Scotland Offshore Registration (LLP)
or not offshore after all?
Scotland is an international centre for finance, which is not the usual offshore zone, meaning that it is not at all like Belize, Panama and so on. But it is very often considered among businessmen who conduct their main business in Ukraine, Belarus and Russia because for non-residents from these countries much simplified conditions apply in terms of taxation.
A firm in Scotland is a full-fledged legal entity in Europe. Companies from Scotland enjoy a very high status when operating internationally. In such an area, starting a new business and maintaining it with quality service is just a little something to look forward to. Digging deeper into this subject, you can see the incredible benefits.
So what are the benefits?
As you may have realised – this is not a classic offshore zone, if you can even call Scotland such a zone. Business in Scotland has a number of advantages that attract businessmen from other countries even more than business in any other country.
Let’s get down to the more interesting details already. Advantages:
- There may be a zero rate of taxation for certain types of businesses
- High reputation of the country among other countries
- No citizenship requirements for business partners
- The business partner may be a legal entity or an individual
- Shares are issued without a par value.
- No requirements for the payment of share capital
- Limited Liability Partnerships can file zero returns and pay no tax (only if all members are non-residents of Scotland)
- In Scotland an offshore team is a separate legal entity and this means that the company has full legal rights to own assets or real estate, as well as being someone who files a court case or is a defendant in a lawsuit. You can also make investments or enter into contracts.
- The initial capital and its amount are not required.
- The documents of a body may be kept outside Scotland i.e. there is no requirement to keep them
- Confidentiality. The real name will only be known to the register where the company is registered
- What does it take to incorporate?
- If you understand that you want to set up a business in Scotland, you need to:
- To come up with a name for the future company (it is advisable to come up with about three names to fit the description of what the corporation will do)
- Subject matter, i.e. what the company does (activities will need to be specified for incorporation)
- Approval of the registered capital (it is advisable not to be below the authorised amount, especially if you intend to be active from the outset)
- Information on the team (passport details of the director and founder are required for registration, copies are sufficient. Statutory documents and the decision to join the business are also needed for registration, this applies to legal entities. Important note: all documents must be translated and notarised)
More detailed information on the registration, namely documentation, is required:
On the part of an individual:
- Company registration application form
- The filled out application form
- Copies of passports of the shareholders
- Proof of residence (last 3 months’ statements of utilities can be used)
From the side of the legal entity:
- Company registration form
On the part of the company:
- Company registration certificate
- Memorandum of Association
- articles of association
- Information on shareholders and directors
- Certificate of good standing of the company
How does registration take place?
Once you have collected the documents listed above, they are checked. Once all the documents have been thoroughly checked they need to be sent to the Registry. Usually, such registration takes only a day, at most. Once the company is registered, a successful registration packet will be sent to you, which must be handed to you personally shortly afterwards.
Amongst the list of those documents will be:
- Company registration certificate
- Company formation document
- Agreement among the partners of the company
- Minutes of the first meeting
- Company share certificates
- Company seal
Important to note: you must be licensed to conduct insurance, banking, investment or finance business.
Does the company need a registered office?
Yes it is necessary, but there are solutions to the problem, which can be solved in two ways. The first one is to rent an office in the territory of the country where the business is being registered, i.e. Scotland. The second option is to set up a virtual office, and this will not bring any difficulties or problems, except for the registration itself. Which office of the company it is, is up to you to choose.
Scottish companies, once they have formally registered their business, have the attractive privilege of being able to open a bank account. It may come as a surprise but it is an opportunity to open a bank account with banks in Switzerland, Cyprus, Latvia, which are known for being offshore banks.
Scotland as an offshore zone
Maybe you’ve heard the term “offshore Scotland” very often in the press or in life, but is it really true? Officially, Scotland has never been an offshore jurisdiction when it existed, especially if you call it “purely offshore” – that doesn’t make sense because it’s not entirely wrong. Scotland is a country dominated by preferential taxation, which roughly speaking gives you the opportunity to enter your business tax-free if certain conditions are met. Also having the right corporate structure in place can get you out by having your company enjoy all the benefits.
Scotland is a very good choice of jurisdiction for setting up a business with little or no taxation and to exempt yourself and your corporation from annual reports. The most positive thing is that your chances of opening an account with an overseas bank are increasing because if you apply for an offshore company they will soon be refused, but Scottish companies are not offshore and therefore cannot be refused for this reason.
General information about Scotland
You must start by stating that Scotland is a country in the United Kingdom of Great Britain and Northern Ireland and is a devolved part. This information is needed to clearly understand for yourself that Scotland is directly dependent on England, both in language and currency. From this we conclude if the currency in England is the pound sterling, then so is it in Scotland.
Important: there are no currency controls in LLP Scotland.
The same issue is related to language, the official language in Scotland is English. The company register in Scotland is accessible to all and the protection of all client information is ensured by common law principles.
Thus, after reading this article, you can fully understand how business in Scotland can have a lot of advantages in itself, which are aimed at the benefit of businessmen and their corporations and, perhaps, you will think about the country where you want to make money. You can already say with confidence and understand that Scotland is not an offshore zone, but a country with quite advantageous benefits that help all businesses.