About Scotland
Scotland apperas to be an autonomous state in The United Kingdom of Great Britain and Northern Ireland, and also Scotland is an important jurisdiction of international tax law planning.
It is a country with a preferential tax treatment, which can become your tax-exempt jurisdiction under certain conditions (you are not a resident of the UK, you do not carry out business and do not receive income on its territory). Under these conditions, the partnerships are exempt from paying British taxes. And the right corporate structure of the company (when partners are residents of tax-exempt offshore zones) enables the partnership to have the «offshore status» and gives you the opportunity to enjoy all tax benefits.
ADVANTAGES OF REGISTRATION OF THE OFFSHORE IN SCOTLAND:
- Scotland is not mention edinany black lists of any country, including Ukraine
- Scotland connects the prestige of England and personal achievement
- Registration of companies in Scotland is a profitable alternative to classic offshore companies and companies in England
- No obligation to file financial statements annually and, subject to certain conditions, pay taxes
LEGAL REGULATION
Scotland's businesses are governed by British law:
- the Companies Act 2006;
- the Limited Partnership Act 1907.
Types of companies
It is possible to incorporate a Partnership with Limited Liability (LP) in Scotland. Alongside, it is obligatory to put the words LP right into the name of the company. It is possible to insert following words into the company’s name like «bank», «insurance», «trust» only if you have relevant licenses for performing such kind of activities.
REGISTRATION OF A COMPANY IN SCOTLAND: REQUIREMENTS
PARTNERSHIPS WITH LIMITED LIABILITY (LP):
- Minimum statutory capital – not established.
- Founders’ requirements – at least 2 partners (individuals or legal entities). There is no resident requirement. There should be compulsory one general partner at minimum that takes responsibility for the company’s debts and one limited partner that takes responsibility only in scope of this partner’s share.
- Director may be represented by the general partner or by the manager, the latter is appointed by the general partner.
- Secretary – not required.
- Public information: information about partners. Since July 2017, Scottish LPs are required to submit data of persons with significant control (PSC - person with significant control) to the open Company House Registry.
- Scotland LP being not a UK resident is obliged to submit annual nil tax return.
- LP in Scotland is not subject to annual financial accounting.
- The Partnership’s registered address should be in Scotland.
- Acquiring a Scottish LP Company you get a legal entity which can possess assets and immovable property, be part of the agreements, can borrow money etc.
TAXING
If the LP’s partners are not the UK’s residents, do not do any business on the territory in the UK and do not receive any income on the territory of UK, than the LP partnership does not pay UK taxes. If the partners are residents of the UK, then taxes should be paid according to the tax scale of the UK.
When incorporating the Scottish LP, this legal entity is not considered as the separate subject of the tax system. Partners of LP pay taxes according to the received Partnership’s income which was received according to their interest, and bearing in mind the tax rate of the certain Partner’s residence and its ratio of income of the LP Partnership.
So the correct corporative structure where partners of the LP are not the UK residents, though are residents of other countries, then such LP will be free from paying taxes according to the UK Law. In order to save the maximum of the LP partners’ income, it is advised to appoint offshore partners from the low tax jurisdictions.
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DOUBLE TAX AVOIDANCE AGREEMENTS
As the Scottish LP does not pay UK taxes – LP companies are not subject to the power of UK’s Double tax Agreements. Not with standing such legal feature, it is popular to incorporate a Scottish LP and such type of companies are widely used in international intermediary trade.
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FEATURES
Please, be aware that very often you can find such a thing as «Offshore Scotland». In fact, Scotland has never been a pure offshore jurisdiction. It is a country with a preferential tax treatment, which can become your tax-exempt jurisdiction.
«Offshore Scotland» is a good choice of a high-status jurisdiction with the possibility of tax-free and report-free operation of business abroad. It’s a huge advantage if you are going to open an account in a foreign bank due to the fact that a growing number of foreign banks refuse to work with offshore companies and to open accounts for them.
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If you are planning to open a company in Scotland, please contact our lawyers for advice:
+38 (098) 737-88-88
We will help you buy a company in Scotland or any other jurisdiction of your choice.
The cost of registering a company in Scotland is determined specifically for each business and its features, so get the final price in a commercial offer after clarifying all the details with our lawyer.
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