Do You Like BlauStein?
BlauStein: Interesting Facts
Tax-free British Partnerships
Limited Liability Partnership (LLP) – is an independent legal entity registered in accordance with UK laws.
The main reason for high popularity of LLP in international tax planning – is complete absence of corporate taxation. The whole tax burden is placed on the members – founders of partnership.
According to UK legislation, members of LLP pay taxes in the places of their tax-residence. The principle of taxation implies that the income of each individual member is taxed, instead of ultimate income of the LLP.
Thus, LLP is a perfect instrument for the maintenance of tax-free business via a company within European jurisdiction. For this, two main requirements should be fulfilled:
- Offshore companies are used as members of LLP (e.g. Gibraltar, Belize, Jersey, Hong-Kong)
- LLP is not involved in activities on the UK territory.
LLP’s might be involved in almost all kinds of business. Due to the high respectability of UK companies, partnerships (LLP) are often used in trade and agent schemes.
BlauStein: Consultants for the corporate structuring using LLP partnerships.