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United Kingdom Limited Liability Partnerships

UK LLP

Synopsis

UK LLP Company SetupThe United Kingdom ("UK") comprises England, Scotland, Northern Ireland and Wales and is one of the member states of the European Union. It has an area of some 244,100 square kilometers (94,250 sq. miles) with an estimated population in excess of 57 million. London is one of the world's leading centres for banking, insurance and other financial services; lying between New York and Tokyo it is the third leg of the world's capital markets. Not the least of its attractions is that it is a politically stable English speaking country.

The UK is strategically located off the Northwest coast of continental Europe and has excellent communications; it has three major international airports in Heathrow, Gatwick and Manchester with extensive worldwide connections. The UK has been physically joined to mainland Europe by the opening of the channel rail tunnel link which boasts frequent train services for passengers and cars to Paris and Brussels.

The UK has signed double taxation treaties with 100 countries and thus enjoys the most extensive double taxation treaty network in the world.

Despite the fact that the UK is by no means a low tax country, UK companies can be used effectively and advantageously in a tax planning structure. One of the major benefits of utilising UK companies flows from the very fact that the UK is not a tax haven so UK based tax planning structures would not generally attract the same level of attention of those based on a pure tax haven company.

The UK Limited Liability Partnerships (LLP)

A UK LLP has the following characteristics:

Members: Two natural or legal persons can form a UK LLP. However members are not required to enter into formal partnership agreement. There is no minimum capital requirement. Details of the members appear on the public file and register of members must be kept at the registered office address of the company in UK.

At least two designated members of LLP will manage the affairs of the LLP.

Officers: There is no requirement to appoint a company secretary but the duties of the company secretary remains. Directors of the company can serve as the officers.

Restriction on Name & Activity: Names must end with LLP. It may be in any language but stated in Latin alphabets. Words like British, UK, National, International, European etc. require special approval.

Special approvals & licenses are required to undertake business of banking, insurance, assurance, reinsurance, fund management, investment funds, mutual fund etc.

Local Requirement: As a matter of local company law the company must maintain a registered office in England, Wales or Scotland. We would generally provide these services as part of the domiciliary service fee.

Timescale: Incorporation can be achieved within 2 to 4 days. Apostile may take additional days.

Annual Reporting: An annual return and annual financial statements have to be filed with companies house.

Taxation: Income & gains of LLP’s are generally taxed at the member level only and LLP is not taxed. A UK LLP having non-UK resident as members and does not have UK source income, will not be liable to tax in UK.

VAT will be applicable on goods sold in & services provided in UK.

Secrecy: Information on members / directors / officers are on public record.

Company Renewal: Renewal of company, to be paid on anniversary date of incorporation. Failure to do so results in penalties and could result in the striking-off of the company from the registry.
Latest valid passport copy and recent utility bill for address proof of shareholder/director are required to be submitted at every renewal as a part of enhanced due diligence.

Documents Required:
KYC Documents for individual Director/Shareholder

  • Passport copy
  • Proof of address (dated less than 3 months)
  • Bank reference (dated less than 3 months with satisfactory record clearly mentioned and also the time period the client has been dealing with the bank: minimum of 2 yrs)
  • Detailed CV
  • Professional reference

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.