UK Company Formation
LLPs incorporates the tax transparency and flexibility of a partnership with the limited liability, as well as separate legal identity benefits of a company. UK corporate tax is avoided completely if there are no-resident partners and if the LLP trades solely outside UK. Another popular type of legal entity is the limited liability company, the responsibility of the shareholders is restricted some way.
Types of Limited Liability Companies:
- Public Limited Liability: shares are open to sale for general public. Minimum share capital required is Â£50,000
- Private Company Limited by shares: liability is limited to the capital invested. Minimum of shares it can hold are two, and the maximum is 50.
- Private Company Limited by guarantee: no shares are issued. However the members agree to pay a fixed amount in case of liquidation/bankruptcy.
Requirements for Limited Liability Partnership:
- Two partners required
- The âcapitalâ is contributed by the partners
- No UK corporate tax if profits are passed to the offshore partners
- Trading accounts and a tax return must be filled annually
- No VAT is recommended if you trade only outside UK
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