Lexon Incorporations: Corporate, accounting, trust
Lexon Incorporations: Corporate, accounting, trust
Scotland (UK): Limited Partnership

General information about the country

Scotland occupies about one-third of the area of the island of Great Britain. In 1707 Scotland joined the political union with England under the Acts of Union thus forming the Kingdom of Great Britain, having previously been an independent state.

Scotland has its own parliament which is elected by the people of Scotland. The Parliament appoints the First Minister of the Scottish Government and is entitled to make decisions on such matters as education, justice, transport and organization of local governments.

One of the largest oil deposits in the European Union is located in the territorial waters of Scotland. Accordingly, the city of Aberdeen is frequently called the “European capital of oil”.

Legislation

Scottish law is based on common law as well as the general United Kingdom legislation. However, due to the continued status of partial independence of Scotland, the legal system is different from the national legal system of the United Kingdom.

The Scotland Act 2012, which came into effect from 1st May 2012, is considered to be one of the most significant cases of the transfer of decision-making rights to the Scottish Parliament over the entire history of the United Kingdom. For example, the Act allows Scotland to set its own income tax rate, which may differ from the standard rate of the United Kingdom within limits of 3%, but in practice the Scottish Parliament has not used this opportunity yet.

Corporate characteristics:

Main:
Company typeLimited Partnership
Corporate legislationUK Limited Partnerships Act 1907
Language of company documentsEnglish
Corporate endingLimited Partnership, L.P.
Authorised capital:
Minimum amountGBP 2
Standard amountGBP 1,000
Standard currencyGBP
Permitted currenciesGBP
To be paidNo regulations
Partners:
Minimum number2
Maximum numberNo regulations
Publicly accessible recordsYes
Directors:
Minimum numberNot considered by law
Local directorNot considered by law
StatusNot considered by law
Publicly accessible recordsNIL
Secretary:
Minimum numberNot considered by law
Local secretaryNot considered by law
Publicly accessible recordsNIL
Reports:
Filing an Annual ReturnYes
Fiscal yearEnds at the last day of anniversary month
Financial StatementsYes
Publicly accessible Financial StatementsNo
AuditorDepends on criteria (see below)
Filing a Tax ReturnYes
Corporate taxation:
On trading incomeL.P. is not considered as separate taxpayer
On passive incomeL.P. is not considered as separate taxpayer
Double Tax Treaty network:Not applicable to L.P. with non-UK members

Additional information on taxation

Limited partnerships that do not have residents of the United Kingdom among their founders, and do not receive income in the United Kingdom, are not taxed at the level of the limited partnership itself. The members of a partnership are subject to taxation in the jurisdiction of their residence and in proportion to their equity interest in the limited partnership.

However, the tax-exempt status of a Scottish Limited Partnership does not release it from the obligation to meet other criteria of the United Kingdom legislation which includes the obligation to prepare and keep financial statements.

Generally, a partnership, whose members are legal entities such as companies, is treated as a “qualifying partnership” which is subject to standard company law being the UK Companies Act 2006. This includes the requirements in respect of auditing which are that the financial statements of the company must be certified by a licensed auditor if the company meets at least two of the following three criteria:

Conclusions

A Scottish Limited Partnership is an instrument frequently used by entrepreneurs for carrying out international trading operations.

This type of company has some significant advantages:

Due to the favourable treatment of the management regime of this type of company, the prestige of the jurisdiction, the respectable image of this corporate instrument and tax-exempt status, the Scottish Limited Partnership is highly appreciated by entrepreneurs engaged in international business.

http://lexcorp.com/en/jurisdictions/scotland_lp/ - Scotland (UK): Limited Partnership

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