UK LLP Legislation
Through the UK LLP Act 2000 partnerships can be structured to limit the liability of their partners and in so doing have become highly favored and utilized. Merging the concept of the partnership and limited company to create Limited Liability Partnership resulted in a hybrid entity capable of providing its partners with the simplicity of a partnership arrangement and limiting liability to the capital contributed by each member.
Use of the UK LLP was initially popular among lawyers, accountants and other professional firms but today has extended into the international business area for trading and investment.
UK LLP Incorporation
UK LLP incorporation can only be undertaken by two or more persons by subscribing their names to the document used for LLP incorporation. An original or certified copy of the LLP incorporation must be submitted to the registrar for approval and registration, along with a statement indicating that the persons wishing to incorporate have complied with UK LLP incorporation requirements. This will be taken care of through our agent services.
You are required to maintain a registered office in the UK and must appoint a UK resident as the registered agent. We provide these UK offshore services.
UK LLP Formation Structure
- No provisions have been made to regulate shares (no shares for LLPs), minimum capital and capital contributions
- No capital duty is imposed on capital invested or increased during the UK company formation process
- UK company incorporation and maintenance fees are lower than those of other EU states
- The UK LLP is a body corporate with legal personality separate from its members
- Partnership Agreements are not available to the general public
UK LLP Shares
- The UK LLP does not have share capital
- The members of a UK LLP contribute capital towards the business. Member liability is typically assessed based on the amount of every member’s contribution or, as may have been agreed by consensus
UK LLP Members, Directors and Officers
- Every UK LLP must have at least two members natural or legal persons may be members of a UK LLP****
- Membership in a UK LLP may be terminated according to the terms of an established agreement or by notifying the other members if no agreement for cessation of membership exists Members may be of any nationality and residents of any country
Meetings of Members of UK LLP
- There is no requirement for UK LLPs to hold meetings. No requirements exist for recording of minutes of meetings
UK LLP Taxation & Fees
- The UK LLP is not subject to corporation tax
- Members of UK LLP’s must pay income tax which is levied on profits generated from business within the UK
- A UK limited liability partnership may fully free itself from corporation and income tax by ensuring that two members are offshore companies, that the LLP is managed and controlled outside the UK and that directors and members resident outside the UK
- Tax on personal income becomes payable by a non-resident of the UK if that member’s income is derived from profits earned in the UK
- To help further reduce tax liability, a UK limited liability partnership may take full advantage of a the double tax treaties which exist between the UK and other countries
UK LLP Books and Records
In a Partnership, tax returns must be submitted only if profits accumulated by a non-resident of the UK are derived from within the UK A UK LLP is required to submit financial statements to the Companies House for both domestic and offshore business activities
UK Limited Liability Partnerships May
- Have professional contact with local licensed offshore service providers, lawyers, accountants, investment advisors etc.
- Hold meetings of shareholders and directors within or outside the United Kingdom.
The name of a UK limited company must end with a word, phrase or abbreviation which indicates Limited Liability Partnership, for example, ‘Limited Liability Partnership’ or ‘LLP’.
Approval is needed from the Secretary of State before using any UK LLP name that may suggest association with ‘Her Majesty’s Government,’ ‘Her Majesty’s Government in Northern Ireland’, a ‘local authority’ or ‘public authority’, or any ‘part of the Scottish administration’.
The use of any UK LLP name containing a word or expression deemed to be sensitive must first be authorized by the Secretary of State.
You do not have to come to the UK to register your LLP in what is one of the best places to incorporate. With your instructions, we will do it all for you.
Incorporate in UK! Incorporate Your Wealth!
The delivery time required for the UK ltd. company documents vary depending on their final destination. FedEx will deliver to the US in two working days and Australia, four working days.