Open an LLP and Reduce Your Risks

Open a limited liability partnership and reduce your risks: there are many ways to open and manage an LLP by foreign customers. Let us say, that your main business activities are located in Asia, but you would like to use the facilities of the UK Law to protect your interests by using the  legal system including the UK Courts. In such a case, you should think about the following structure of your British LLP: one designated member of your limited liability partnership is the UK managing company with the effective control and corporate management in the United Kingdom.

We can provide such corporate members, or we can register a new company here, with the registered office address and the nominee director, and then appoint this limited company as one of the designated member of your LLP, which could hold only five per cent in your limited liability partnership. The second member of the limited liability partnership can be the company incorporated in Hong Kong. It will make more logical and business science if you are buying services or goods in Asia (China, Malaysia, etc.), and then selling it to the EU market (not to the UK market). Your business partners will be more impressed if you will be doing business with them as the UK registered business, where one of your partners is the Hong Kong incorporated company, which would facilitate for UK and Hong Kong law protection of the LLP.

When the LLP will generate profits, it will be distributed into two different proportions, five percent will be distributed to the UK company as the designated member, and this particular company should pay tax on its income, the second part goes to the Hong Kong company, which will be tax free.

The main reason to do so, is - if something goes wrong with your suppliers, partners, or buyers, you can use the Hong Kong or/and the British Court to file the case against the opposite party. You can only submit the case in the UK, if you are resident here, or the claim arises in the Great Britain, if your LLP does not qualify, as resident of the UK, then the Court cannot be used as a shield for your protection. However, if one of your LLP partner is the resident company, then you will be afforded such protection!