Procedure of company registration

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

There are no shares in a LLP, instead of issuing shares the members of a LLP are its investors and are issued Interest Certificates which reflect the amount of investment in the partnership. A LLP does not require a Memorandum and Articles of Association instead a Partnership Deed is used to specify how profit is split and what happens in the event that the partnership is wound up.

The management of the LLP is conducted by the Designated Members (similar to Directors). There must be two or more Designated Members. Each Designated Member is responsible for fulfilling certain duties and obligations. Unless the Registrar is specifically advised which members are Designated Members all members will be deemed to be so.

The LLP is not subject to any corporate income tax in the UK, instead the profits are distributed to the members who pay personal income tax on their income from the partnership. The members are liable for Capital Gains Tax and are obligated to make National Insurance Contributions.

In order to register a LLP the following documentation is required:

  • Certified proof of ID for the members and beneficial owner
  • Certified proof of address for the members and beneficial owner
  • Completed Application Form (supplied by Eltoma)

Timescale:

The formation of a LLP is very quick once the signed LLP2 form is delivered to Companies House. A next day formation service can be offered, subject to receipt of all correct documentation.

The following documents will be received upon incorporation:

  • Certificate of Registration
  • Partnership Agreement
  • Partnership Combined Register
  • Minutes of the First Members Meeting
  • Membership Certificates & Membership Register

Take the next step, we are here to help.

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

  Resources:

European Commission publishes tax avoidance disclosure directive

European Commission publishes tax avoidance disclosure directive

The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.

OECD publishes compliance review for all non-compliant jurisdictions

OECD publishes compliance review for all non-compliant jurisdictions

The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.

EU Parliament Committee release findings & recommendations for current offshore taxation measures

EU Parliament Committee release findings & recommendations for current offshore taxation measures

A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.

2017 G20 summit: Enforcement of taxation highest priority

2017 G20 summit: Enforcement of taxation highest priority

The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.

The EC takes action against advocates promoting tax avoidance schemes

The EC takes action against advocates promoting tax avoidance schemes

The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.

What are the new Beneficial Ownership reporting requirements for BVI companies?

What are the new Beneficial Ownership reporting requirements for BVI companies?

Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.

Cyprus tax department releases new guidance on CRS deadlines and the online portal

Cyprus tax department releases new guidance on CRS deadlines and the online portal

The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).