How to Register Your Limited Partnership in Ontario, Canada?: A Step-by-Step Guide

In this article, we have discuss about how to register your limited partnership in Ontario, Canada in 2024-25. Read the complete article to know more about registration process, advantages and documents required.

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register your limited partnership in ontario

Overview: Setup a Limited Partnership in Ontario

Starting a business in Canada is an exciting venture, and choosing Ontario as your base is a strategic decision for many entrepreneurs. With its robust economy, diverse population, and access to a wealth of resources, Ontario is not just a place to start a business—it’s a launchpad for success.

But what if you could take your business ambitions even further? If you’re looking for a way to minimize tax burdens while maximizing your investment potential, setting up a Limited Partnership in Ontario could be your golden ticket. This unique business structure not only offers flexibility and protection but also allows you to attract investors without the same level of risk typically associated with sole proprietorships or general partnerships.

So, if you’re ready to turn your entrepreneurial dreams into reality, let’s dive into the ins and outs of setting up a Limited Partnership in Ontario and explore how it can be the perfect fit for your business aspirations.

How to Register a Limited Partnership in Ontario, Canada?

The following steps to register a limited partnership in Ontario, Canada include:

  1. Choose a unique name: The first step to register a limited partnership in Ontario is to choose a unique name for your limited partnership. The name should be unique, ethical, and registered with the Ontario Business Registry.
  2. Prepare a legal partnership agreement: The second step is to prepare a legal partnership agreement which provides roles of the general partners (who manage the business and have unlimited liability) and limited partners (who contribute capital and have limited liability).
  3. File a declaration of limited partnership: The third step is to file a declaration of limited partnership. The application form must be filled correctly and submitted to the Ministry of Government and Consumer Services. You can file online through ServiceOntario. The declaration includes information about the partnership name, partners, principal place of business, and other relevant details.
  4. Pay the registration fee: The fourth step is to pay the registration fee. After submitting your application form, you need to pay the registration fee to ServiceOntario.
  5. Obtain a business number: The fifth and final step is to obtain a business number. You need to register with the Canada Revenue Agency to obtain a business number for tax purposes.

Documents Required to Incorporate a Limited Partnership in Ontario

The following documents are required to register a limited partnership in Ontario:

  • Partnership agreement
  • Registered office address
  • Identity cards or valid passports of the partners
  • Name check certificate
  • Notary deed
  • Power of attorney

Advantages of Limited Partnership in Ontario

The list of advantages of limited partnership in Ontario includes:

  • Limited Liability: Partners are generally not personally accountable for the partnership’s debts or liabilities that exceed their agreed-upon contributions.
  • Flexibility: They provide more flexibility than corporations, with less formal obligations and a more straightforward structure.
  • Partnership Structure: Unlike corporations in Canada, limited partnerships are not separate legal entities. They are formed by a partnership agreement that outlines the rights and responsibilities of the partners.
  • General and Limited Partners: Limited partnerships typically have two types of partners: general partners who manage the business and are personally liable for its debts, and limited partners who invest in the business but have limited liability.

Conclusion

Selecting a partnership name, creating a partnership agreement, making a declaration of limited partnership, paying a registration fee, and acquiring a company number are all essential elements in the process of registering a limited partnership in Ontario. Even though it might appear simple, it’s crucial to speak with tax and legal experts to make sure that all relevant rules and regulations are followed.

You can create your limited partnership and take advantage of its advantages by carefully following these steps and consulting an expert. Contact OnDemand International’s experts to set up your limited partnership in Ontario.