Company Formation Services in Canada

A partnership is created between two or more people. A partnership is carried out on the basis of a contract or an agreement between the partners engaged in the business. Parties in a partnership may pool their resources and investments as per the requirements of the partnership business. There are different partnership models available in Canada.

General Partnership Firm

In a general partnership firm, two or more partners are required. Partners’ roles and responsibilities are defined in the partnership agreement. All such general partnership agreements are valid for five years. General partnership companies are the easiest company form in Canada, but partners of a general partnership have unlimited liability towards the business. Hence, one must carefully evaluate these conditions before making a decision.

Limited Partnership

In a limited partnership, one general partner and one limited partner are required. The number of partners can be two or more. General partners have unlimited liability towards the business, but limited partners’ liability is only limited to the extent of their investment in the business. Also known as a silent partner, a limited partner shall not bear any managerial responsibility, but he may contribute to business decisions and must be accepted by the general partners in the business. Once again, one must evaluate the benefits and issues of such a set-up before making a decision.

Limited Liability Partnership

This is the most popular form of business in Canada, which requires two or more partners. The biggest advantage is the limited liability partners have in such business forms where partners do not have to bear the liabilities of the business, but it is only extended up to the personal contributions of partners. However, different provinces have different rules concerning partnerships, and one must consult with Helpline Group to make sure you are making the right choice.

Foreign companies may establish branch offices in Canada according to legal licenses issued by the government of Canada. Branch offices must be registered under the provincial government where it is operating. A local agent is usually hired to carry out activities in the branch office in Canada. While Branch offices have tax benefits in Canada, the parent company is directly liable for all activities conducted by a branch office in Canada. On the other hand, the permissible business activities for branch offices may differ from one province to another. Hence, Helpline Group can guide you through these activities and set up a branch office with ease.

A corporation is a desperate legal entity as per the Canadian law. A corporation is considered a legal entity, which means the corporation can engage in every activity a person engages. The liabilities of a corporation is very much limited towards the total investment it has amassed for the business. There are different requirements in terms of tax, management, shares and so on. Registration can be done on federal or provincial levels. While Federal level registration is recognised everywhere, provincial level registration of corporations come with their own limitations. There are different tax benefits and deductions that different type of corporations may avail in Canada. Contact Helpline Group for more information on setting up a corporation in Canada. 

Joint ventures are formed between two or more companies to accomplish a common goal. While all partners contribute to the joint venture, their contributions may differ depending on the agreement and joint venture terms and conditions. While there are no legal practices associated with joint ventures, the law recognises legal agreements and contracts. However, all joint ventures are required act as per the Act of Investment in Canada. Approval of joint ventures may depend on the possible benefits the country may receive from such point ventures. Different provinces also have different rules regarding such activities. Contact Helpline Group for more information on setting up and running a joint venture in Canada.

Cooperatives are another type of incorporation beyond the level of partnership. In a cooperative, people work together to satisfy a common need or goal. Making a product, service delivery, charity and such come under cooperatives in Canada. Canada recognises four type of cooperatives – consumer cooperative, producer cooperative, worker cooperative and multi-stakeholder. Such cooperatives are managed and operated in a democratic manner, and members can choose who manages the cooperative through voting decisions. There are different rules and regulations concerning management and profit distribution in cooperatives in Canada. Contact Helpline Group for more information on managing and setting up cooperatives in Canada.