Scotland - LP/Other jurisdictions
Scotland is part of the Kingdom of Great Britain, one of the leading financial and business centers of the world, and significant jurisdiction for international tax planning.
The United Kingdom is known as a standard tax jurisdiction, therefore does not carry any signs of a tax haven. At the same time, state legislation provides for the possibility of registering and using companies with a zero tax rate - Limited Partnership (LP).
LP is a partnership created by at least two founders ; is registered with the Register of Enterprises of Scotland on the presentation of certain forms (form LP 5). The registration procedure is completed by issuing a registration certificate (Certificate of Incorporation). At the same time, all other company documents are executed - general powers of attorney, letters of compensation, etc.
Scottish LP partnerships with foreign founders who do not conduct commercial activities in the UK territories are not subject to taxation here. According to the tax legislation, LP is not regarded in this country as a separate taxable subject, and taxes from LP received — in proportions according to their interests in LP — must be paid by its founders (“Partners”) at the place of its residence. ;
For example, the Scottish partnership LP, having as founders one Panamanian company and one BVI company and receiving its income only outside the UK, will not be taxed in this country is tax deductible. Taxes, if stipulated by the legislation of a particular country, will be paid by the founders in the countries of their registration. Considering that the tax in BVI and Panama is 0%, the total taxation of the Scottish LP partnership will also be 0% in the end.
Thus, the Scottish LP partnership with a legally correct corporate structure and nominal founders from tax-free jurisdictions can be a tool with a zero tax rate.
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Basic information about jurisdiction
Area – 78.772 sq. кm
Population – 5.100.000
Government – part of Great Britain
Capital – Edinburgh
Official language – english
Official currency – english pound (GBP)
Time zone – GMT +/– 0 -
Company type
Limited Partnership (LP) -
Directors of the company
The country's law provides that LP is managed by its general partner (“General Partner”), who can also serve as a director. -
Shareholders of the company
Quantity: at least two
Status: natural or legal persons
Residents: residents of any country
Information about founders: only in the register of enterprises
Nominee founders: allowed -
Secretary Company
There are no requirements for the position of secretary. -
Authorized capital of the company
Standard declared capital - 100.000 GBP.
Minimum paid-in capital – 2 GBP. -
Company name
The name should end with the abbreviation '' LP ''. Registration of names containing the words "Bank", "Insurance", "Trust", etc., is allowed only after obtaining the appropriate licenses. -
Information about the real owner of the company
Information about the real owner is submitted only to the registered agent and is confidential. -
Annual Return
An annual report is submitted every 12 months after registration. -
Financial Statement
Requirements for the submission of a financial statement (Financial Statement) to the business register are not made. However, this does not exempt the company from complying with the legislative requirement to compile and store financial statements. The tax return (Form SA 800) to UK Inland Revenue is submitted annually. -
Taxation
If the founders of LP are not residents of the UK and the company does not receive income in the UK, the taxation of LP companies is 0%. -
Double tax treaties
Since LP companies are not taxpayers in the UK, they are not subject to the interstate treaties concluded by the UK. -
The term of registration of a new company
12-15 business days; The term of receipt of the full package of documents is 6-7 weeks. -
Acceptance of third-party companies for service FIVECONSULT
Only in coordination with the previous serving agent in the UK. -
A set of constituent documents of the company
1) registration certificate (Certificate of Incorporation);2) statute / articles of association (General Operating Provisions);3) Minutes of the first meeting of founders on the appointment of officers of the company;4) general powers of attorney (General Power of Attorney), signed by nominee directors - with the purchase of the company are filled in with a specific name;5) nominal service agreement ( Agreement for the management of a company by nominee officers and indemnification of the nominees;6) Interest Ownership Certificates signed by nominees; -
"Ready-made" companies
Buying ready-made companies is possible. -
FIVECONSULT comment:
Scottish LP is an ideal solution for those entrepreneurs who prefer to work with a company registered in the EU, but at the same time have a completely tax-free instrument at their disposal. The profit of LP or its property can be fully reflected in the company's annual reports without any tax charges.When comparing the English Limited Liability Partnership and the Scottish Limited Partnership, no significant differences were found, except for one - the Scottish LP - less commonly used tool.