GREAT BRITAIN (Limited Liability Partnership)

Country’s geography & information in brief: Great Britain or the United Kingdom of England, Scotland, Wales & Northern Ireland is situated in the West Europe on islands to the north from France. State structure – constitutional monarchy. Major currency – pound sterling. Official language – English.

Entity type: Limited Liability Partnership (LLP) registered in England, Scotland & Wales.

Directors: LLP Law of 2000 comprises that an LLP may be managed by its members, who may also act as directors.

Members: Minimum number – 2, may be private or legal persons, residents of any country. One of the members must be a private person.

Secretary: there are no special requirements concerning the secretary, but one of the members can be a secretary.

Authorized capital: No minimum share capital is required. Standard declared capital is of 300 GBP.

Names’ restrictions: name shall end with “LLP”.

Requirements: Company must have a registered address & a secretary in GB.

Information about the beneficiary: the register of directors & secretaries in GB is public. Information about the beneficial owner may be provided only to the secretary & are kept private.

Audit & financial reports: it’s necessary to keep books, prepare & file annual return, financial accounts to the Companies House & Inland Revenue.

Taxation: all the profit is shared by the partners, & only afterwards is subject to the income tax where the partners reside or are registered. Partnerships are not considered as companies in GB, therefore they are not liable to the corporate income tax.

Constituent documents set: Certificate of Registration, Appointment of Partnership Director & Secretary, General Power of Attorney, Partnership Agreement, Minutes of the meeting of directors, Certificates.

Nominee service: allowed.

Transfer of an alien company to Midland Consult service: possible, but only with consent of the previous secretary company in GB.

Currency control: no

Taxation: for detailed information about taxes & fees please visit GB Inland Revenue web page http://www.hmrc.gov.uk/

Additional information: It is profitable to use a partnership when making international intermediary deals. The partners are liable to pay out taxes, meanwhile they can be no n – residents of GB nor taxpayers elsewhere (if these partners are foreign off-shore companies or private persons & in countries of their residence sources of income in other territories are not taxable). Thus if a company doesn’t get benefits in Britain, it is not liable to British taxes. The following accounts shall be filed by an LLP:

Annual Return includes registered address, beneficiaries & management bodies of the company. It is to be filed every 12 months from the formation date. The dead line is within 28 days.
Accounts include information about company’s financial activity. The first account is due to be filed within 10 months from the moment the account period ends. By default the account period comprises the end of the month following the anniversary month of the incorporation. Considerable fines may be imposed for late accounts filing. The account shall be made on the basis of bank statements, contracts, agreements, invoices. If a company’s turnover is more than 5 million GBP (about 10 million USD) the audit is needed. If a company has less turnover than its accounts are prepared by an accountant, signed by the partners & filed to the Companies House by the secretary company.