Key Benefits

A UK Limited Liability Partnership is a legal entity which limits the liability of its owners and members.

Key Benefits

United Kingdom

Source image: Media City, Salford Quays, UK by Martin Sylvester / CC BY-SA 3.0

An LLP is essentially a hybrid between a partnership and a limited company which operates under a combination of the Limited Liability Partnership Act 2000 and the Companies Act 2006. It allows business partnerships to enjoy the benefits of Limited Liability, avoiding the problems of joint and several liabilities that apply to ordinary partnerships.

Key Benefits

LLP formations have relatively few compliancy requirements and possess many added benefits when compared to conventional companies. Some of the requirements and benefits are listed below.

The main requirements of a LLP are as follows:

  • Minimum of two members required.
  • Of the members there must be a minimum of two designated members.
  • A registered UK office.
  • Accounting records must be maintained.
  • Annual accounts and returns must be submitted to the Registrar.
  • Although not subject to taxation itself, a LLP must file an annual informational tax return.
  • A LLP must be a commercial venture operating for profit.

There are a number of advantages of a LLP, some of which are listed below:

  • All the members enjoy limited liability.
  • The liability of the members is limited to the investment in the partnership.
  • Unlike other companies which must only trade within the objects stated in the M&AA a LLP has unlimited capacity.
  • An LLP provides a for a more flexible management structure.
  • An LLP is transparent for tax purposes with members being taxed individually on their share of the limited liability partnerships income or gains.

 

Take the next step, we are here to help.

Register a UK LLP company.
Open a UK LLP bank account.

  Resources:

How Initial Coin Offerings Differ from Initial Public Offerings

How Initial Coin Offerings Differ from Initial Public Offerings

Since the hectic and intense ecosphere of the cryptocurrency ventures conception, a new sphere has caught investors’ attention from all over the world, being coined ICOs or Initial Coin Offerings.

Reasons for the Prevalent Misappropriation of Public Funds by Officials in CIS Countries

Reasons for the Prevalent Misappropriation of Public Funds by Officials in CIS Countries

Thorough analysis of the nature, content and determinants of the offence of misappropriation of public funds by officials, it gives grounds to reach the conclusion that a lot of different reasons somehow ‘provoke’ and ‘give the possibility’ to commit this offence.

Notional Interest Deduction: A Useful Tool for Cyprus Companies

Notional Interest Deduction: A Useful Tool for Cyprus Companies

The corporate income tax rate of a Cyprus-resident company is 12.5% on its global taxable revenue, with unilateral credit for related foreign tax suffered. Moreover, non-Cyprus residents are not liable to pay Cyprus withholding taxes on payments. Frequently, the effective corporate tax rate is much lower, or even as low as nil, due to various tax exemptions and allowances.

How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes

How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes

The recent implementation and increasingly stringent tax developments globally can affect companies with offices in different countries; rendering them non-viable if certain factors are not carefully considered.

The Legal Consequences of the Unlawful Transfer of Personal Client Data to Third Parties: UK Case Study

The Legal Consequences of the Unlawful Transfer of Personal Client Data to Third Parties: UK Case Study

As per English common law, banks are liable to both criminal and civil proceedings. According to the case of Bank of Scotland v A, banks have an ability to choose between criminal and civil liability in litigation with their customer. Nevertheless, ‘the last bit’ of this choice has to be decided by the court.

Dormant Companies: A Definition by the Cyprus Inland Revenue Dept

Dormant Companies: A Definition by the Cyprus Inland Revenue Dept

Following Circulars No.2011/11 and No.2011/5, this article will explain what a "dormant company" is, its symptoms and consequent requirements. The following is an extract from PART 1.7 of the "Company Income Statement" form (EP 4), whereby a definition of a dormant company is considered to be a company that meets the following conditions:

How to Effectively Use Software to Improve the Purchasing Process Within your Company

How to Effectively Use Software to Improve the Purchasing Process Within your Company

Companies all over the world rely on controls over expenditure at the point of logging a supplier invoice or receipt, which over time can cause difficulties in producing timely and reliable account management.

Information Security & Factors that Contribute to Data Leakage in the Ukrainian & UK Banking Sector

Information Security & Factors that Contribute to Data Leakage in the Ukrainian & UK Banking Sector

One of the most important regulatory banking documents on information security is the Regulation on bank secrecy and confidential information, which exists in every bank. This document entered into legal force by the banking sector’s order.