When planning on establishing a partnership, why should you choose Scottish Limited Partnership (SLP) and what are the advantages of SLP.
Scotland is a part of the United Kingdom (UK), which is a leading global financial and business centre of the world. Hence it is a jurisdiction, well known and good choice for tax planning. SLP internationally is known for standard system of taxation and is not being referred to as “tax heaven”, since it is a part of the UK.
Located to the mid-west of Europe, Scotland is a country that is part of the UK and covers the northern third of the island of Great Britain. Scotland shares its mainland border with England, and, in addition to its mainland, is made up form nearly 800 small islands, only 130 of which are inhabited.
Scotland has beautiful landscapes, including sandy coastlines, mountains, forests and lakes (there are more than 600 square miles of freshwater lakes, including the famous Loch Ness) and it is surrounded by several different seas.
Biggest cities in Scotland are Edinburgh, which is the capital, Glasgow, Aberdeen, Dundee and others. The number of inhabitants in Scotland at the recent Census was 5,062,011. It rose to 5,295,400, the most astounding ever, at the 2011 Census. In spite of the fact that Edinburgh is the capital of Scotland, the biggest city is Glasgow, which has a little more than 584,000 people. Covering an area of 78,782 square kilometres (30,418 sq mi), Scotland has a population density of 67.2/km2 (174/sq mi).
Scotland has three officially recognized languages: English, Scots and Scottish Gaelic, and the last one is used only by one per cent of the population.
The country still has its own legal system, separate from England, Wales, and Northern Ireland. Legal system of Scotland is the Scots law. It is a hybrid or mixed legal system containing civil law and common law elements, that traces its roots to a number of different historical sources. Together with English law and Northern Ireland law, it is one of the three legal systems of the United Kingdom.
GENERAL Type of Entity Limited Partnership Legal System Common Law Primary Corporate Legislation Limited Partnerships Act 1907 and Partnership Act 1890 Shelf Companies Permitted Yes Company Formation Time One - two weeks Corporate Taxation SLP`s that do not conduct 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 UK corporate taxes. Tax Treaties SLP`s that do not conduct 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.
Default Currency GBP Minimum paid up capital GBP 2
PARTNERS / MEMBERS
SLP companies require a minimum of 2 Partners, who may be natural persons or corporate bodies from any legal jurisdiction.
The partnership requires at least one limited partner and at least one general partner.
PUBLICLY ACCESSIBLE RECORDS
Yes. Each SLP company must file a register of its Partners with the Register of Enterprises of Scotland.
ACCOUNTS AND BOOKKEEPING
Must prepare and maintain Yes Account location requirements Anywhere Audits No Account filing requirements No Requirement to File Annual Return Yes Public record of company accounts No
Scotland Limited Partnership (SLP)
SLP is a partnership formed in accordance with the Limited Partnerships Act 1907. Unlike Limited Partnerships registered in the rest of the UK, the SLP has a legal personality of its own.
- Must have at least one general partner, who is responsible for the management of the SLP and is liable for the debts and other obligations of the SLP.
- Must have one or more limited partners, who are not taking a part in the management or decision making of the SLP and whose liability is limited to the value of their capital contributions.
- Is registered at Companies House.
- Its partnership agreement, governing the relationships between its partners and the partnership is governed by Scots law.
- Has its registered office address and is domiciled in Scotland, although activities cab be carried outside in any legal jurisdictions.
- Is subject to Scottish courts which will determine any disputes in relation to the activities and assets.
SLPs are suitable for all types of businesses, including, but not limited to:
- holding, ownership of investments and assets, such as real estate or stocks, shares;
- international trading companies;
- services provider;
- online business (merchant providers are happy to accept entities that are incorporated in EU);
SLP with non-resident UK members and with no business activities within UK are not regarded as UK-taxable entities. Income of the SLP is treated as being income of its members, therefore taxable in the country of the members’ residency on a pro rata bases, based on their interest in the SLP.
Limited Partnerships Act 1907
Partnership Act 1890
Main reasons to choose Scotland Limited Partnership:
SLP is an ideal choice when EU based vehicle is needed, even while it is incorporated in EU, it offers tax free facility, in cases when company is formed for non UK members.
Appointing BVI, Belize or Seychelles as general partners to the SLP, brings all new perspective, as when these partners, receive income abroad, are tax exempt in UK, while liable for local taxation system, which in these jurisdictions is at 0% rate. With a proper corporate structure, such vehicle becomes a perfect business tool.
When general and limited members are corporate vehicles, incorporated in jurisdiction, where filing of members, directors, owners is not mandatory, identity of those behind these vehicles is not publicly accessible.
Another benefit of an SLP is that the Partnership is its own legal entity, meaning, it can own its own property and conduct legal matters in its own name, not in the name of its partners. SLP can also sue and be sued as a separate legal entity.
- Basic SLP formation with prices starting from USD 1130*.
- Premium SLP formation with prices starting from USD 2580*.