SCOTLAND LP COMPANY FORMATION

The internationally recognised and respected jurisdiction of Scotland offers a great vehicle for achieving a 0% tax structure for your business

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An introduction to company formation in Scotland

 

A Scottish Limited Partnership has to have a minimum of 2 partners. The partners can be persons or corporate.  One (or more) of the partners is the General Partner who has the responsibility of managing the partnership and is also responsible for any of its obligations and debts. The other partner(s) is the Limited Partner who must not take part in the management of the company but is then not reliable for any future expenses or debts of the company.

 

The Partnership Act 1890 states that a Scottish Limited Partnership is a legal person distinct from each partner. This recognition is not afforded to an English partnership which is considered instead to be a collection of its partners with no separate legal personality.  The Scottish LP has to file an Annual Return and tax declaration annually

 

The Scotland LP is a tax transparent company. The business itself in not taxed as an entity and instead it is the partners who are liable to pay tax on the profit of the business in their respective countries. As long as it doesn’t derive any income from the UK it is not liable to pay any tax there. For example a Scottish Limited Partnership can be made up of 2 offshore companies  registered in a 0% tax jurisdiction and will then be a completely tax free structure while having the respectability and great reputation of a UK company.

 

Get in touch with us to start your company formation in Scotland today