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.
Scotland's businesses are governed by British law:
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.
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.
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.
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.
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.