Formation Company & Tax Advisory

Sunday, May 20, 2018

Limited Liabilities Partnership – LLP

The establishment of a company by any Individual and/or Legal Entity which is a "Limited Liability Partnership - LLP", is possible thanks to the Limited Liability Partnerships Act issued in 2000, which has been recently used in United Kingdom. LLPs are ideal Entities to create structures which, although resident in the United Kingdom, have some tax advantages, sometimes in the same companies resident in low-tax jurisdictions. The law that introduced the LLP is specifically aimed at professional associations, accountants, attorneys and/or consultants in general, but does not limit their business in terms of activity, therefore LLPs may be formed for any purpose, i.e. business, commissions and other types, both for big and small transactions.

A careful and specific examination is very important and, through our suggestions, Bright Business Consulting LLP is able to better assess any case studies and the best resulting solutions. Some foreign Laws, such as United States of America and the UK's , have governed the LLP, i.e. a society of people with limited liability which is recognized as a Legal entity.

For its establishment two requirements are essential:

  • A Place of Business or Branch in the United Kingdom.
  • A minimum of two Members which can be both individuals and legal entities of whatever origin, structure and residence.

Unlike LTD or LIMITED, LLP does not need a Director and there is no minimum capital required. The LLPstands for as a commercial alternative mean for all those Individuals forbidden from establishing themselves into their society by the professional authorities they belong to, as well as being a useful mean for each type of business especially for commercial transactions. This company has got the same flexibility of a professional association.

As already said, it is constituted by Members not by Shareholder/s. The Members are generally responsible for the debts of the LLP withinh their contribution. The main purpose of the LLP is to ensure its Members flexible planning, together with tax transparency.

Accounts are mandatory in the LLP, while auditing becomes mandatory over one million GBP.

An LLP is not subjected to the tax system in the United Kingdom when it gets some income coming from a foreign Country. The UK regulations require that LLP be taxed on transparency. This means that profits, losses and gains are taxed on the resident and non-resident Members in relation to the fee established in their agreement -Limited Liability Partnerships Act 2000.

Members will be taxed depending on their profits distributed according to their shares, where they are residents, whether their business is also carried out outside the UK, otherwise the tax will be due within the UK. Members have got therefore the obligation of their tax return where they reside.

A specific Law in force in the UK allows an LLP exercising its business outside the United Kingdom not to require its VAT allocation.

JOIN MAILING LIST

CONTACT DETAILS

Bright Business Consulting LLP
58/60 - Kensington Church Street
LONDON - UK - W8 4DB 

CONTACT US FOR FREE    

fb  linkedin  twitter  

COMPANY PROFILE

Scroll to Top