Scottish Limited Partnership.
Scottish Limited Partnership is a very popular tool in the construction of schemes for tax planning, due to its feature of being a separate legal entity and tax transparency. The type of schemes that reduce the liability of partners in the UK and reduce foreign taxes on income and capital gains. Also there is no requirement in SLP for a stamp duty.
When entering a contract between partners, you will need to make sure that there are clearly stated rules and regulations on contributions, profit distribution, management and output of SLP partnership. It is not necessary to have such contract, however, it is always advisable to have one as to prevent any future conflicts that may arise between SLP partners. If an SLP has decided to have such contract it is important it is regulated by the laws of Scotland and is signed by the parties in Scotland.
An average time for a registration of SLP at the Companies House in Edinburg is within 3 weeks.
Another condition for the registration of SLP is the conduct of the principal business in Scotland at least at the time of registration. However, the activities might be transferred abroad immediately after that.
The tax rate for a company will depend on the residence of a partner. In case your partner is a resident of UK then he or she will have to pay tax on their shares of profits in UK. If he/she is not a resident in UK is only obliged to pay taxes in UK if the business activity takes place in the country, but the tax will only apply to the profit that has been raised on the territory. Only in case if the partners are not residents in UK and do not conduct any business in the territory will they not pay any tax in UK.
If you would like to register a Scottish Limited Partnership BRIS GROUP will be able to provide you with the best solution: fast, professionally and at a low cost!