Ontario Limited Partnership (LP) in Canada — Amazon FBA & E-Commerce Formation Guide
For non-US residents, a US LLC (e.g., Wyoming or Delaware) is highly popular for Amazon FBA because it provides easy access to US payment gateways (Stripe, Mercury) and Amazon US, often with 0% US corporate tax if structured correctly. If selling primarily in Europe, a UK LTD or Estonian OÜ simplifies VAT registration and OSS compliance.
Last verified: June 13, 2026
Corporate Tax
0.0%
State Tax
0.0%
Formation Cost
$155
Annual Fee
$0
Forming a Ontario Limited Partnership (LP) in Canada as a Amazon FBA & E-Commerce means a total tax burden of 0.0% and an official formation cost of $155. There is no minimum capital requirement. Standard formation takes 2-3 business days, or 1 business day expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $320
Ongoing (per year)
≈ $150
Why Ontario Limited Partnership (LP) for Amazon FBA & E-Commerce?
A business model where you sell physical products on Amazon's marketplace, utilizing their Fulfillment by Amazon (FBA) network. Choosing the right jurisdiction is critical for managing inventory taxes, VAT/Sales Tax nexus, and accessing global payment gateways.
Ideal for
- US LLC (Wyoming/Delaware) for the US market
- UK LTD for the European market
- Estonian OÜ for digital nomads
- UAE Free Zone for tax-free scaling
Challenges to watch
- Sales tax and VAT compliance across multiple states/countries
- Strict Amazon seller account verification processes
- Product liability risks requiring corporate shields
- Managing multi-currency cash flows and high conversion fees
Key decision criteria
- Does the jurisdiction support easy Amazon Seller Central registration?
- Can you easily open a business bank account compatible with Amazon disbursements?
- What are the VAT or Sales Tax nexus implications for where your inventory is stored?
- Do you need product liability insurance, and is it available for your entity type?
Ontario Limited Partnership (LP) formation requirements
Minimum capital
None
Standard timeline
2-3 business days
Expedited timeline
1 business day
Local director
Not required
Registered office
Virtual office allowed
Notarization
Not required
There are no residency requirements for the General Partner or Limited Partners. They can be individuals or corporations from anywhere in the world.
Estimated breakdown (based on avg. $150,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 13%. Registration threshold: 30,000 CAD. Non-resident digital service providers must register for and collect GST/HST if their sales to Canadian consumers exceed CAD 30,000 over a 12-month period.
Banking & payments for Amazon FBA & E-Commerce
Opening a traditional bank account (e.g., RBC, TD) for an Ontario LP with only non-resident partners is highly challenging and typically requires an in-person visit. However, non-resident founders can easily open business accounts remotely using fintech platforms like Wise Business, Airwallex, or Loop.
Supported payment gateways
Remote-friendly accounts
Wise Business
Excellent for non-resident LP partners. Offers multi-currency accounts (CAD, USD, EUR, GBP) and can be opened entirely remotely.
Airwallex
Great alternative for global e-commerce and SaaS businesses. Provides local CAD and USD account details with low FX fees.
Loop
A Canadian fintech platform tailored for cross-border businesses, offering multi-currency accounts and corporate cards without monthly fees.
Canada incentives & advantages
SR&ED (Scientific Research and Experimental Development) Program
Up to 35% refundable tax credit on eligible R&D expenditures for Canadian-controlled private corporation (CCPC) partners, or 15% non-refundable for others.
Ontario Limited Partnership (LP) formation steps
Choose a unique business name and obtain a NUANS Name Search Report (valid for 90 days).
Draft and sign the Limited Partnership Agreement (LPA) outlining partner roles, liability, and profit distribution.
Secure an Ontario registered office address, which is legally required for the registration.
File Declaration Form 3 under the Limited Partnerships Act with the Ontario Business Registry.
Pay the CAD 210 provincial registration fee to the Ontario government.
Receive the 9-digit Ontario Business Identification Number (BIN) and official registration documents.
Apply for a Canadian Business Number (BN) with the CRA if required for tax, payroll, or import/export purposes.
Open a business bank account using fintech platforms like Wise Business or Airwallex to manage global payments.
Amazon FBA & E-Commerce FAQ
Can I open a US Amazon FBA account as a non-US resident?
Yes. Forming a US LLC allows you to get an EIN and open a US business bank account, which makes the Amazon Seller Central verification process much smoother and avoids high currency conversion fees.
Do I need to pay US taxes if I sell on Amazon US?
If you are a non-US resident with a single-member LLC and no physical presence (ETBUS) in the US, you may not owe US federal income tax. However, you must still collect and remit Sales Tax in states where you have economic or physical nexus (like storing inventory in an Amazon warehouse).
Which is better for Amazon Europe: UK LTD or US LLC?
A UK LTD is generally better for Amazon Europe as it simplifies obtaining a UK/EU VAT number and EORI number, which are mandatory for importing and storing goods in European fulfillment centers.
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Related guides
Complete Ontario Limited Partnership (LP) guide
Taxes, requirements, banking, compliance
Ontario Limited Partnership (LP) cost calculator
One-time and annual cost breakdown
🇧🇬 Amazon FBA & E-Commerce — Single-Member Limited Liability Company (EOOD)
Tax 10.0% · formation $30
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Tax 15.0% · formation $180
🇨🇾 Amazon FBA & E-Commerce — Company Limited by Guarantee
Tax 15.0% · formation $265
🇨🇾 Amazon FBA & E-Commerce — Sole Proprietorship
Tax 0.0% · formation $100
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