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Scottish LLP need more information and fees please?

myhand

myhand

Rothschild family member
Pro Member
Nov 5, 2012
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#1
I have read about the Scottish Limited Partnerships companies which may be a great alternative to many of the available offshore jurisdictions.

What I would like to know is how much corporate tax it has to pay?
How complicated is it to incorporate your business in Scotland?
Is accounting and filing of financial report required?
What are the total costs to establish / setup a company in Scotland specially the LLP?
What are the total annual costs to maintain the company there?

Any first hand information would be great. I recognize that most are into other offshore jurisdictions and for that reason the Scottish LLP has not been discussed here very much so if you have any other information you are welcome to post it here so we may discuss the matters.

So far I found a government link here Set up and run a limited liability partnership (LLP) - mygov.scot explains what it is and how to register.. still I would like to know other people experience if possible.

Here I found a service that is registering Scottish LLP's Scottish Limited Partnership, Scotland LLP | GR Morgan they are also into UK company formation and other stuff. I have seen them popping up lot's of times in Google and various forums but never been using them. I don't know if they are for real or a scam, so if some knows please post here. Also competing operations with even lower fees would be appreciated.
 
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#2
Researching now....

Already found a better alternative Benefits of Starting Up a Scottish Limited Partnership not sure if this will work for my purpose as said researching my options.

The question will be if we can get a bank account for this entity or if it going to be impossible because of the structure of the Scottish LLP will sending tickets to all I find and know to get clarification for banking :)
 
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#3
This is going to be interesting.

Will check if it is possible to open an account in Cyprus for such an entity not sure if that is possible.

Anyway, I can see the entity is not taxed at all but the individual partners are!

I also read the below:
We can help to open a bank account with banks in England, Scotland, and Scotland. We can also assist you to open a bank account for your limited partnership in the Republic of Latvia, (member of the EU), we can also assist to open a bank account in Belize, Seychelles and Nevis.
Click to expand...

Wonder if coddan really is able to open a UK bank account for such an entity!!
 
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#5
Checkout this: Trust and Transparency: an overview of the new PSC Register and the rules governing the disclosure of controlling interests in UK companies and LLPs - Articles - Olswang LLP

What's next?
Although the rules on the PSC Register are now in force, this is not the end of the story with issues relating to transparency continuing to make the headlines. The Fourth Money Laundering Directive (which introduces very similar rules on a Europe-wide basis) must be implemented by 26 June 2017 and, although the PSC Register provisions will fulfil most of the requirements of the Directive, some changes to the detail will be necessary. In particular, further consultations this year will deal with extending the provisions to Scottish Limited Partnerships and some other legal entities.
Click to expand...

It seems soon this is also not a valid way to get something setup that protect your privacy in any matters. Soon the Scottish LLP model is dead and people will have to look in other directions!

What are our options, someone knows?
 
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#8
Seems that much have changed during 2016 what to you predict for 2017 and the Scottish LLP are they finish there with creating these entities because they are simply useless for the people that had use for them before? Or will there be new opportunities for people with already registered LLP's there?
 
#9
auric said:
It seems soon this is also not a valid way to get something setup that protect your privacy in any matters. Soon the Scottish LLP model is dead and people will have to look in other directions!
What are our options, someone knows?
Click to expand...

I looked a bit deeper into it. Please check the attachmented file.
I tried to post directly it but it seems it was too long... :(

What are your thoughts?
 

Attachments

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#10
That's a lot of reading.. will go through and also do some more research this is going to be interesting. Will post back here shortly.
 
#11
busdriver said:
I looked a bit deeper into it. Please check the attachmented file.
I tried to post directly it but it seems it was too long... :(

What are your thoughts?
Click to expand...
You just needed to copy paste it into a text file first and then into this thread, I did it for you, please see below :)

An issue is of course "the register of people with significant control".
From 6 April 2016 individuals and legal entities with significant control over ... Limited Liability Partnerships (LLPs) will need to be identified on the people with significant control (PSC) register for their respective entity. ...

From 30 June 2016 onwards companies, SEs and LLPs will have to deliver this information annually to the central public register at Companies House when making a Confirmation Statement So the SLC has to collect the information of it's PSCs and than annually forward it to Companies House.

Looking at the Guidance_for_PSCv2.pdf I see aspects that soften the power if it further:
A company must actively seek information about its PSCs. If you have not volunteered your information, the company must send you a notice within one month of becoming aware that you are a PSC. You must reply withinone month of receipt.
...
The company may also send notices to someone who knows about your interest, rather than to you personally.
This might be a nominee, professional advisor or family member, for example. Anyone in receipt of a notice must reply.
So what I see is, that the company's own records can be outdated 2 months or more and the Companies House's even a year.

RLE
A PSC can also be an entity (Registrable Relevant Legal Entity - RLE)
A RLE does not have to provide it's owner or director (only Name of the legal entity + The address of its registered or principal office +
The legal form of the entity and the law by which it is governed + If applicable, a register in which it appears (including details of the state) and its registration number + some details about it's power in the SLP, see Guidance_for_PSCv2)

A company can be a RLE, if one of these applies:
- keeps its own PSC register
- is subject to Chapter 5 of the Financial Conduct Authority’s DTRs rules
or
- has voting shares admitted to trading on a regulated market in the UK or European Economic Area (other than the UK) or on specified markets in Switzerland, the USA, Japan and Israel

A PSC is someone, if one of these applies:
- more than 25% of the shares
- more than 25% of the voting rights in the company
- you hold, the right to appoint or remove the majority of the directors
- the right to exercise, or actually exercises, significant influence or control

or

- an individual is a PSC of your company if they have then right to exercise, or actually exercises, significant influence or control over the activities of a trust or a firm, which in turn satisfies any of the first four conditions (all regardless if directly or indirectly, EG if shares or rights are held through a nominee, then you are still treated as holding those shares and could be a PSC. )

If I got it right, the SLP would hold it's own records and only send some of it to Companies House (not necessarily the residential address and the DoB).

These personal details a PSC needs to provide are:
  • Name
  • (full) Date of birth (not in public register)
  • Nationality
  • Country, state or part of the UK where you usually live
  • Service address
  • usual residential address (not in public register)
  • plus some details about the control that person has (see Guidance_for_PSCv2)

So that is the situation is theory in short.
A bit unclear are 4.5.2 and 4.5.3 - how can the Companies House provide DoB and residential address to law enforcement if the company does not have to provide that information?
Also... what is someone stays on hotels (has no usual residential address) ?
What if the (last know person) died and does not update records?
What is the SLP's records are outdated?
What if the SLP would not keep them (correctly) and if law enforcement asks provides what is working best at that point of time for the actual beneficial.
So what I see is, that this will not help too much against money laundering.
One might just choose his/her nominee carefully and that's it.
Or what if the actual beneficiary would pose as a nominee and provide details of some drug addict who claims on paper to be the PSC?
 
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#13
Reading this it means at the end of the day you have no privacy unless you change the PSC frequently or you have so many that they have less than 25% each. Makes it unusable for simple setups compared to what it was used to be in the past!
 
#14
Well, I did not check the fines / penalties for not complying, but I could imagine some people might find them tolerable ;)

I am afraid, if one wants to play by all rules, that will be tricky.
 
#15
Admin said:
RLE
A PSC can also be an entity (Registrable Relevant Legal Entity - RLE)
A RLE does not have to provide it's owner or director (only Name of the legal entity + The address of its registered or principal office +
The legal form of the entity and the law by which it is governed + If applicable, a register in which it appears (including details of the state) and its registration number + some details about it's power in the SLP, see Guidance_for_PSCv2)
Click to expand...
Wouldn't that mean that we could use a Belize or Seychelles company to be a PSC / RLE if I read it all correct? If so, it could still be anonymous or at least privacy is high?
 
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#16
Wouldn't it be too easy if you just use a Belize or Seychelles company and solve all problems? hehehe - of course I thought so too.

The RLE would have to register it's SLPs itself, than maybe yes.

Quote:
2.2.2 A legal entity is relevant in relation to the company if it meets any one or more of the conditions (i) to (v) set out in paragraph 2.1.2 and:
It keeps its own PSC register;
It is subject to Chapter 5 of the Financial Conduct Authority’s Disclosure and Transparency Rules (DTRs) 8 ; or
It has voting shares admitted to trading on a regulated market in the UK or European Economic Area (other than the UK) or on specified markets in Switzerland, the USA, Japan and Israel
2.2.3 A relevant legal entity (RLE) is registrable in relation to the company if it is the first relevant legal entity in the company’s ownership chain.
find more
here: https://www.gov.uk/government/uploa...hment_data/file/515721/Guidance_for_PSCv2.pdf
 
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#18
busdriver said:
Wouldn't it be too easy if you just use a Belize or Seychelles company and solve all problems? hehehe - of course I thought so too.

The RLE would have to register it's SLPs itself, than maybe yes.

Quote:
2.2.2 A legal entity is relevant in relation to the company if it meets any one or more of the conditions (i) to (v) set out in paragraph 2.1.2 and:
It keeps its own PSC register;
It is subject to Chapter 5 of the Financial Conduct Authority’s Disclosure and Transparency Rules (DTRs) 8 ; or
It has voting shares admitted to trading on a regulated market in the UK or European Economic Area (other than the UK) or on specified markets in Switzerland, the USA, Japan and Israel
2.2.3 A relevant legal entity (RLE) is registrable in relation to the company if it is the first relevant legal entity in the company’s ownership chain.
find more
here: https://www.gov.uk/government/uploa...hment_data/file/515721/Guidance_for_PSCv2.pdf
Click to expand...
That would be great and easy :) damn.. so if I read you correct there is no way to get a Scottish LLP do be anonymous unless you switch every 6 months?
 
#20
busdriver said:
not if you want to do it completely legally, no.

(But I guess having an anonymous PayPal account (as discussed on this site) is also not completely legal ... But I am not sure)
Click to expand...
ha ha ha :D You are totally right it seems we are all looking for something that isn't considered legal here!
 
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