The British law allows applying quite flexible conditions when registering foreign firms in the form of LLP. The UK is very difficult to name an offshore classical zone as it is traditional understood, however, the country has been attractive for company registration for many years.
If a new company is established in such a prestigious European jurisdiction, the new company owner receives the registration address in the UK capital. The UK legislation does not set requirements in terms of share capital. Under normal conditions, this figure is 100 000 pounds sterling, of which 2 pounds is enough to be deposited. At least two participants should be there in the company that may be both individuals and entities. Requirements for residency are not set to individuals. Limited liability partnerships are allowed to issue ordinary shares with the right to vote, privileged shares without the right to vote, but with guaranteed dividends.
If the company opened in the UK is involved in commercial activities outside this state, it will be taxed at zero rate. In order to register legally, a package of documents should be collected and submitted that includes the Foundation Agreement, Application, Certificate of conformity and other documents. Moreover, an advance payment is required at a rate of thirty percent of the total amount.
If the entrepreneur plans to open an offshore company in the UK, he will have to report every year, to have an office premise and a registration agent within the jurisdiction. Companies are not allowed to engage in any charitable activities. A new company registration in that country does not suppose subsequent change of jurisdiction and possibility of moving to another zone. This country attracts businessmen of different levels around the world by stable economic development, good stability of banking system.
PACKAGE OF DOCUMENTS REQUIRED TO SET UP UK LLP
To properly manage UK LLP registration, the founders are offered to chose it in the list companies established by specialists of the Private Financial Services, or start the procedure from scratch. To proceed, the following documents should be prepared:
- certified passport copy
- certified utility bill
- filled application
There is another list of documents to be submitted in its original form and certified by nominee partners. It includes:
- Form LP5;
- Pre-Incorporation Memorandum of Association;
- Certificate of Registration;
- Minutes of the First Meeting of Members;
- Partnership Agreement;
- Resolution of Members;
- 2 Share Certificates;
- 2 Instruments of Transfer;
- Certificate of Non-Trading (it is included if an existing company is purchased);
- Declaration of Trust;
- Legalised Power of Attorney apostilled (valid for a year or to the date of company registration prolongation);
- Letter of Resignation with open date;
- Nominee Services Agreement.
ADVANTAGES OF BRITISH JURISDICTION
The offshore zone in this country allows a range of advantages to entrepreneurs who register their company there. This zone has always been prestigious jurisdiction. Privacy of personal data allows to ensure a nominee service, when the owner of the company is granted the general power of attorney apostilled for one year that may be extended for any period.
The following refer to important advantages for the entrepreneur:
- zero taxation for LLP if they are founded by two offshore companies and activities kept outside of England;
- absence of governmental currency control – it is required to only submit the reporting within the terms as specified by law indicating at least one transaction therein, and this may evidence the activity of the company;
- withdrawal of audit obligations (under certain circumstances);
- stable legislation;
- good investment climate;
- developed banking and economic system.