Ideal solution for any business operating outside of the UK as it enables a real UK presence with all the benefits of a UK legal company structure including VAT and UK bank accounts, but offers a tax effective strategy for managing profits.
A Limited Liability Partnership, LLP, is a type of business entity registered in the UK. Like a Private Limited company (LTD) it is considered as a corporate body with a separate legal entity. In addition, the liability of its members is limited to their contributions only.
The primary difference between an LLP and an LTD is that a UK LLP can operate as “Fiscally Transparent”. This means that any taxes on profits are levied on the members of the Partnership and not on the Partnership itself. The rate of tax levied on the members of the partnership is dependent upon each member’s tax residency. This can become a significant advantage if the members of the partnership are tax resident in a low or nil tax jurisdiction as profits can be redistributed tax efficiently.
Structure of an LLP
Limited Liability Partnerships do not have directors and shareholders, they only have partners. Each partner can be given limited liability and can be protected from responsibility or liability for another partner’s misconduct or negligence. All partners have the right to manage the LLP and at least 1 partner must be designated as the Nominated Partner.
In addition, an LLP may open a UK bank account and apply for a VAT number.
The members of a UK LLP do not have to reside in the UK. In many cases a corporate body residing in an offshore jurisdiction will act as the member. This enables the beneficial ownership of the LLP in the UK to retain a high degree of anonymity as well as provide other tax advantages.
Each member can be setup as a Seychelles LTD company, each with a single director and shareholder. Each Seychelles Company can have its own bank account in an offshore jurisdiction such as Cyprus and the director may have direct access online, via cards and in person to the account.
The LLP can choose to receive its income directly into either member’s offshore account, but additionally it may wish to setup a bank account in the UK.
Commonly an LLP business structure is used by those who conduct a regulated activity or intend to do so, as it can apply for FSA approval or work within an FSA approved Principal to conduct regulated activities in the UK.
In summary, an LLP setup with 2 offshore members provides a high level of flexibility, anonymity and efficiency.
more information on how to form an
LLP using our online services, please
- The LLP requires at least 2 partners. These may be individuals or corporate bodies located in any jurisdiction.
We will require identification documentation for each member
Where this is an individual:
Full Name & Address of each Member
Photo ID and Proof of Address for each member
Where this is a Corporate body:
ID of the beneficial owner of the Corporate body
- The LLP will require a registered address in the UK
- The name of the LLP you would like to incorporate
- Specification of whether all or some of the members are to be designed members
What we provide
- Hard copy Certificate of Incorporation
- The Partnership Agreement after your LLP is formed
- Online PDF versions of company documents