About that Country :
The United Kingdom of Great Britain and Northern Ireland, is a sovereign state in Europe. It shares a land border with The Republic of Ireland, apart from this border, the UK is surrounded by the Atlantic Ocean. With its proximity to the European Union and its double taxation treaties, UK companies have an edge in the world of commercial and financial business.
The UK is a well establish as one of the popular Commercial and Financial Centres of the World and being a signatory to over 100 different treaties, it has many trade advantages.
A UK LLP’s structure shifts the tax burden of the LLP to its members. The UK LLP is not regarded as a separate entity for the purpose of taxation, members are only required to pay taxes on income sources from the UK. Foreign profits are subject to taxation in the members’ home country of residence and are then not subject to any UK Tax.
Why form an LLP in the UK?
UK LLP Registration Requirements :
To form a LLP in the UK, proposed Members (Individuals or Companies) must submit the proposed name of the LLP. The names, address and details of each member need to be submitted, as well as the names and details of all beneficial owners (Confidential) as well.
A compliance statement confirming that the Partnership is being established to conduct lawful activities and with the intention of creating a profit.
It is recommended to have a Company or Partnership agreement, though it is not required. An agreement outlining the rules regulating the LLP and detailing the powers, is beneficial if the default provisions in are not aligned with the interest of the LLP.
Government Fees and Taxation :
Government Fees :
Minimum Government Formation Charge
Recurring Minimum Annual Company License Fee
Annual Return Filing Fee
£15 GBP Electronically
£30 GBP Manually,
Corporate Tax :
No - Passed on as Income for Members
Access to Double Taxation Treaties
There are no local UK Taxes to pay if the LLP does not conduct business within the UK and the Members are not liable to pay UK Taxes either if they are not residents of the UK.
Each Member of the LLP is liable for their own income tax, which is based on their share of the profits. Members pay taxes within the country of their residence. Only earnings from within the UK are taxable.
All UK LLPs which make more than £81,000 GBP which is derived from local earnings must register for UK VAT.
There is also a requirement to file an annual return and account to the UK Inland Revenue every year, even if a company has not traded. A summary of current Members also needs to be submitted together with the filing fee.