The United Kingdom is one of the leading financial and business centres of the world. It is a significant jurisdiction for international tax planning. This country is known worldwide as a jurisdiction with a standard level of taxation. However, UK legislation provides the opportunity for incorporating and operating companies with a zero rate of tax by means of the Limited Liability Partnerships (LLP).
- An English LLP with foreign members, which does not carry on a business in the UK and derives no income on UK territory, is not liable to tax in the UK. According to the tax laws of the Great Britain, a LLP is not considered as a separate subject of taxation. The founders should pay taxes from the profits received by the LLP in their place of residence in proportions according to their share of interests belonging to them in the LLP.
- As an example, an English LLP which has as members one Belize company and one BVI, which receives the income only outside of Great Britain, will not be assessed for tax. Taxes will be paid by the members in their country of their residence if it is stipulated by the legislation of that particular country.
- The favourable tax regime of LLP companies does not remove the requirements for filing of financial statements. Every LLP is obligated to file financial statements with Companies House each year, and the relevant Partnership Tax return must be filed annually with HMRC (Her Majesty Revenue & Customs).
UK Limited Liability Partnership Services
|Company type||Limited Liability Partnership (LLP)|
|Directors/Officers||United Kingdom LLP companies require a minimum of 2 Members, who may be natural persons or corporate bodies from any legal jurisdiction. There is no statutory requirement for a Company Secretary to be appointed.
Each United Kingdom LLP company must file a Register of its Members with the Companies House of England and Wales.
|Shareholders||The legislation on LLP does not consider status of shareholders. The capital of the company is divided between its Members.|
|Secretary||There is no statutory requirement for a Company Secretary to be appointed.|
|Authorised share capital||Standard authorised capital = GBP 300.
There is no statutory requirement for capital to be fully or partly paid on incorporation.
|Company Names||The name of a United Kingdom LLP company must end with the words Limited Liability Partnership, or the suffix”LLP“.
Company names containing restricted words such as “Bank“, “Insurance“, “Trust“, “Assurance“, “Building Society“, “England“, “British“, “European“, “Irish“, “National“, etc. will not be permitted unless an appropriate national operating licence or special permit has been obtained by the company. Also the words “International“, “Holding“, “Group” are subject to individual acceptance by Companies House.
|Beneficial Ownership information||Information with regard to ultimate beneficial ownership must be disclosed to the Registered Agent of the company and is held by the agent on a confidential basis.|
|Filing of Annual Return||An Annual Return must be submitted every 12 months after the date of registration.|
|Filing of Financial Statements||A Financial Statements must be submitted every year to the Companies House; relevant Partnership Tax Return – to the HMRC (Her Majesty Revenue & Customs).|
|Corporate Taxation||If the Members of the LLP are non-residents in the UK and the LLP does not derive any income within the UK, the LLP is exempt from UK corporate tax.|
|Tax Treaties||LLP companies which have no business activities in the UK; do not derive any income from the UK sources, and are managed and controlled by Members who are not UK residents, are not regarded as resident for tax purposes in the UK and therefore are not entitled to take advantage of international Double Tax treaties concluded by the UK with other countries.|
|Timeframe for incorporation||2/3 working days. A complete set of company documents can be delivered in 4/5 DAYS.|
|Takeover of management & secretarial services for an existing United Kingdom LLP company||Possible, following verification of Beneficial Ownership and agreement with and discharge of liabilities to previous corporate service provider in the UK.|
|Price of United Kingdom LLP company||£695 including incorporation costs, full domiciliary (Registered Agent/Office) costs, set of documents AND bank application (NOT IN UK) When bought in conjunction with Overseas partner company/companies.
WITH FULL OVERSEAS NOMINEES: £995
If separate: £995 NO NOMINEES OR £1495 WITH FULL OVERSEAS NOMINEES
|Cost of annual renewal services||£495 per year, NO NOMINEES not including annual Government Duty, or accountants services (normally between £450 and £650 pa).
£895 WITH RENEWAL OF NOMINEES.
INTERNATIONAL OVERSEAS SERVICES has the following comments:
- An English LLP is the ideal solution for those who prefer to operate with an EU-incorporated entity but to have at their disposal a fully tax-exempt vehicle at the same time.
- Given the above-stated advantages, English LLP companies are very popular tools for conducting international business.
- In the UK there are certain obligations, including submitting of financial statements, which must be fulfilled by every type of company including a LLP. For late delivery of financial statements, Companies House imposes considerable penalties, and criminal liability is considered under the law.
- The favourable tax regime of a LLP is based on its “pass-through” status in that all profit received by the LLP is considered to be transferred to its members. Accordingly, if the members are resident in a taxpaying jurisdiction, they will be obliged to pay tax in their country of residence proportionally to their share of participation in the LLP company.
Contact Us for Further Information
Please telephone 0870 115 1156, 01924 479130 or 00350 200 77779 or send us a request by email for further details and a confidential chat.