Occupying the Northern half of Great Britain, Scotland is a premier global finance and business hub.
- As the United Kingdom (UK) is known for implementing a standard level of taxation, it doesn’t carry the image of ‘tax haven’.
- However for non-UK residents, there is a type of legal structure that makes it possible for you to pay zero income tax in the UK, the Limited Partnership (LP).
- With a structure similar to Limited Liability Partnership (LLP), a Scottish LP does not pay income tax if its Members are non-residents of the UK.
- Since it does not pay taxes in the UK, it does not have resident status, and is only required to file a Tax Declaration (Self Assessment form SA800) every year.
- Every Scottish LP must keep appropriate accounting records, and prepare a Financial Statement annually.
- An LLP is allowed to engage in activities outside of the UK.
- A Scottish LP is a privately owned Limited Partnership, founded by 2 or more persons or corporations. The owners of an LP are referred to as Partners or Members.
- A main feature of LP is that, as long as the Members do not take part in the management of the LP, the liability of each of the Members is capped at the amount of the capital they contributed to the LP. In this sense, they are protected just like shareholders in a Private Limited Company.
- LPs are not treated as separate taxable entities by Her Majesty Revenue & Customs (HRMC).
- LP that does not conduct any commercial operations in the UK; does not derive any income from UK sources, and are managed by Members who are not UK residents, are exempt from UK taxes.
- Each Partner who is a UK tax resident is directly assessed for their income from the LP.
- Each Partner who is not a UK tax resident will only need to pay UK tax, if the LP engages in local trade within the UK, and an income is derived from such local profit.
- There is no minimum capital requirement to form an LP.
- Minimum just one General Partner and one Limited Partner (both can be either natural or legal people, with no nationality or residency restrictions).
- There are no restrictions on forms or places of Partners meeting.
For Each General Partner, Limited Partner & Ultimate Beneficial Owner:
- Notarised / Certified True Copy of Passport
- Notarised / Certified True Copy of Driving License or National ID
- Notarised / Certified True Copy of Proof of Address (must be less than 90 days old)
- Bank or Professional Reference Letter
If there are Corporate Partners, the following documents must be provided:
- Certificate of Incorporation
- Memorandum of Association
- Articles of Association
- Articles of Incorporation
- Register of Directors & Shareholding
We in Offshore Tech & Intermediary Services will also prepare the necessary company formation documents including the Memorandum of Association, Articles of association, Letter of appointment of director(s) and secretary.
The prescribed time frame for the formation of Limited Partnership in Scotland is approximately 5 to 7 working days.
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