International customers - Limited liability partnership company formation package

Who is this package suitable for?

This package is suitable for international customers (non-UK residents) who want to form a limited liability partnership company in the UK. This package includes a registered office address and virtual business address , allowing you to register and run your limited liability partnership company from wherever you are.

What is a liability partnership?

A Limited Liability Partnership (LLP) is a form of registered company created to enable professionals such as accountants, architects, solicitors and various types of medical practitioners in partnership to take advantage of the limited liability it offers.

What type of businesses usually operate as LLP?

Limited liability partnerships are typically formed by professionals such as accountants, architects, solicitors and medical practitioners. When restrictions are imposed by professional associations to operate as a limited company, they choose to operate as an LLP. Traditionally, they used to operate as partnerships but today register as LLPs. Many family-owned firms also use the LLP model to benefit from its various advantages. If you have specific questions on the tax implications and benefits, please seek advice from a tax consultant.

What are the basic requirements to form an LLP?

• You must have a registered address (also known as your principal place of business)
• An LLP must have at least two members, or partners. There is no upper limit on the number of partners in an LLP
• An LLP must appoint general and limited partners
• An LLP must register with Companies House

Who are the officers of an LLP?

Unlike in a limited company, a limited liability partnership does not have directors or a secretary. Instead, an LLP must have at least one “general partner” and one “limited partner”. General and limited partners have different responsibilities and levels of liability for any debts the business can’t pay. All partners pay tax on their share of the profits.

What is the advantage of forming LLP?

When you register as a limited liability partnership , the members (partners) protect their private assets. If the business fails, the partners will only lose the money they have invested in the partnership; their private assets will stay secure. If something goes wrong in an unregistered partnership, all partners can be held liable for the debts of other partners. As such, an LLP offers more security to its partners.

What are the statutory responsibilities of an LLP?

An LLP has various responsibilities, including:

• Maintaining statutory registers, including a register of LLP members and PSCs
• Filing accounts
• Trading — the company cannot be registered as dormant
• Filing a confirmation statement with Companies House
• Existing until it is formally terminated (via dissolution or a similar process)

How long does it take to register an LLP?

Our LLP formation application process is entirely online and takes just minutes. Typically, we will register your LLP within three to six hours, but this time can vary depending on the workload of Companies House on the day.

Will my choice of LLP or LTD depend on whether we employ others?

If your business has two or three members who make similar contributions and draw similar salaries and are likely to continue to do so, registering an LLP might be the most efficient option for you. However, if you are likely to employ people whose payroll is likely to be higher than the owners’ salary, a limited company might suit you better. We recommend seeking advice from a tax consultant to discuss your options.

How does partnership work in an LLP?

Partners’ responsibilities

You must appoint at least one “general partner” and one “limited partner”. A partner can be an individual or a company. Whether you are a general or limited partner affects:

• your liability for the partnership’s debts
• your responsibilities.

You can’t be a general and a limited partner at the same time. All partners are equally responsible for any debts or obligations until the partnership has been registered.

Limited partners

As a limited partner, you:

• Contribute an amount of money or property to the business when it’s set up
• Are liable only for debts up to the amount you’ve contributed
• Can’t manage the business
• Can’t remove your original contribution
• Must register for self-assessment with HM Revenue and Customs (HMRC).

General partners

As a general partner you:

• Are liable for any debts the business can’t pay
• Control and manage the business
• Can make irreversible (“binding”) decisions for the business
• Can apply for your business to act as an authorised contractual scheme (ACS).

You must:

• Register the business with Companies House
• Register the business for self-assessment with HMRC — you must also register separately as an individual
• Register the business for VAT if you expect to have an annual turnover of more than £85,000
• Act for the business if it’s wound up and dissolved
• Send accounts to Companies House if the general partner is a limited company.

Is a formal partnership agreement required for an LLP?

It is not a legal requirement to have a partnership agreement, but we highly recommend it, as it will help to prevent any partnership disputes in future.

What’s included in this package?

• Limited liability partnership company setup
• Companies House filing fee
• Email copy of certificate of incorporation
• Email copy of draft LLP agreement
• Email copy of company register with first entries
• Registered office address service
• Director’s address service
• Business address service (with mail forwarding)
• Help with opening a business bank account (optional)
• Online company manager
• Maintenance of statutory books
• Printed certificate of incorporation
• Printed copies of draft LLP agreement
• Confirmation statement (previously called an annual return)
• Free consultation with a chartered accountant
• Free lifetime customer support
• Pre-submission review
• Dedicated personal manager support
• International courier delivery