Canada is the second largest country in the world with one of the most developed economies. There is a strong multicultural influence on business life, and as a result, offshore company registration and the taxation environment are both subject to favourable regulations.
Advantages of canadian company formation
The most popular company form for managing international trade and investment deals is the Limited Liability Partnership. This type of business does not qualify as a taxable entity, so it does not have to pay corporate tax on its profit. The company is considered to be “transparent” for taxation purposes, so any tax liability arises only for the income of the members, that is, only the owners must pay income tax on the profit. If the members are not domestic persons, no tax should be paid even on the profit of the business locally by owners either (provided that the profit does not come from Canada). The company is required to keep records of business events but the records need not be stored in Canada; furthermore, it does not need to submit a tax return as it does not qualify as a taxable entity.
Requirements of canadian company formation
At least two members are needed to set up a Limited Liability Partnership, both of whom have limited liability for the debts of the company. There is no upper limit on the number of members and it is also possible for another company to join in as a member. The members can choose the person authorised to represent the company in the articles of association. There is no minimum requirement for the equity of the business; moreover, the members do not need to pay up any money to the bank account of the offshore company. The data of the members and the representative are not recorded by the local court of registration.