LLP in BC (Canada) as non resident ,while having global trade business in EU and UAE as EU citizen from Finland is good option? I'm looking for third party services to register LLP in Canada with affordable cost around service charge between 100-150CAD+ government charges separately. the process looks pretty simple but lawyers and asking too much fees for filling of single form and name approval form. can anybody help with any leads? I saw online third party service like Freedom surfer but I feel its scam and i don't really see any reviews about them.
Is an LLP in British Columbia good for an EU trader with business in the EU and UAE?
- Thread starter Sonia Thakkar
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Yes, it works as long as you do not sell in Canada. If you sell in Canada, you have to report GST in all provinces and territories (which you do not have to if you ship in from the US etc.) once you reach 30k CAD in global sales (that is world-wide, not just Canada).
BC has annual report filing
ON has renewal every 5 years
I would probably try ON first. Unless the LP is owned by a foreign company in which case, you need a costly EPC licence in Ontario.
From my opinion the Freedomsurfer offer sounds reasonable and good. You may be able to do it yourself if you have time to go there (which you always should have).
BTW: if you use Freedomsurfer, you can use the code "jase" at checkout for a discount. I found it here some years ago:
https://jaserodley.com/best-country-to-incorporate-an-online-business/
Please also note that if you live in Finland, your government will probably deem hour computer (or office) as PE and it will be taxable in Finland.
Freedomsurfer claims that you cannot do it online. I am not sure. Maybe, you can try and report to us:
https://freedomsurfer.com/bc-llp/
https://www2.gov.bc.ca/assets/gov/e.../pack_01_llp_-_registration_forms_package.pdf
I think these guys may be cheaper for you:
https://brcbc.ca/product/llphttps://instantnuansreport.ca/product/register-a-limited-liability-partnership-llp/https://mdlegals.ca/product/bc-limited-liability-partnership/
Last edited: Feb 20, 2024
BC has annual report filing
ON has renewal every 5 years
I would probably try ON first. Unless the LP is owned by a foreign company in which case, you need a costly EPC licence in Ontario.
From my opinion the Freedomsurfer offer sounds reasonable and good. You may be able to do it yourself if you have time to go there (which you always should have).
BTW: if you use Freedomsurfer, you can use the code "jase" at checkout for a discount. I found it here some years ago:
https://jaserodley.com/best-country-to-incorporate-an-online-business/
Please also note that if you live in Finland, your government will probably deem hour computer (or office) as PE and it will be taxable in Finland.
Freedomsurfer claims that you cannot do it online. I am not sure. Maybe, you can try and report to us:
https://freedomsurfer.com/bc-llp/
https://www2.gov.bc.ca/assets/gov/e.../pack_01_llp_-_registration_forms_package.pdf
I think these guys may be cheaper for you:
https://brcbc.ca/product/llphttps://instantnuansreport.ca/product/register-a-limited-liability-partnership-llp/https://mdlegals.ca/product/bc-limited-liability-partnership/
Last edited: Feb 20, 2024
Thanks Mr. Daniel for your valuable feedback.
ON option currently not available for non resident, Only BC province is currently has this provision for non resident to have LLP.
I also have few queries with BC provience,
1) Does Partnership Agreement needs to be submitted in BC registry along with other docs, and does it mandatorily needs notarized?
2) Does Article of Association or MoA needs to be drafted and needs to be submitted to BC registry?
3) any other compulsory compliance in Canada federal or BC province level for Non residents and when no business activities in Canada?
4) will my LLP needs to be register CRA Business number, or i will get it automatically after registration?
5)
Is it an answer from Freedomsurfer or all other agents too? I was interested in this option with ON, but by the law such LP has to have a registered adress in ON with the partnership documents stored there. It's unclear how they're resolving this
No, this idea is not shared among most of the internet. Anybody can do it. I personally would recommend ON.
https://freedomsurfer.com/on-lp/https://www.apintertrust.com/incorp...ed_partnership_in_canada_for_nonresidents.htm
Please use Google before posting.
What to google? "A limited partnership is required to keep at its Ontario address records of its partners, copies of all resolutions and Partnership Agreement. " it's a quote from your second link. Freedomsurfer doesn't offer such address, therefore you are breaking a law
Yes, if you are worried, you can use anytimemailbox.com, send them the documents, the government wants and then let them keep the letter forever.
Can you just do me one favour, please? If you print out the papers on sticky labels, Please do not stick them over mine behind the fire hydrant on the second floor. Thanks.
Last edited: Feb 20, 2024
Can you just do me one favour, please? If you print out the papers on sticky labels, Please do not stick them over mine behind the fire hydrant on the second floor. Thanks.
Last edited: Feb 20, 2024
Ontario does allow for non residents to open both Ltd/Inc. companies and LP's. You can even do so online if you open a MyOntario account - https://signin.ontario.ca/. I'm sort of in a similar sitaution: EU Resident and I do some International Import/Export/Commodity trading. I have one company in my country of residence (France) and I have an LP in Ontario. I do hold dual citzenship with Canada, but I am not at all tax resident there and have not been for more than 20 years.
Banking was a bit tricky - but I am regularly travelling back and forth to Canada every few months, so on one of my trips I opened a bank account in person at a branch. Other than this, setting up an LP as a non-resident (foreigner or citizen) is pretty easy to do and I think it's like $300 CAD for like a 5 year license or something. In my case I set up the General Partner of my LP as my French LLC (an SAS in French). I did NOT need to register this SAS as an EPC as the SAS is sort of like a US LLC and these are not company structures with equivalences in Ontario. So I just declared my French SAS as the GP with an Extra-Provincial LLC declaration form - it is different from the EPC form.
You will get a BIN number when you register in Ontario, and this serves as your LP Identifier.
Do i also need to submit like LP agreement of me and my partner (husband) in ON registry? what other documents u have submitted while registration? I assume that LP agreement would be just part of my LP record as for an internal record purpose. I hope that's correct?
Also when we transfer the Share Capital to LP business account from our own account? does that Capital also subjected to return to partners ? can u explain about share capitals in LP, how does that work? do we need to document it?
Thank Mr.Dbeker . I appreciate for providing info. Yes I'm trying to register Lp in On on my own through Ontario government registry (myservice ontario portal). just have to get virtual business address. I hope i will be able to do the complete process online. I'm planning to seel Wise account for my online business and also global Trade business activities. I also thinking to have other offshore account for my personal and business use, which has less service fees, transaction cost. Do you recommend any other offshore banks or aware about any banks. Im EU citizen (finland), but planning to relocate to Dubai with my family may be in 2025.
Thanks once again! 🙂
The LP Agreement is an internal document that you use between the GP and the LP. It is not published with the Ontario government when you register the LP, however banks will likely ask for a copy. My set up is very simple and I just used LawDepot.ca for mine. But if you have a more complex business and set up, you should perhaps consider using a local law firm. Share Capital in an LP is a bit different from that of an incorporated entity. Your LP Agreement will usually stipulate how profits are shared/transferred to the LP's, also how much your GP will charge as management fees etc. The most common set up would be that LP's get their profit based on their capital contributions, as a percentage. So say you put in 1000 CAD as your contribution and you have decided that this is worth 50% of the capital in the LP then you would get 50% of the profits when due. Maybe the other 50% of the capital will be sold to multiple partners and this can be of a value higher than 1000 CAD if you decide. Of course it won't be of much interest for the other Limited Partners, but just to show that at the end of the day you make up the rules so to speak. Again the LP Agreement needs to stipulate these rules - and you will need to convince your Limited Partners to buy into it! But the LP itself isn't a taxable entity (unless you are really doing business in Canada) and it is a pass-thru structure similar to a US LLC.
In Canada, I went with National Bank of Canada (nbc.ca) for banking. Had to set it up at a Branch visit as opening an account as a non-resident can't be done remotely. But if you are planning to relocate and take up residence in Dubai, you might be better off avoiding the Canadian LP altogether and just set up a company in Dubai given that you're planning to relocate there shortly.
Are you saying that by using a US LLC as general partner you don't need to register as EPC?
A US LLC is not an incorporated entity according to the Ontario Corporations Act. So you do NOT need to register it as an EPC. But if you are going to make it a General Partner of your Ontario LP, you will need a BIN number for the US LLC. In order to get a BIN, you will need to register the LLC as an Extra-Provincial LLC in Ontario. This is different from an EPC. It is more of a declaration of a US Entity (with a US address etc.) needing an Ontario BIN but it does not subject it to additional compliance obligations like an EPC would. https://businessregistration.ca/buy/business-name-registration/ontario-llc-form-6/ - you can do it online in the ServiceOntario portal, but thi is what the form looks like.
https://www.cogencyglobal.com/blog/registering-us-llc-in-canada
Many moons ago i've read this post about registering a business in Canada and this phrase stuck with me: "Extra Provincial Corporations are completely tax-free and do not have to keep records, provided that they do not have income stemming from Canada."
Do you know if this is actually true?
It sounds almost too good to be true but you'll never know.
Do you know if this is actually true?
It sounds almost too good to be true but you'll never know.
Yes, it is not a company of its own. It is a foreign company registered in Canada. They are indeed tax free in Canada apart from local income. But very well on their original jurisdiction.
ON and BC (L)LP are also tax free and are partnerships under Canadian law. It is more interesting.
It depends on your objectives - whether you really need a Foreign Corporation in Canada or if a Foreign LLC will do instead. They are two different structures. The Foreign LLC is simple enough to set up in Ontario at least, without any local presence obligations. It is pass-thru and so no local tax/reporting obligations unless doing business in Canada. The EPC on the other hand is more expensive and comes with more obligations, including a local presence. I don't think it's as 'tax-free' as people think it is as it comes with some reporting requirements as well. Getting back to the original topic though - Ontario LP with a US LLC (or foreign equivalent) as a GP is a fairly easy set up with minimal paperwork and fairly cheap to set up. Can be done on your own, online. Opening up a bank account though is another matter and this requires some efforts and most likely a visit to Canada if you are abroad. Things like WISE may be do-able, but they are not true bank accounts and so long term they may not be very suitable.
Hi, did you set up your company?
can you tell us how you did it?
I should do one in Canada too but I'm undecided between British Columbia or Ontario
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