Scotland is a part of the United Kingdom, a leading global financial and business centre and an important jurisdiction for international tax planning. The UK is known internationally as a jurisdiction with a standard level of taxation; hence it has no image of a ‘tax paradise’. At the same time, the UK law provides the possibility to incorporate and use companies with zero tax rate – LP (Limited Partnership).
as UK is now outside the EU (thanks to Brexit), there are no more questions of EU VAT.
About Limited Partnership (LP)
A LP is a partnership of at least two members that is incorporated by filing registration forms (form LP 5) with the Registrar of Companies of Scotland. Accordingly, after incorporation procedures are fulfilled, the Registrar issues a Certificate of Incorporation which does not contain any name of director as the LP is managed by its general partner. Limited Partnership (LP) is a type of partnership regulated by Limited Partnerships Act 1907 and Partnership Act 1890. This structure is often relevant in the case that traditional offshore companies cannot be used for a number of reasons.
A LP consists of 1 (or more) general partners who are liable for all debts and obligations of the partnership and exercise its management, and 1 (or more) limited partners who made a contribution into the partnership’s capital (by means of money or other property with monetary valuation).
About filing accounts
Company’s act 1907 does not indicate among others requirement to file accounts with Companies House for the Scottish Limited Partnership.
There is no information about reporting to Companies House in the act as there is no such requirement. Normally, in the acts we find statements about what is required only (what is not required is not mentioned).
However, it is mentioned in the GOV. website: “You don’t have to send accounts to Companies House unless the general partner is a limited company.” (https://www.gov.uk/set-up-and-run-limited-partnership/partners-responsibilities)
In this context a Limited Company means UK Limited Company.
Please note that Scottish LLP (Limited Liability Partnership) must file the accounts as opposed to Scottish LP (Limited Partnership).
About taxation we read in the Act:2.26 “As an ordinary partnership a limited partnership is tax transparent” (45). This is one of the main attractions for its use in the venture capital industry, and in
property investment (46).Limited Partnerships are tax transparent because each Partner/ Member is liable for taxes and the Partnership itself. The Partners of the Scottish LP are liable to taxation in the jurisdiction where their are incorporated. Some offshore zones can be “tax free” jurisdictions.
usually the LP transfers dividendes on demand to the partners without any tax, the partner is responsible for the payment of his income taxes.
LP incorporation with full set of documents apostilled : 2200 EUR (yearly 500 EUR)
Note 1 : Additional fees if partners must be provided by our services
Note 2 : New anti Money Laundering law requires basic accounting which is provided by the local UK registered agent, a cost between 500 to 1000 EUR of yearly accounting depending on the volume must be added. no tax return, no VAT and so no VAT declarations
US LLC partner company with full set of documents apostilled : 900 EUR (yearly 500 EUR). (not recommended if banking relations are needed, for totally privacy of partners only)
Mail forwarding (needed for some banks) : 500 EUR (mandatory first year only)
EU Bank account or EMI
remote opening : 2000 EUR (mail forwarding needed)