Canada Partnership vs Ltd
Legal Entity Comparison
Time of Update: 2026-03-31
Partnership is a common type of legal entity in Canada, with the full name being Partnership. It belongs to a form of joint ownership, where it is collectively owned and operated by two or more individuals or companies. Unlike a limited liability company, Partnership does not have limited liability, which means partners have unlimited responsibility for the company's debts and obligations. Partnerships typically do not publicly participate in the market; instead, the company's operational policies and decisions are determined through negotiations among the partners. Unlike corporations, a Partnership has no requirements for shareholders or directors; partners are free to choose their collaborators and are not required to appoint a legal representative or local resident as a director. Additionally, a Partnership does not need a company secretary, and there are no minimum capital requirements or capital verification. However, specific operational rules and responsibility allocations need to be clearly defined in the partnership agreement. Therefore, Partnership is not a type of limited liability company, and the specific situation needs to be determined based on the partnership agreement.
Canada Legal Entity Comparison
Canada Legal Entity Comparison
Basic Information
Partnership
Ltd
Ownership:
Consolidated Ownership
Ownership:
Consolidated Ownership
Limited Liability:
See Memo
Limited Liability:
Positive
Publicly Participates In Capital Market:
Negative
Publicly Participates In Capital Market:
Negative
Shareholder / Director / Secretary Requirements
Partnership
Ltd
Requirements For Shareholders:
No requirements
Requirements For Shareholders:
Minimum one shareholder
Requirements For Directors ::
No requirements
Requirements For Directors ::
Minimum one director
Legal Representative Not Mandatory:
Positive
Legal Representative Not Mandatory:
Positive
Local Directors Not Mandatory:
Positive
Local Directors Not Mandatory:
See Memo
Local Secretaries Not Mandatory:
Positive
Local Secretaries Not Mandatory:
Positive
Registered Capital Requirement
Partnership
Ltd
Minimum Registered Capital Requirement:
No minimum registered capital requirement.
Minimum Registered Capital Requirement:
No minimum registered capital requirement.
Capital Injection Not Required:
Positive
Capital Injection Not Required:
Positive
Capital Injection Requirement:
N/A
Capital Injection Requirement:
N/A
Memo
Partnership
Ltd
Memo:
It's not a limited liability company, specific requirements need to be seen in the partnership agreement.
Memo:
At least 25% of the directors must be residents of Canada. If there are fewer than four directors, there is no requirement for a local resident to serve as a nominee director of the company.
