employees	Mainland companies can also apply for visas for owners and employees.
Corporate tax (Corporate Tax)	For mainland companies, the same principle applies: profits up to AED 375,000 remain tax-free, above that the rate of 9% applies. This regulation ensures moderate tax burden and high planning security.
Profit transfer / Withholding tax	Mainland companies can also transfer profits freely. No withholding tax is levied either.
Costs	Formation is more complex and generally more cost-intensive. State fees, rental costs and administrative requirements are higher.
Conclusion	A Mainland company is suitable for entrepreneurs who want to be locally business active in the UAE – for example in trade, gastronomy or services for customers within the emirates.