Partnership in Ireland or the UK? Comparison with LTD: pros and cons
It's a big mistake to think of Britain and Ireland as of one jurisdiction. Despite their close proximity and similarity of traditions and mentality, these countries have different legal frameworks and starting conditions for foreign businesses. When choosing the legal form for a future company, you should bear in mind that opening an LP in Ireland would be easier than registering an LLP or LTD in the UK.
LLP and LTD in the United Kingdom: features and benefits
LLP and LTD (PLC) are the most common types of companies in Britain. It is clear that LTD is the equivalent of a limited liability company, simple and understandable to everyone; LLP is a beneficial form of partnership.
Limited Liability Partnership, for example, may not legally pay corporate taxes in the jurisdiction. The size of its registration capital is not limited and may be minimal. It’s true, that types of possible activities are limited to the sphere of services and trade. The financial responsibility of partners is established individually and is fixed in the founding documents of the company. Participants are equal and each of them pays taxes individually.
In the case of Private Limited Company, the minimum size of the authorized capital is 2 pounds sterling. The list of allowed activities is much wider, but it will be impossible to avoid the application of progressive tax rate from 10% to 30% in the country.
Registration of LLP in the UK 2020 will require the entrepreneur to know the law, as well as financial and temporary investments. Qualified assistance of IT-OFFSHORE experts will reduce these costs and make the process of acquiring a foreign company easy and enjoyable. The advice of our experts is so personal and profound that sometimes in the course of cooperation clients rethink their goals and needs, refuse the idea of creating LLP and decide to buy LTD in the UK in 2020.
LP in Ireland
Limited Partners, a limited liability partnership established in Ireland, is a real godsend for entrepreneurs who want to legally reduce their tax burden. Ireland has a crystal clear reputation in the global economic community, despite its loyal legislative framework. Only non-residents can create LPs in this jurisdiction. This legal form does not require a tax status, so partners pay taxes as individuals in the countries where they are citizens.
Members of the Irish LP can count on confidentiality, unlike the founders of the English LLP and LTD; their data is only available to the registration agent. There is no minimum starting capital for simple partnerships in the country, the junior partner is financially liable for the amount of its contribution and the general partner is responsible for all obligations. Another indisputable advantage of Irish LPs is the low cost of registration and the ability to do so within a few working days.