UK LLP Company formation
To form a Limited Liability Partnership (LLP) in the United Kingdom, you need to follow specific steps and meet legal requirements. Here's a step-by-step guide to forming an LLP in the UK:
1. Choose a Unique Name:
Select a unique name for your LLP. Ensure that the name you choose is not already in use by another business. You can check the availability of your chosen name on the Companies House website.
1. Registered Office Address:
You'll need a registered office address in the UK. This address will be used for official documents and legal notices. It doesn't have to be your primary business address, but it must be a valid UK address.
1. Appoint Designated Members:
You must appoint at least two designated members when forming an LLP. Designated members have additional legal responsibilities, including filing annual accounts and the annual confirmation statement (previously known as the annual return). All members' details, including their names and addresses, must be provided.
1. Create an LLP Agreement:
Although not a legal requirement, it's highly recommended to create an LLP agreement. This is a written agreement that outlines how the LLP will be managed and operated, including details on profit-sharing, decision-making, and member responsibilities. The LLP agreement is an internal document and doesn't need to be submitted to Companies House, but it should be kept with your business records.
1. Register with Companies House:
You can register your LLP online via the Companies House website or by postal application. To register, you'll need to provide the following information:
* LLP name and registered office address.
* Details of all members and designated members, including their names and addresses.
* A brief description of the LLP's main business activities.
* If applicable, the location of any place of business outside the UK.
* Whether your LLP is a Scottish Limited Liability Partnership (SLLP), which has some differences in terms of registration and compliance with Companies House.
1. Pay the Registration Fee:
There is a registration fee associated with forming an LLP. The fee amount may vary depending on the method of application (online or by post). Be sure to check the current fee schedule on the Companies House website.
1. Receive Certificate of Incorporation:
Once your application and fee have been processed and everything is in order, Companies House will issue a Certificate of Incorporation. This certificate confirms that your LLP is legally registered.
1. Register for Taxes:
After registering your LLP, you'll need to register for taxes, including VAT (if your taxable turnover exceeds the threshold) and potentially other taxes depending on your business activities.
1. Ongoing Compliance:
LLPs have ongoing compliance requirements, including filing annual accounts and an annual confirmation statement (previously known as the annual return) with Companies House. Designated members are responsible for ensuring these filings are made on time.
1. Business Bank Account:
It's advisable to open a business bank account for your LLP to keep business finances separate from personal finances.