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Scotland (UK) Limited Partnership
  • 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. However, the Scottish law provides the opportunity for registration and operation of companies with a zero tax rate by means of a Limited Partnership (L.P.).
  • An L.P. is a partnership of at least two members that is registered by filing registration forms (form LP 5) with the Registrar of Companies of Scotland.
  • A Scottish L.P. with foreign members, which does not carry on a business in the UK and derives no income on UK territory, is not liable to tax in the UK. According to the tax laws of Great Britain, the L.P. is not considered as a separate subject of taxation. The founders ("Partners") should pay taxes from the profits received by the L.P. company in their place of residence in proportions according to their share of interests belonging to them in the L.P.
  • As an example, a Scottish L.P. which has as partners one Belize company and one BVI company, which receives the income only outside Great Britain, will not be assessed to tax. Taxes will be paid by the members in their country of residence if it is stipulated by the legislation of that particular country.
  • The favourable tax regime of L.P. companies does not remove the requirements for preparing Financial Statements. Every L.P. must prepare and keep financial statements, and the relevant Partnership Tax return must be filed annually with HMRC (Her Majesty Revenue & Customs).

GENERAL INFORMATIONTotal area - 78,772 sq km
Population - 5,100,000
Location - click here to see the map of offshore jurisdictions
Political status - part of the Great Britain
Capital - Edinburgh
Official language - English
Official currency - British Pound (GBP)
Time zone - GMT -/+ 0
Company typeLimited Partnership (L.P.)
Directors/OfficersScottish L.P. companies require a minimum of 2 Partners, who may be natural persons or corporate bodies from any legal jurisdiction.
Each Scottish L.P. company must file a register of its Partners with the Register of Enterprises of Scotland.
ShareholdersThe capital of the company is divided between its Partners.
SecretaryThere is no statutory requirement for a Company Secretary to be appointed.
Authorised share capital Standard authorised capital = GBP 2,000.
Company Names The name of a Scottish L.P. company must end with the words Limited Partnership or the suffix "L.P.".
Company names containing restricted words such as "Bank", "Insurance", "Trust", "Assurance", "Building Society", "England", "British", "European", "Irish", "National", etc. will not be permitted unless an appropriate national operating licence or special permit has been obtained by the company. Also the words "International", "Holding", "Group" are subject to individual acceptance by Companies House.
Beneficial Ownership information Information with regard to ultimate beneficial ownership must be disclosed to the Registered Agent of the company and is held by the agent on a confidential basis.
Filing of Annual ReturnThere is no requirement to file an Annual Return.
Filing of Financial StatementsEvery Scottish L.P. must keep appropriate accounting records, and prepare a Financial Statements annually. Relevant Tax Declaration (form SA 800) must be submitted to Her Majesty Revenue & Customs annually.
Corporate TaxationL.P. companies that do not carry on any commercial operations in UK; do not derive any income from UK sources, and are managed and controlled by Members who are not UK residents, are exempt from U.K. corporate tax.
Tax TreatiesL.P. companies that do not carry on any commercial operations in UK; do not derive any income from UK sources, and are managed and controlled by Members who are not UK residents, are not regarded as resident for tax purposes in UK, and therefore are not entitled to take advantage of international Double Tax treaties concluded by the UK with other countries.
Timeframe for incorporation 10/12 working days. A complete set of company documents can be delivered in 6/7 weeks.
Takeover of management & secretarial services for an existing Scotland L.P. companyPossible, following verification of Beneficial Ownership and agreement with and discharge of liabilities to previous corporate service provider in UK.
Description of incorporation documentsClick here for itemised description of company documents.
"Ready-made"("Shelf") companiesToday we have 42 "Ready-made" companies available in this jurisdiction
Price of Scotland L.P. companyEUR 1,420, including incorporation costs, full domiciliary (Registered Agent/Office) costs, set of documents legalised by Apostille, including General Power of Attorney.
Cost of annual support servicesEUR 1,090 per year, including annual Government Duty, full domiciliary (Registered Agent/Office) costs, General Power of Attorney for current year.
Also, there are additional payments for preparation of financial statement, depending on complicity of the statement.
  • INTERNATIONAL OVERSEAS SERVICES has the following comments: -
  • A Scottish L.P. is an ideal solution for those who prefer to operate a company incorporated in the EU and to have a totally tax-free facility at the same time.
  • A Scottish L.P has no material differences to an English L.P. However, Scotland provides an opportunity to have a business instrument that is used less frequently.
  • In the UK drawing up financial statements is mandatory for all type of company. This requirement is not cancelled by the fact that technically the Scottish L.P. does not file the reports to Companies House. In addition, the filing of appropriate company tax returns is closely monitored by the UK tax office being HMRC (Her Majesty Revenue & Customs). Penalties are imposed for violation of reporting regulations, and in some cases even criminal liability is considered.