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Characteristics

GENERAL
Type of entity
Scottish Limited Partnership (SLP)
Private Company Limited by shares
Public Limited Company
Legislation
Common law
Our time to establish a new company
3-15 days
Corporate taxation
0 %
Double taxation treaty access
Great Britain signed more than 147 agreements on avoidance of double taxation
SHARE CAPITAL OR EQUIVALENT
Standard currency
GBP
Permitted currencies
Any
Minimum paid up
1 GBP
DIRECTORS OR MANAGERS
Minimum number
1 director
Local required
No
Corporate directors permitted
Yes
Publicly accessible records
No
Location of meetings
Anywhere
SHAREHOLDERS OR MEMBERS
Minimum number
1 shareholder (2 participants for SLP)
Publicly accessible records
No
Location of meetings
Anywhere
COMPANY SECRETARY
Required
No
Local or qualified
No
ACCOUNTS
Requirement to prepare
Yes
Audit requirements
No
Requirement to file accounts
Yes
Publicly accessible accounts
No
OTHERS
Language
English
Exchange control
No
Change in domicile permitted
Yes

INTEREST OF THE JURISDICTION

Advantages of a company in Scotland

  • Scotland is a respectable European jurisdiction;
  • Some types of companies may not pay corporate income tax;
  • Simple registration procedure;
  • There are no requirements for compulsory audit;
  • Political and economic stability;
  • Lack of currency control.

Possible disadvantages of a company in Scotland

  • It is necessary to submit financial statements;
  • To minimize taxation, it is necessary to conduct activities outside the UK;
  • Partnership requires one partner with full responsibility.

Main info

Scotland is one of the four parts of the United Kingdom of Great Britain and Northern Ireland. Scotland is located in the north of Britain and borders with England. The west coast of Scotland is washed by the Atlantic Ocean, the eastern coast is washed by the North Sea. The area of ​​Scotland is just under 70 thousand km², and the population is more than 5 million people. The administrative center of Scotland is the city of Edinburgh, but the largest city is Glasgow, it also houses the main seaport of Scotland.

The head of state is the British monarch. In the political sphere, Scotland enjoys wide autonomy. For example, in Scotland has its own legislative body – the Parliament of Scotland. It consists of 129 members – deputies elected by the population in elections. The Parliament has the right to make decisions concerning the internal policy of Scotland within the framework of the delegated powers of the British Parliament. At the same time, the British Parliament can veto acts of the Scottish legislature.

The executive body is the government of Scotland, which is headed by the Prime minister of Scotland. The Prime minister is elected by the Scottish Parliament.

Territorially, the country is divided into areas in which local councils exercise power.

The Scottish legal system enjoys considerable independence from the rest of the UK, and therefore in many areas its own private and public law, which is often closer to the continental legal system, is applied.

The judicial system is represented by magistrates and district courts, the court of appeal in the form of sheriff courts, as well as the High Criminal Court of Scotland and the Supreme Civil Court of the Sessional. The final instance in all cases is the Supreme Court of Great Britain.

Types of companies and incorporation procedure

One of the most preferred for doing business in Scotland is the Scottish Limited Partnership (SLP).

01. Scottish Limited Partnership

The main advantage of this form of business organization is that if the partnership does not work and does not receive income in the UK, and the general partner is not a resident of the UK, it is exempt from corporate profit tax and capital gains tax.

To create an SLP, you need at least 2 partners. SLP partners can be residents of any jurisdiction, individuals or legal entities, but one of the partners must be unlimitedly responsible. In addition to the general partner of SLP, there must be at least one partner with limited liability. He is accountable to the creditors of the partnership only within the limits of his contribution to the capital of SLP. Such a partner has no right to participate in the management of the partnership.

SLP is registered with the Registrar of Companies in Edinburgh. SLP can enter into contracts and own assets on its own behalf. It should be noted that the partnership in Scotland is regarded as a separate entity from its participants, and accordingly, the participants are not responsible for the debts of the partnership. Another advantage is the lack of submission of annual financial statements and the need for an audit. If the partnership does not operate in the UK, it is sufficient to keep accounting records.

02. Limited Liability Company

In addition, the popular form of doing business in Scotland is a Limited Liability Company (Private Company Limited). Such a company is easily registered, its shareholders can be individuals and legal entities (including offshore companies). Requires at least one shareholder and one director. The liability of shareholders is limited to their contribution to the authorized capital.

03. Joint stock company

In Scotland, you can create a joint stock company (Public Limited Company). However, it should be borne in mind that its minimum authorized capital is 50,000 GDP. A secretary and two directors are required. An open joint stock company may sell shares on a stock exchange. This type of company is more suitable for large enterprises..

Taxation

  • Scotland is part of the UK, so the general corporate income tax rate applies here in the rest of the UK, and is 19%. Scottish taxation is generally governed by British law.

    However, using some organizational and legal forms of doing business, you can take advantage of the Scottish tax laws and reduce taxes to 0%. In particular, this applies to UK non-residents who operate outside of this jurisdiction.

  • Taxable profit includes all types of income in accordance with accounting with some adjustments, from which allowable costs are deducted.

    Income from dividends from other companies is also taxed, although there are many exceptions.

    The Scottish partnerships, unlike their English counterparts, have a separate legal existence from their partners. The partnership does not pay taxes if it does not operate in the UK, but each partner is taxed on its share of business profits in the country in which it is a resident. It is very convenient if the partner is a company registered in an offshore jurisdiction.

  • The Value Added Tax (VAT) is a tax similar to the VAT system adopted in all EU countries. The Scottish VAT rate is 20%.

Banking system and economy overview

The economy of Scotland is characterized by stability and sustainability, a policy favorable for entrepreneurship and investment. Scotland is considered the most profitable region in the UK, there is a quality workforce.

In Scotland, a developed electricity market, electronics industry, shipbuilding, automotive, oil, light industry, fishing, whiskey production and tourism.

Scotland has a well-developed financial and banking sector, technology and communications. Edinburgh is an important financial center not only in the UK, but also in Europe. The Scottish Royal Bank and several other banks have the right to issue banknotes.

In Scotland, all conditions for effective business are created, the infrastructure is developed, and tax tools allow optimizing the company’s revenues. It is a stable region that attracts investors around the world. First, this is because Scotland is part of one of the most developed countries in Europe and the world – Great Britain. But Scotland also has its own distinctive features, which give it the reputation of a European offshore..

HOW TO
PROCEED

To incorporate or purchase a company the following documentation should be provided:

01

A completed application form signed by the company or by the representative

03

A personal bill, which is less than 3 months old from the date of the application

02

Copy of valid passport

04

Payment of our fees

Note: additional documents may be required depending on the certain offshore bank.

Set-up time: From the moment, we are in possession of all required documents:

3 days

Incorporation of
a company or purchase
of an existing company

15 days

Delivery of the original
company documents

3 weeks

Offshore Bank: offshore
bank account opening