A Canadian Limited Partnership is one of the individualised corporate solutions offered by Confidus Solutions. Canadian LP company is a flexible legal vehicle, used in number of classical corporate structures. One of the most efficient ways to utilize Canadian LP - is creating a trading company structure, this would allow for tax and cost minimization, while not being considered an offsopre jurisdiction.

Limited partnerships in general
The popularity of limited partnerships is easy to understand in today’s business environment. In many jurisdictions, limited partnership structures are designed to be tax transparent. The general partner is responsible for the management of the company and is the only partner with unlimited liability. Each limited partner’s liability is restricted to his or her capital contribution and any undrawn profit. Partnerships can be formed by verbal or written agreement, although written agreements are always preferable.

The most popular jurisdictions for forming limited partnerships are Scotland (under the Limited Partnership Act 1907) and Canada (under the Partnership Act of each of the country’s provinces: Alberta, British Columbia, New Brunswick, Ontario and Saskatchewan).

Advantages of trading through a Canadian LP
Once the above challenges have been overcome, the ease of trading through a Canadian limited partnership becomes obvious:

A Canadian LP is not subject to corporation tax, because it is not a body corporate for Canadian tax purposes.
The LP itself is not subject to Canadian taxation; partners are instead assessed based on their share of the profits. Therefore, if the partners are not Canadian residents, there is no Canadian source income and no Canadian income tax is payable.
There is no obligation to file an annual financial statement.

If you are setting up, doing business, or dealing with partners from that country in South Africa, it is imperative to understand the basics of corporate culture in this particular area. Business meetings and negotiations often start with both parties having unspoken assumptions and certain expectations of their partners. In-depth knowledge of South African business culture can make all the difference between a successful business meeting and a lost business.


Practical advice on business etiquette in South Africa

Below is our list of pieces of advice to keep in mind when dealing with South African partners:


South Africans are unlikely to do business with people they haven't met personally. It is advisable to have a friend introduce you in order to build successful business relationships. If possible, try to draw the partner's attention to South African business references that you already have in your portfolio.

It is highly recommended that you receive letters of recommendation in case you have done business with mutual contacts of the company or entrepreneur with whom you wish to develop a relationship.

Most of the time, a first business meeting is more about personal contact and getting to know one another than a direct discussion of business issues. The chances that South Africans will do business with you are much higher if they trust you as a person.

Keep in mind that almost everything is closed from mid-December to mid-January, as well as during the Easter and most Jewish holidays. Therefore, do not plan your business trips and meetings on these dates.

Working hours in South Africa are almost the same as in Western countries, including the fact that most of South African companies are closed during weekends. Major exceptions are banks and state office employees, because banks and state authorities are often open in until noon on Saturdays.

You may face quite a challenge to locate a certain address in South Africa. This may happen because of the way in which the address system works. In case you are driving to a meeting with clients/partners, you better leave early to make sure you have some extra time to find your destination address and to park your car safely. We would recommend taking a cab rather than driving yourself.

Remember that acceptable business clothes are suits and ties. Shirts preferably in light colours. If you aren’t wearing a jacket, make sure to put on a long sleeved-shirt. In case you are invited to a dinner at someone’s house, a dinner jacket is normally expected. It is advised for women to put on dresses and skirts instead of pantsuits and the former should not be sleeveless, too tight, or very short, as it is considered a bad taste. Keep in mind that winter in South Africa starts in June and lasts until August, so do not forget to dress something warm in case you are visiting during these months.

Most locals speak English quite well, therefore, it is not required for you to translate documents or materials into any of the African languages.


South Africans are quite friendly and open, meaning they often express emotions openly. It is a quite common situation when your business partner slaps you on the shoulder, shakes your hand tight, or even holds your hand as a gesture of trust and friendship.

It is considered polite to offer small gifts to your partners. If you are invited to a house for dinner, do not forget to bring some gift: a box of chocolate, wine, or something similar – it is considered a good gesture and it shows respect for the hosts.

Always show respect to elders, even in situations when they are not actually a part of the company. Elders are widely respected and usually considered to be extremely wise and experienced; those who disrespect elders openly are often end up being classified as undesirable business partners.

Speaking of table etiquette and cutlery, the knife should always be kept in the right hand and the fork in left — never switch hands and never wave your hands around while holding cutlery. It is also considered a minor insult to leave food uneaten – so it is advised to plan prior to ordering dishes. Smoking is generally accepted, but only after all the guests has finished their food. Never chat or talk with waiters during the meal.

It is generally considered impolite to point your finger at anyone, also the V for victory gesture is considered offensive. Remember not have a dialogue while having hands in your pockets.

The legal structure of your business is among the most important factors that will greatly affect you and your business throughout its existence. Therefore, it is important to carefully weigh all the pros and cons before starting the business, as your choice of business structure will have a major impact on how you run the business, how you pay taxes, and who controls your business. The key is to understand which legal form offers your company the greatest advantages on your way to achieving organizational and personal goals. In general, there are four main factors to consider before the company formation process: limitation of personal liability, taxes, ease of transferability of shares and registration of new owners, and finally – investor expectations.

When setting up a company in Belgium, you have many options to choose from when it comes to the legal form of your company. Different types of business structures in Belgium suit a variety of business needs. Both domestic and foreign investors can choose the legal form that best suits the needs of a particular company. In addition, those who choose to register a company in Belgium can benefit from a relatively quick and straightforward process.

Belgium has a wide range of possible business forms, each with their own advantages and characteristics. While certain business types are more suited to large corporations, other types are being developed to meet the needs of small and medium-sized businesses. In general, small and medium-sized companies can benefit from choosing a simpler legal form, especially if the company does not plan to be listed on the stock exchange. To make the right choice, entrepreneurs should consider the amount of capital they wish to invest in the early stages of the business and the shareholder responsibilities associated with each type of business.

Limited Liability Company (BVBA/SPRL)
This type of structure is one of the most popular legal entities and is generally used for small and medium-sized businesses that are privately owned. Before choosing this type of corporate structure, investors should consider that there are certain aspects that make them less flexible compared to a public company. For example, it is not possible not to issue either convertible bonds or participation certificates, nor is it possible to pay interim dividends. In general, the main advantages of PLLC are as follows:

Only two people required for installation (there is also an exception when only one person is needed);
Owners of the business are only liable for the amount actually contributed;
Relatively low minimum capital.
The required minimum capital is EUR 18,550; it must be paid by the founders of the company, who may be individuals or companies, Belgian citizens or non-citizens, residents or non-residents of the country. Each issued share must be paid up at least 20% before incorporation and the minimum amount is EUR 6,200. If a company has only one founder, at least EUR 12,400 must be paid in. All shares in this company are registered shares and must be entered in the share register. Certain restrictions apply to the transfer of Shares.

Public limited company (NV/SA)
This form of business is usually chosen for larger companies, since the minimum capital is significantly higher than for a limited liability company. It is also advantageous to choose this type of structure for a company that needs a lot of capital, since the company can attract external capital. The minimum capital is at least EUR 61,500 and at incorporation at least 25% of each share must be paid up with a minimum aggregate amount of EUR 61,500.

Unlike PLLC, Public Limited Liability Company shareholders do not play a significant role as at least three directors must be appointed to run the company. If there are only one or two shareholders, it is sufficient to appoint only two directors. According to Belgian company law, when a company is appointed director, a permanent representative must be appointed.

Following documents and other information are required upon incorporation of Public and Private Limited Liability Companies:

Full details of the founders’ identities;
A financial plan for the first two years;
Bank certificate approving the capital;
Founders’ powers of attorney;
Letter of acceptance from the directors;
Passport copies of the of the directors;
Articles of Association;
Act of incorporation;
Minutes of the first general meeting to appoint directors;
Minutes of the first board meeting for certain business decisions;
Registration with the tax administration;
Registration with the trade registry or filing with the commercial court;
Publication in the Official Journal;
Registration with the social security and VAT administrations.
Limited Partnership (SCS/GCV)
Limited Partnerships have two types of partners with different legal regimes. General partners are jointly responsible for the partnership’s liabilities. General partners are also the ones who manage the company. Meanwhile, limited partners are only responsible for the capital they have contributed towards the Limited Partnership. They also do not acquire a trader’s status and are not involved in the management of the business. There is no requirement for a minimum capital to incorporate a Limited Partnership and also less administrative formalities are required. It still remains less common due to the full liability of general partners.

Other types of business structures in Belgium include:

Cooperative with unlimited liability (SCRI/CVOA);
Cooperative with limited liability (SC/SCRL – CV/CVBA);
General Partnership (SNC/VOF);
Sole Proprietorship.

The Panama Foundation is a type of private foundation specifically designed as an asset protection tool. It was introduced in 1995 by the Panamanian government (through the Private Interest Foundation Law) and is based on the principles of the Swiss, Luxembourgish and Liechtenstein family foundations. The most obvious benefit of the Panamanian Private Foundation is that it is a separate legal entity, independently able to exercise its rights, enter into contracts, acquire property, etc.

On the other hand, the difference between an offshore limited liability company and a private foundation is that the latter does not engage in commercial activity and cannot be used for commercial purposes. It is also not to be confused with a corporation, which has owners and members. However, a Panamanian private foundation can engage in any investment activity: real estate, stocks, bonds, patents, equity, shares, etc.