Scottish LPs (Scotland Limited Partnerships)

A Scotland LP is a privately-owned Limited Partnership wherein 2 or more persons or corporate entities are nominated as the Partners/Members of the LP. At least one of the Partners in the LP must be nominated as “General Partner (i.e. “Managing Partner”). The Partners/Members may be natural persons or corporate bodies from any country (ie there is no requirement to have a Scottish resident Partner).

Key Features:

Minimum two partners (Nominee partners can be provided)
Company House will hold in the public records only the names of the Members/Partners (which are commonly offshore entities).
Each Scottish LP must have a Registered office in Scotland (which service OCI can provide)
There is no requirement to keep accounts
There is no requirement to file a tax return with the Scottish/UK Revenue Service
There is no audit requirement
Shelf partnerships are available for purchase
Not perceived as a “Tax Haven” Entity but can achieve the same ends (ie a nil tax result, see below)
Particularly advantageous for those looking to do business in Europe
Low set up cost (can be capitalized with as little as GBP2!)
No requirement to file beneficial owners’ details
Nominee Partners can be deployed
Board Meetings can be held anywhere
VERY high political/economic stability
Affords access to UK Banks

Common Uses For Scottish LPs

Non-Resident Scotttish LPs (ie where the Partners are companies/persons based outside the European Community) are commonly used for:

the holding of investments/assets including real property, Mutual Fund Interests, IP etc
holding the shares of limited companies
international trading operations
consultancy and personal service companies

Taxation

A Scottish LP is not liable to declare income or pay tax in the UK where the members of the Scottish LP are based outside the UK and there is no business activity taking place inside the UK.

LPs are classified, for tax purposes as pass through entities. That is the Partnership is not liable to file a tax return or pay tax provided it distributes its income to the Partners. In accordance with general UK tax protocols, the income of the LP is treated as being the income of its Partners, and therefore the Partners agreed share of Partnership profits are only taxable in the Partners’ countries of residence (eg the jurisdiction of incorporation, in the case of corporate Members).

Where the Partners of a Scottish LP are themselves zero tax entities (eg 2 tax free International Business Companies or nil tax Offshore trusts or nil tax Private Foundations) profits generated from a Scottish LP can be banked free from tax.

Price and Inclusions

OCI (www.offshoreincorporate.com) can assist you to set up a Scottish LP.

Included in the all-inclusive set up price of $800 for a Scottish Limited Partnership are the following components:

Services:

Unlimited name availability inquiries
Advice from an experienced International Corporate Lawyer on how to structure your Limited Partnership
Preparation (overseen by a Lawyer) of application to register the Limited Partnership
Preparation (overseen by a Lawyer) of the Limited Partnership agreement
Preparation (overseen by a Lawyer) of the Statement of Particulars
Attending to filing the Limited Partnership registration request with the registry
Attending to payment of government filing fees
One year’s Registered Agent’s service in the country of registration
One year’s Registered Office service in the country of registration
Mailing address in the country of registration
Delivery of registration pack by international courier (ie DHL/Fedex/TNT etc)
Unlimited free legal consultations for 12 months