Scottish limited partnership registration advantages: there are number of key difference between the laws that govern limited partnerships in Scotland and those that exist in England and Wales. When registering a Scottish limited partnership it is vitally important you understand these differences and you should always seek the expertise of a limited partnership formation agent during the registration process.
Like with more general partnerships, a limited partnership in Scotland must have at least two partners who are involved in the running of a business or fund. However, a key distinction between regular partnerships and limited ones is the way in which liability is divided.
In a general partnership, all partners are jointly and severally liable for any outstanding debts. However, in a limited partnership you can specify the type of liability a partner carries.
For example, general partners are liable for debts and the obligations of the partnership, but limited partners are only liable for their contributions. A limited partner also cannot influence the way the partnership is managed, with all such functions falling into the hands of the general partner(s). This is sometimes referred to as 'passive investment'.
Registering as Scottish limited partnership can be much more advantageous than one set up south of the border. One unique feature in Scotland is the fact that the partnerships are separate legal entities. This enables them to own assets in their own right, sue or be sued as a business, enter into contracts, purchase properties and borrow sums.
Another major benefit of a Scottish limited partnership registrationis tax transparency. Nothing is paid by the limited partnership itself, with respective partners being individually assessed for taxation. Typically, the limited partner will only receive a percentage of any profits and be taxed solely on this sum. Remaining gains will go to the general partner.
If a limited partnership registration in Scotland sounds right for you, then Coddan Ltd can help. Our team is experienced at dealing with limited partnership registrations across the UK and can provide a fast and efficient service to suit your requirements. Our consultants can talk you through the range of Scottish limited partnership startup packages available and ensure you stay in line with the laws set out under the Limited Partnership Act 1907.
Scottish limited partnerships formation advantages are available to businesspersons from overseas, so we can help you even if you do not have a registered office address in Scotland. In fact, we can even provide you with a registered address if required.
Once all requirements have been met the Registrar of Companies in Scotland will issue you with a certificate of limited partnership registration, but Coddan's Scottish limited partnership establishment expert support does not have to end at this stage. We offer extensive post-formation services designed to help your business remain as effective as possible.