Atrium and Associates Corporate and Legal Services

Have you decided to set up business company in Canada, Nova Scotia?

Opting to establish your presence in Nova Scotia reflects a choice to engage in business within a province fully dedicated to your triumph. The unparalleled assistance provided by our team of specialists in business development is geared towards fostering the expansion of your endeavors here.

Nova Scotia has emerged as a prominent jurisdiction in North America, Canada, serving as an advantageous hub for the global financial services sector. Setting up your company in Canada, Nova Scotia, will mean you will be exploring an exceptional worldwide hub for shared services and middle/back-office activities encompassing banking, fund administration, and insurance.

Positioned at the midpoint between the Americas and Europe, Nova Scotia offers a wide range of strategic and financial benefits that consistently captivate esteemed international financial services and insurance corporations. These advantages have led to the attraction of premium-tier companies, inducing them to establish top-tier middle/back-office setups and shared services operations catering to both in-house and outsourced clients. This approach has effectively propelled the growth of their global presence.

Why incorporate in Nova Scotia

When starting a business?

Canada legislation provides an opportunity of registering and using corporate entities in Canada, with a zero-tax rate. These are the Limited Partnerships.

Canada Limited Partnership (LP) works as a specialised partnership structure that needs a minimum of two partners. Among these partners, there exists the role of a General Partner, while the remaining associates hold the designation of Limited Partners.

A Canada LP with overseas partners, not operating or generating income in Canada, is not subject to local taxation in Canada. According to tax laws in Canada, a Nova Scotia Limited Partnership is not considered as a taxable entity; in such cases, taxation falls upon each partner, who is liable for the payment of taxes generated by the LP, on the proportion of its share ownership, at their own country of residence.

Additional key points when registering your business company in Canada, Nova Scotia, include:

• No restrictions concerning the choice of jurisdiction for incorporation.
• There is no requirement for public disclosure or filing of accounts.
• Compliance involves submitting an annual report to the Registry.

Nova Scotia Limited Partnership Advantages are the same as those offered by UK LLPs.

A Nova Scotia Limited Partnership (LP) comes into existence through the registration of a partnership with the Nova Scotia Corporate Registry. This formation involves two or more entities, whether corporate or individual, entering into a partnership agreement with the purpose of conducting a lawful business for profit.

Unlike the limitations imposed on registering LPs for professional practices in other Canadian provinces, Nova Scotia Limited Partnerships face no such constraints.

The partners involved in a Nova Scotia LP can be from any jurisdiction of incorporation or residence, offering flexibility in partner selection.

For streamlined governance, it is advisable for the partners to establish a written partnership agreement.

The financial records of Nova Scotia LPs are not required to be made publicly available or disclosed.

The partnership agreement, serving as the foundational document of the LP, remains private and is exempt from registration or public exposure.

Nova Scotia LPs are obligated to submit an annual report to the Nova Scotia Corporate Registry. While these reports are accessible for public inspection, they contain limited information.

In most cases, Nova Scotia LPs need to submit annual Partnership Information Returns to the Canadian Revenue Agency. These returns detail the distribution of profits and losses among partners within the LP. However, this obligation can be waived if the LP meets certain criteria: having five or fewer partners, not conducting business in Canada, and lacking Canadian partners.

It's feasible to structure a Canada LP in a way that makes it transparent for taxation purposes.

Canada, Nova Scotia

Main advantages of a Nova Scotia LP

A Nova Scotia Limited Partnership (LP) offers several advantages that make it an appealing business structure for certain types of businesses. Some of these advantages include:

Limited Liability for Limited Partners:

One of the primary benefits of a limited partnership is the separation of liability between the General Partner and Limited Partners. Limited Partners are not personally liable for the debts and obligations of the partnership beyond their initial investment, providing a layer of protection.

Flexible Management Structure:

Limited partnerships provide flexibility in terms of management. The General Partner assumes full management responsibility and liability, while Limited Partners can participate in profits without being actively involved in management decisions.

Pass-Through Taxation:

Limited partnerships enjoy pass-through taxation. This means that the partnership itself does not pay taxes on its income; rather, profits and losses flow through to the individual partners' tax returns. This can simplify taxation and potentially result in lower overall tax liability.

Investment Opportunities:

Limited partnerships are often used for investment purposes, allowing investors to pool resources and invest in larger projects while still limiting personal liability. This structure can be attractive for real estate, venture capital, and other investment ventures.

Privacy:

Limited partnerships in some jurisdictions, including Nova Scotia, offer a level of privacy since the names of Limited Partners are not typically required to be publicly disclosed, unlike in some other business structures.

Ease of Formation:

Establishing a limited partnership is relatively straightforward. It involves creating a partnership agreement that outlines the roles, responsibilities, and profit-sharing arrangements among partners

Transferability of Ownership:

Ownership interests in a limited partnership can often be transferred or sold, allowing for changes in ownership without significantly disrupting the partnership's operations.

Access to International Markets:

If the limited partnership engages in international business, Nova Scotia's favorable location and business environment can provide opportunities for tapping into international markets.<

Credibility:

Operating as a limited partnership can lend credibility to your business, especially if you're involved in industries where this structure is common.

Limited partnerships are generally used by hedge funds and investmen tpartnerships once they provide the way to raise capital without losing control.

Key Corporate Features

Operational Aspects

The functionality of a Limited Partnership (LP) is overseen by a sole general partner who holds a majority ownership stake. Operating with minimal procedural formalities, an LP incurs modest administrative costs while maintaining transparent guidelines for capital accumulation. Nevertheless, pivotal decisions remain the prerogative of the general partner, while limited partners are consistently kept informed without actively participating.

Financial Management

Internal tracking of income, expenditures, and cash flow is conducted, supplemented by external assistance for various accounting tasks. Although public reporting is not obligatory, general financial data is necessary for effective LP management, meeting the requirements of stakeholders like bankers and limited partners.

Taxation Structure

Compulsory filing of separate tax returns on behalf of the partnership is not mandated. Each partner is individually subject to taxation based on their respective profits, proportionate to their ownership stake within the LP. Taxable income is subject to personal tax rates, applicable to individuals resident in Canada. As the LP is not recognized as a distinct legal entity for tax purposes, all generated profits cascade through the LP to its partners. These partners then fulfill their tax obligations based on the regulations of their respective countries of residence. Consequently, LPs are exempt from the obligation to submit tax returns or settle income taxes in Canada.

An Alternative Structural Approach

For your consideration, an alternative structure involves the registration of your Nova Scotia Limited Partnership featuring two corporate partners. These corporations are incorporated offshore, such as in jurisdictions like BVI or HK, which offer advantageous corporate tax rates on corporate earnings.

Legal Accountability

The general partner shoulders full liability for the entirety of the partnership's assets and liabilities. Limited partners, on the other hand, benefit from restricted exposure. In the event of legal claims, solely the personal assets of the general partner can be targeted for potential seizure.

Atrium Services

Atrium is offering special packages that include Business Company registration in Canada, Nova Scotia, plus fully functioning bank account with debit card and online banking, to enable you to operate your account remotely.

For those requiring a higher degree of confidentiality and anonymity,our Premium Package includes all services of a Business Package plus full Nominee Services.

How Atrium can Help You!

Should you have any question or matter you would like to discuss or clarify with us, or

Should you like to receive further Information about our services and fees,…

Our multilingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your application.

You may call or email us, and we will be happy to assist you in a fast and efficient manner.

Contact us today for an initial complimentary consultation and find out how we can help you achieve your investment goals!

Check all further and related information on our website

Central Office | Dublin, Ireland

Office 1 Sobo,

Southbound Platform Pearse Street Dart Station,

Dublin 2, D02PP40

Phone: +353 19 069 498

Email: enquiries@atrium-associates.com

London Office | England

SVS House,

Oliver Grove,

London, SE25 6EJ

Phone: +44 203 769 2963

Email: enquiries.uk@atrium-associates.com