SCOTTISH LIMITED PARTNERSHIP:
Reasons to choose Scottish Limited Partnership (Scottish LP)
- Nominee partners can be used
- Nominee manager can be appointed
- Exclusive partners can be incorporated in tax-free jurisdictions
- Good business image
- Low maintenance cost
- If no business in the U.K,. no taxes to be paid in the U.K.
Reasons to register your company in Scotland
- own assets on its own name
- enter into contracts
- open bank accounts on the partnership’s name
- borrow and lend funds
- each partner is taxed separately on distributed profit according to their tax residency
- taxation is based on the proportion of the ownership
SCOTTISH LIMITED PARTNERSHIP. ONSHORE PERSPECTIVE.
A Limited Partnership (LP) is a form of partnership, which contains elements of limited and unlimited liability. LP must have one or more general partners that bear unlimited liability for debts and obligations of the partnership and one or more limited partners that are responsible for debts and obligations of the partnership in the amount of their contributions.
LPs are effective vehicles for a variety of business activities and the concept that limited partners do not participate in management and have limited liability makes LPs ideal for multi-party investment structures where management and control rest with the general partner or a third party manager appointed by the general partner.
Scottish LP has a separate legal personality from the partners that set it up. This feature allows a Scottish LP to have rights and undertake obligations in its own name and hence, hold assets, enter into contracts and incur debts.
UK tax resident partners are subject to UK tax on their share of worldwide partnership profits. Those partners who are not UK resident, however, will only pay UK tax if the partnership is carrying on a trade in the UK, and only on their share of profits arising in the UK. Provided the partnership is not trading in the UK, however, no UK tax will be payable by non-UK resident partners.
ACCOUNTING AND ANNUAL RETURNS
As every company, so should a Scottish Limited Partnership keep appropriate accounting records and also prepare each year Financial Statements, nevertheless there is no requirement to file an Annual return. Tax Declaration must be submitted to Her Majesty Revenue & Customs annually.