A UK Limited Liability Partnership (LLP) is a flexible and tax-efficient business structure, ideal for international entrepreneurs, consultants, and professional service providers. The UK LLP offers liability protection while allowing profits to be distributed directly to partners, making it a popular choice for businesses seeking a legally sound and reputable jurisdiction.
As an established partner in UK business formations, we facilitate LLP registrations, tax structuring, and compliance procedures, ensuring businesses can be set up quickly and efficiently with minimal bureaucracy.
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A UK LLP is a widely recognized and respected business structure that offers flexibility and operational efficiency. LLPs do not pay corporate tax if their profits are generated outside the UK, making them an excellent option for international business activities. Additionally, LLPs provide partners with limited liability protection, safeguarding personal assets.
The UK’s regulatory framework ensures that LLPs benefit from a strong legal system, international credibility, and ease of operation. With minimal reporting requirements and straightforward compliance, a UK LLP is a highly efficient business vehicle.
A UK LLP is a pass-through entity, meaning it is not subject to corporate tax at the entity level. Instead, profits are allocated to partners and taxed according to their personal tax obligations in their country of residence. Key tax features include:
No UK Tax on Non-UK Income: If the LLP generates no UK-sourced income and all partners are non-UK tax residents, no UK taxes are due.
UK-Sourced Income: Income from UK-based clients is subject to UK taxation at the partner level, with rates depending on individual circumstances (e.g., 20–45% for UK residents).
No Capital Gains Tax on Business Assets: Profits from asset sales are taxed at the partner level, often exempt for non-residents.
Double Taxation Agreements: Over 130 DTAs reduce withholding taxes on international transactions, enhancing tax efficiency.
VAT Compliance: LLPs must register for VAT (20% standard rate) if providing taxable services in the UK exceeding the threshold (currently £90,000 annually).
While UK LLPs are highly flexible, they must adhere to specific regulations:
Minimum Two Partners: At least two designated partners are required for legal compliance, responsible for filings and record-keeping.
Registered Office: A UK-based registered office address is mandatory.
Annual Reporting: LLPs must file annual accounts and a confirmation statement with Companies House, though partner details remain private.
VAT and Tax Compliance: LLPs with UK-sourced income or taxable supplies must comply with HMRC regulations.
No Share Capital: LLPs do not issue shares, limiting their appeal for businesses seeking equity-based funding.
Emifast ensures your LLP meets all regulatory requirements, streamlining compliance and minimizing risks.
Opening a corporate bank account for your UK LLP is streamlined with Emifast’s support. We assist by:
Facilitating UK LLP corporate bank account setup with leading banks like Barclays, HSBC, and fintech platforms like Starling or Revolut.
Offering expert guidance on selecting the right banking partner for your needs, including those supporting international transactions.
Ensuring compliance with UK Financial Conduct Authority (FCA) regulations for seamless banking operations.
Our banking solutions support your LLP’s operations, from GBP-based payments to multi-currency accounts for global trade.
A UK LLP is ideal for professionals and businesses that require a reputable and tax-efficient corporate structure. It is particularly suited for service-based businesses, international consultants, and companies that operate in global markets. Entrepreneurs looking for a non-resident company structure with tax transparency will find the UK LLP a strategic option
The combination of low taxation, ease of doing business, and strategic location makes Georgia a great choice for international expansion.
A UK LLP itself is not subject to corporate tax, as it is treated as a pass-through entity. Instead, the profits are taxed at the partner level, meaning that each partner is responsible for paying tax in their respective country of tax residence. If none of the partners are tax residents in the UK and the LLP generates no UK-sourced income, no UK taxes are due. However, if the LLP earns income from UK-based clients, such earnings are subject to UK taxation at the individual partner level.
While UK LLPs offer many advantages, they must comply with local regulations, including maintaining registered office addresses and filing annual reports. Additionally, LLPs must have at least two designated partners responsible for legal compliance. Although LLPs are tax-efficient for non-UK activities, any UK-sourced income is subject to taxation.
With our expertise and direct access to UK regulatory bodies, we ensure a smooth and efficient LLP registration process. Our services include:
Whether you are setting up a professional services firm, a digital business, or an international consultancy, we provide tailored solutions to help you maximize the benefits of a UK LLP.
Note
While a UK LLP offers a highly flexible and tax-efficient business structure, every situation is unique. The best setup depends on individual circumstances, business activities, and long-term goals. Seeking expert guidance ensures full compliance and helps maximize the available benefits for both businesses and individuals.
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