Lexon Incorporations: Corporate, accounting, trust
Lexon Incorporations: Corporate, accounting, trust
Canada: Limited Partnership

General information about the country

Canada is a federal state which ranks second largest globally in terms of area. The border between Canada and the United States of America is the longest border in the world.

Canada consists of ten provinces being Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, Quebec and Saskatchewan.

The history of Canada covers numerous wars. These have largely involved the European countries of France, the Netherlands and the United Kingdom, which have all defended their rights to this overseas territory. Due to many years of fighting, from 1760 onwards, nearly all of Canada was under British influence.

In 1867, following unification of a number of English colonies, the establishment of the Canadian Confederation was declared. Whilst the Confederation had the right to form its own government, it only still had the status of a dominion being a part of the British Empire. In 1931, the former metropolitan country of the United Kingdom recognized the independence of Canada. The Statute of Westminster was duly signed. Under this Statute, no law of the British Parliament was applicable to Canada without its own consent. Accordingly, the competence of the government of Canada was expanded in both international and domestic affairs.

In 1982, the Constitution of Canada came into effect.

Legislation

The legislation of Canada was founded under the influence of legal systems of various European countries whilst they possessed the territory of Canada during the sixteenth to eighteenth centuries.

Following the Battle of Quebec in 1756, in practical terms, all of Canada was under British control and the vast majority of the national legislation is based on the common law system established by the United Kingdom.

Most provinces in Canada are English-speaking, with only Quebec being a predominantly French-speaking population.

In most cases, legal entities in Canada are registered with the registry of a particular province.

Corporate characteristics:

Main:
Company typeLimited Partnership
Corporate legislationPartnership Act of the respective province
Language of company documentsEnglish
Corporate endingLimited Partnership
Authorised capital:
Minimum amountCAD 2
Standard amountCAD 1,000
Standard currencyCAD
Permitted currenciesCAD, USD
To be paidNo regulations
Partners:
Minimum number2
Maximum numberNo restrictions
Publicly accessible recordsYes
Directors:
Minimum numberNot considered by law
Local directorNot considered by law
StatusNot considered by law
Publicly accessible recordsNIL
Secretary:
Minimum numberNot considered by law
Local secretaryNot considered by law
Publicly accessible recordsNIL
Reports:
Filing an Annual ReturnNo requirements
Fiscal yearEstablished by the company
Financial StatementsYes
Publicly accessible Financial StatementsNo
AuditorNo requirements
Filing a Tax ReturnYes
Corporate taxation:
On trading incomeL.P. is not considered as separate taxpayer
On passive incomeL.P. is not considered as separate taxpayer
Double Tax Treaty network:Not applicable for Canada L.P. with foreign members

Additional information on taxation

Taxation in Canada is implemented at two levels. Primarily, federal (or national) taxes are levied at the effective rate of between 11% and 15%. Additional levies are made by the relevant province whereby these local tax rates amount to between 6% and 18%.

Limited Partnerships which have non-resident founders who do not derive any income in Canada are not taxed at the level of the partnership itself.

The partnership tax information return (TP 5013) must be filed within five months following the end of the fiscal year. TP 5013 has to be filed by companies operating in Canada. TP 5013 also has to be filed by Canadian partnerships with one or more resident partners regardless of the place of business where the partnership is carried out.

Conclusions

Canadian limited partnerships have become increasingly popular amongst the business community. They are a reputable and prestigious instrument for international trading operations.

In particular, Canadian Limited Partnerships may be used for the purchase of goods in the European Union and their further export to other countries.

As a Canadian Limited Partnership is not a resident of the European Union, export from the European Union countries on its behalf is obvious. In contrast, where the goods are purchased on behalf of a company registered in any European Union country, the seller of those goods may not be sure whether this transaction is treated as an export from the European Union, and thus exempted from VAT procedures or not.

http://lexcorp.com/en/jurisdictions/canada/ - Canada: Limited Partnership

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