UK LLP Company Formation
United Kingdom Limited Liability Partnership
Overview of an United Kingdom (UK) Limited Liability Partnership (LLP)
A UK Limited Liability Partnership is a perfect solution for international foreign companies and individuals looking to gain access to European markets without having to pay local UK taxes.
What is a Limited Liability Partnership?
In general, a Limited Liability Partnership is a hybrid form of business entity that combines elements of a limited company and an ordinary partnership that offers limited liability, organizational flexibility, and tax transparency to its members. A LLP agreement is not required, though highly recommended and may be created by its members according to their own specific needs.
LLP Companies Act UK
The Limited Liability Act 2000 governs the UK LLP; the legislation formed to give partnerships increased organizational flexibility, making it a popular formation option for international trade and investment houses.
The UK LLP has a pass-through tax structure that shifts the tax burden of the LLP to its members, enabling the LLP to bypass UK taxation requirements. An LLP is not seen as a separate entity for taxation purposes, which falls upon its members who are only required to pay taxes on income sourced from the UK. Though the members are obliged to pay taxes on all foreign profits in their home country of residence, they are not subject to any UK tax.
A Limited Liability Partnership UK gives companies many advantages including a flexible structure, limited liability for its members, and minimal corporate formation requirements. There are no company structure requirements for the management of an LLP, nor are there provisions for company meetings, directors, secretary, or capital, all of which makes the UK LLP a highly desirable company formation vehicle.
Key Corporate Features of a UK Limited Partnership Company
|UK LLP||Corporate Details|
|Type of Entity||Limited Liability Partnership (LLP)|
|Type of Law||English Common Law|
|Governed by||Limited Liability Act 2000The Income and Corporation Taxes Act 1988|
|Registered Office in UK||Yes|
|Shelf company availability||Yes|
|Our time to establish a new company||1 - 2 days|
|Minimum government fees (excluding taxation)||None|
|Access to Double Taxation Treaties||No*|
|Share capital or equivalent|
|Standard currency||GBP, £|
|Minimum paid up||None|
|Bearer shares allowed||No|
|No par value shares allowed||No|
|Minimum number||None required (Members act as Directors)|
|Publicly accessible records||N/A|
|Location of meetings||N/A|
|Corporate directorship allowed||N/A|
|Publicly accessible records||Yes|
|Corporate shareholder allowed||Yes|
|Location of meetings||Anywhere|
|Local or qualified||No|
|Requirements to prepare||Yes|
|Audit requirements||Yes (small companies are exempt)|
|Requirements to file accounts||Yes|
|Publicly accessible accounts||Yes|
|Recurring Government Costs|
|Minimum Annual Tax / License Fee||None|
|Annual Return Filing Fee||GBP 30 manually, GBP 15 electronically|
|Requirement to file annual return||Yes|
|Migration of domicile permitted||No|
UK Limited Liability Partnerships: Advantages & Top Uses
- The UK is a respected jurisdiction and international financial and trade centre
- Political and economic stability
- No local taxation if business and residence are outside the UK
- Benefits of having access to European markets
- Quick registration process
- Low costs
- Small companies are exempt from being audited
- No capital requirements
- Details of beneficial owners are kept confidential
- Nominee Services are available
- Limited partnership liability of members is limited to the capital contributed
- LLP is legally separate from its members
- LLP is no taxes as a separate entity, members are taxes individually on profits
- Minimum LLP requirements
- Partnership agreement are not required
- Tax is based upon residence and location of commercial activities
- Members may include individuals an corporate entities
- Flexibility of LLP structure
- Formation of an LLP gives confidence to investors and partners and allows for credit to be drawn
- International Trade
- International Professional Services
- International Commercial Activities
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