Skip to main content
Limited PartnershipUI/UX Design Studio

Ontario Limited Partnership (LP) in Canada — UI/UX Design Studio Formation Guide

Focus on jurisdictions with strong IP laws and favorable tax treatments for digital services. Consider Estonia for 0% corporate tax on retained profits if you plan to reinvest in agency growth, or a US LLC for seamless invoicing with North American tech clients.

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 UI/UX Design Studio 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

Detailed cost calculator →

Why Ontario Limited Partnership (LP) for UI/UX Design Studio?

A business model focused on providing user interface and user experience design services to clients globally. Often operates remotely, requiring easy cross-border invoicing, intellectual property protection, and low administrative overhead.

Ideal for

  • Freelance designers scaling into agencies
  • Remote-first design teams
  • Digital product creators

Challenges to watch

  • Managing cash flow with international clients
  • Navigating withholding taxes on digital services
  • Protecting design IP across borders

Key decision criteria

  • Access to global payment gateways like Stripe or PayPal
  • Clear intellectual property assignment laws
  • Corporate tax rates on service income
  • Ease of hiring international contractors

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.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $150,000 revenue)

Gross Revenue$150,000
Corporate Tax-$0
Formation Cost-$155
Annual Fee-$0
Net Profit$149,845

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 UI/UX Design Studio

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

StripePayPalSquareHelcimMoneris

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

1

Choose a unique business name and obtain a NUANS Name Search Report (valid for 90 days).

2

Draft and sign the Limited Partnership Agreement (LPA) outlining partner roles, liability, and profit distribution.

3

Secure an Ontario registered office address, which is legally required for the registration.

4

File Declaration Form 3 under the Limited Partnerships Act with the Ontario Business Registry.

5

Pay the CAD 210 provincial registration fee to the Ontario government.

6

Receive the 9-digit Ontario Business Identification Number (BIN) and official registration documents.

7

Apply for a Canadian Business Number (BN) with the CRA if required for tax, payroll, or import/export purposes.

8

Open a business bank account using fintech platforms like Wise Business or Airwallex to manage global payments.

UI/UX Design Studio FAQ

Do I need a US company to work with US clients?

Not necessarily, but a US LLC can make invoicing and receiving payments via ACH much easier, which US clients often prefer.

How does Estonia's e-Residency benefit a design studio?

It allows you to manage a borderless EU company entirely online, with 0% tax on reinvested profits, making it perfect for scaling an agency.

Ready to form your Ontario Limited Partnership (LP)?

Trusted formation partners are coming soon.

Coming soon

Related guides