International Success Starts with a Canadian Partnership

As a non-resident of Canada, you have a great opportunity to register a partnership in Ontario. The choice is ever more tempting if you are looking for a safe, reputable place to do business. It opens the doors to the international market and allows you to set up both USD and CAD bank accounts without having to wait. If your business doesn’t make money in Canada, you won’t even have to pay Canadian taxes.

A Canadian partnership is ideal for foreign or offshore businesses that sell goods or services worldwide, especially to the USA and EU. It comes with easy access to US and Canadian banks. You will also be able to work with major payment processors (e.g., Stripe, Square, or Wise), which accept Canadian businesses, and open accounts remotely in Europe and the USA. It is nothing unusual, as Canada’s excellent reputation allows it.

Canada doesn’t have a public register of beneficial ownership for partnerships. This is why it appeals so much to customers who want to keep their personal information private. Yet, you are not spared the duty to disclose beneficial ownership privately for AML checks and to banks.

Compared to so many other jurisdictions, GP (General Partnership) or LP (Limited Partnership) registration in Canada is not only simple but also faster and cheaper. Both natural and legal persons are allowed to be partners in Ontario partnerships, and you can also use Canadian resident or foreign nominees.

Why businesses thrive in Canada

The strong economy and well-thought-out tax system make Canada a top choice for international businesses. The jurisdiction is also not on any tax blacklists. Even if your partnership includes two offshore companies, you’ll get a unique Canadian registration number. This way, you will improve your company’s international image and legally avoid paying Canadian corporate or personal taxes.

The second largest in the country, Ontario is one of Canada’s flourishing provinces. It borders several US states, including New York, and sits in the very center of the country. The capital, Toronto, is a busy metropolis with 5.5 million people.

Toronto is an important financial center and home to the world’s ninth-largest stock exchange by market capitalization. Ottawa, the Canadian capital, is in the eastern part of southern Ontario. This region hosts many of Canada’s businesses, financial institutions, and the federal capital.

General vs. limited partnerships in Ontario

When you register a partnership in Ontario, it will have an official mailing address listed on the public register. Basically, it is similar to a registered agent or office address in other countries. While most documents are now electronic, any mail from local authorities will be sent to this address.

A limited partnership must have at least two partners but is still a rather flexible structure. The limited partner’s liability concerns only their capital investment. The general partner has unlimited liability. LPs are ideal for businesses with outside investors or silent partners.

On the other hand, all partners in a GP have unlimited liability. Banks often prefer GPs due to their transparency. GPs are usually established in different industries, which may include online sales, consulting services, web auctions, web design, affiliate marketing, and the like.

Seamless banking in Canada: expert tips

Your newly established general or limited partnership in Canada will certainly need a bank account to do business. Here are professional recommendations from International Wealth on how to open one without a hitch:

We do not recommend using an offshore company as a partner. While a foreign company may have a go, the process itself takes more time and isn’t as quick or cheap.
Register a Canadian partnership with a Canadian resident as a nominee. This approach will save you time, plus it is more practical for local banks.
The nominee can sign a contract ceding all rights to you. Besides, you are free to structure the partnership agreement so as to protect other partners.
Choose the structure that will work best for you and your interests. You might want the ultimate beneficial owner’s name shown as a partner or prefer to keep this information private.
If you already have a partner in Canada (e.g., a nominee), International Wealth will work with banks to make remote identification of foreign partners possible. Depending on a particular bank, it may be done via video conferencing or local notary certification.
You don’t have to open an account in Canada. Other options include US banks and European EMIs like Wise, which offers virtual accounts worldwide.
Note that we don’t establish accounts at Wise directly. You will do it online after we set up the partnership. Wise mostly suits mainstream businesses. For higher-risk ones, we recommend virtual accounts at EMIs with a higher risk appetite.
Many clients choose Canadian partnerships to open merchant accounts for online sales. For example, Stripe can directly settle USD payments in Canada. Hence, a Canadian partnership is an excellent intermediary for selling into the US market.
International Wealth also offers ready-made partnerships with bank accounts already available. Pass our internal due diligence, and you will receive business details, certified partnership documents, your bank account number, and online banking access on the same day. This way, you can start trading immediately while we amend the partnership agreement and inform the bank of the new partners.
To bank in Canada, you should have a Canadian resident as a nominee partner. They are in charge of important tasks and represent your company in banks and before local authorities. The nominee must follow Ontario and Canadian anti-money laundering laws. To take full responsibility for your transactions, they need to be sure your business is legal.

International business people who choose to operate via a partnership in Ontario, Canada, enjoy multiple benefits. This jurisdiction is highly respected, and it allows you to open bank accounts with Canadian banks via a professional nominee partner. If you conduct business outside Canada, you won’t have to pay income tax. There is also no corporate tax, and the flexible partnership structure promotes easy growth.