Partnership Registration
In business registration terminology, a major vast of people imply General Partnership when they use the term “partnership”. However, in business world, another form of partnership exists, which is called Limited Partnership. In short, a general partnership applicable when both partners have administrative, management and operation control on the business. On the other hand, a when the partnership business is operated, administered and managed by only the single partner and the other partner has no administrative, management or operational control (except contributing capital only), a limited partnership comes into place.
General Partnership
Speed: Electronic process, can be ready in 2 hours (varies with province) Procedure: Do not require physically signed papers
Characteristics:
1. Most common form of partnership
2. All partners have control in management
3. Liabilities are distrubuted among all partners
4. Partnership agreement required: before or after registration
Limited Partnership (LP)
Speed: Manual process, takes around 10 days in express queue Procedure: Requires physically signed papers (by post)
Characteristics:
1. Normally when one partner is out of Canada
2. Only the "general partner" has control in management
3. Liabilities goes mainly to single general partner
4. Partnership agreement required.
Limited Liability Partnership (LLP)
Speed: Manual process, takes around 10 days in express queue Procedure: Requires physically signed papers (by post)
Characteristics:
1. Only for regulated professions (lawyers, CPA, CGA, Engineers, Health & Medical, Artichects etc.)
2. Each partner’s liabilities is limited to the amount they put into the business.