Limited Liability Partnership - LLP in UK. UK company registration, incorporation. Obtaining UK VAT and EORI registration
A relatively new form of legal entity which is known as a British limited liability partnership ("LLP") is a good solution for those foreign businessmen and traders who wish to enjoy the benefits of low or no-taxation and still keep the prestige of being incorporated in the UK. The essential feature of an LLP in UK is that it combines the organizational flexibility and tax status of a partnership (i.e. UK LLP members are supposed to be taxed in the country of their residence) with limited liability for its members. This limited liability is possible because a UK LLP is a legal entity separated from its members. UK VAT number and EORI registration may be helpful if the UK LLP trades within or outside of the EU.
UK LLP advantages and features
- a UK LLP is a partnership, which is in itself a legal entity, while the partners enjoy limited liability. The liability of the partners is limited to the amount of their investment into LLP;
- any person or legal entity can be a partner in a UK LLP. There are no restrictions on the nationality or residency of the partners, i.e. LLP partners may be either residents or non-residents of the UK;
- UK LLP taxation is advantageous when its partners are foreigners. Its income is passed through to its partners and taxed at the individual partner level, without any income tax assessment at the LLP entity level;
- a UK LLP is as flexible business tool as the members make it according to their needs;
- an LLP in UK can have a VAT number and EORI registration, which is an advantage for those trading within Europe;
- an LLP must be formed for the purpose of carrying on a lawful business with a view to profit.
A UK LLP must start trading within a year of its incorporation; otherwise it will be struck off by Companies House.
A UK LLP can have at least two or more members (partners) with equal responsibilities. The profit of an LLP is divided between the partners in the proportion of their participation in the LLP.
Details of all UK LLP members must be recorded with the Companies House and therefore are available to public.
A UK LLP must have at least two, formally appointed, Designated members. Designated members have the same rights and duties towards the LLP as any other member. However, they are responsible to perform specific rights and duties (like signing the Company Accounts, signing any changes on forms for Companies House, signing the company Annual return) on behalf of the LLP.
All the members of a UK LLP must draw an Agreement. This is the main document that declares the company structure, corporate activities, the rights and duties of members, the share percentages, etc. If a corporate bank account is opened, this Agreement must be shown to the bank, and there must be a minute to open the Bank Account.
The UK LLP agreement also covers the relationship between the members and the separate corporate entity, which is the LLP.
Schedule of fees
- Incorporation of an UK LLP including LLP documents - all apostilled - GBP 490
- Preparation of an LLP Agreement depends on the client's requirements and starts from - GBP 120
- UK LLP administration services (including a London registered office address and local secretary service) - FREE for the first year and GBP 390 per annum starting from the second year
- Compliance Service (includes all necessary filings (Annual Report, annual accounts, tax returns) to the authorities) - depends on the LLP annual turnover
- UK Mail Forwarding Service (trading address) - GBP 220
- We can provide fax and telephone support services in the UK as well. Please ask for details if interested
- Courier delivery - GBP 65
- We can apply for a VAT number for your LLP if the company is trading in the UK. A VAT number can be obtained if the company is invoicing more than - GBP 15,000.00 per quarter or if it is going to be invoicing over - GBP 58,000.00 per annum. We will need the invoices for the three months period to apply for VAT number.
Applying for a VAT number - please ask for quotation
- If you are in export-import business, your LLP may need EORI registration as since July 2009 EORI (Economic Operator Registration and Identification) commenced across the EU. Assistance to obtain EORI is - please ask for quotation. A company may not be VAT registered and still obtain EORI.
- Any additional services like assistance with bookkeeping, introduction to the Chartered Accountant can be provided per your request.
Procedure and time frame
Please advise if you wish to proceed with LLP in UK incorporation and list the services you require (including additional services like mail forwarding, assistance with annual reporting/accounting, etc.). Then we will send you an invoice with wire transfer instructions. When the fees are received we will send you the UK LLP forms for signing. The UK LLP incorporation takes 7- 10 business days after the receipt of signed forms.
- A .pdf file on UK LLP formation and names
- FAQ on Economic Operator Registration and Identification (EORI)
Please request additional information sending
a message to our fax numbers in:
UK: +44 870 421 1387
USA: +1 626 609 3984
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