Are you looking for a reputed jurisdiction where you can protect your assets? Look no further than the UK. On the one hand, the country does its best to meet the EU requirements for business transparency and fighting money laundering and financial fraud. However, it does not mean that you will encounter any obstacles: The Limited Partnership set up in the UK is one of the most convenient and profitable legal forms if you intend to own corporate/personal assets, as well as real estate. If you are a non-resident, you can still be an LP partner, and you will only pay taxes on the profits derived within the UK. If you are interested in the jurisdiction, you can read a more detailed article on establishing a Limited Partnership in the United Kingdom on a trusted portal and ask your questions using a live chat during business hours.
Limited Partnership: Basics
An LP is one of the most widespread forms of business in the UK thanks to its convenience. You are required to have at least two partners in the structure, with one of them being a general partner who has the right to manage business activities.
Applicable Laws, Rights, and Obligations
Here are the main regulations currently applicable to UK Limited Partnerships:
- At least 2 partners are required. They can reside in any country as an individual or a legal entity.
- You will need to appoint a general partner who will manage business affairs.
- The liability of partners is limited to their contribution to the partnership.
- You can rent a registered office, but you are under no obligation to do so in the UK.
- As regards the amount of the authorized capital, no minimum threshold is set.
- Partners will only need to pay taxes on the income generated in the country of incorporation.
- You are required to keep business records, but you will not need to submit them to any authorities.
- The data of partners is protected and is not provided to the registrar.
However, the UK authorities are working on radical amendments to the 1907 law that currently regulates limited partnerships, so changes are on the way. You can click on the link and ask our experts if there is any news on the matter.
New Act
Here are the new rules that are expected to be applicable to UK Limited Partnerships:
- Partners will be required to have a postal address and a registered office.
- LPs may be set up before they are registered with Companies House.
- A person who has been removed from office as a UK company director will not have the right to appoint a general partner. In addition, the general partner will have to appoint an individual to be a registered official and provide a personal individual contact for each official that is a legal entity.
- Limited Partnerships will need to confirm their presence on an annual basis by submitting a statement to the Companies House.
- The data of partners is shared with Companies House.
- An LP may be required to submit reports to HM Revenue & Customs, but not in all cases. The particular circumstances are yet to be developed by the government.
A UK Limited Partnership that has just been set up is expected to submit its data within 1 year from the date of formation.
Main Features of a UK Limited Partnership
Here are the main characteristics of a UK Limited Partnership:
- You can engage in any lawful business activities, including the provision of services and trade.
- An LP can be quickly set up online.
- Though an LP is not considered a legal entity, it has some features of an ordinary company: an office, a correspondence address, a registration number, and a unique name.
- The number of partners is unlimited, and they can be residents of any country.
- The cost of LP setup and maintenance is quite affordable.
- If 100% of profits are generated outside the UK and partners have no tax liabilities in the country, no taxes whatsoever will be payable in the UK.
- You will be able to receive your VAT number and EORI. If you want to get a VAT number, you will have to prove that the partnership’s turnover in cash exceeds 85,000 pounds sterling. As for EORI, you can obtain it if you set up an account with a UK bank or have a physical office in the country.
- Finally, a UK Limited Partnership will give you an opportunity to carry out business activities in the EU and other states.
Sounds interesting? Do not hesitate to click on the above link to ask questions!
How to Establish an LP
It will not take too long to set up a Limited Partnership in the UK: you will be able to complete the task in a matter of several days remotely on the condition that you provide a complete package of documents that fulfill certain requirements.
You will need to file registration forms to the Register of Companies (Companies House). Here is the procedure for setting up a UK Limited Partnership:
- You will need to suggest a name for your partnership and check whether it is unique.
- Then you submit the documents, and they are thoroughly checked by relevant authorities.
- You pay all applicable fees.
- The limited partnership is entered into the Register.
- The original corporate documents and their copies certified by a notary are prepared.
If you don’t have a corporate bank account yet, you will have to open one for your partnership to operate. We recommend opening a bank account in a safe state or a protected offshore zone if you are a non-resident.
Keep in mind that if you are a foreign partner in the United Kingdom and you receive financial services there, you automatically become a UK fiscal resident and will have to pay income taxes on the amounts charged to your personal account if they exceed 2,000 pounds sterling a year.
Interested in the UK Limited Partnership? Please click on the above link to read more details or contact experts for a free conversation. Discuss your business needs and make the right decision!
