Company in Scotland

General information

Tax rate

Time of establishment of the company

Minimum capital

Company incorporation in Scotland

Scotland has based its economy on a capitalist system with very little state intervention. With a leading financial center in Edinburgh, Scotland is the base for many large financial sector businesses, such as the Royal Bank of Scotland. Although the country is essentially turned to banking and financial services, the fact remains that since the 20th century, Scotland has opened the door to modernization, with the development of technological industries.

Types of companies

There are several types of businesses in Scotland:

 Limited Liability Partnership (LLP)

 Public Limited Company (PLC)

• Limited partnership

• European Economic Interest Grouping (GEIE)

• European Company (SE)

LLPs are usually used by foreign companies to become established in the country.

Indeed, LLP corporations whose members are outside the UK and who are not conducting any business in the UK are not considered taxable corporations unless they choose to be. According to the British general tax procedures, revenue from an LLP is treated as its members’ income, and is therefore taxable in the country of residence of members (usually the jurisdiction of incorporation, when members are companies), according to the proportion of income held by each member.

To establish a clear position of non-residence for tax purposes, we recommend that members of a “non-resident LLP” be companies located in tax-advantageous jurisdictions outside the European Union.

Tax system

As part of its economic strategy published on 13 November 2007, Scotland aims to provide a favorable business environment to encourage investment, innovation, and skills development. Entrepreneurs enjoy a high standard of living, together with attractive welfare contributions.

Foreign investors are offered a wide range of financial incentives in Scotland. In particular, there are loans and grants for all expenditures relating to environmental protection, as well as tax credits for R&D expenditures.

Accounting

Companies are required to prepare a balance sheet, an income statement, and a schedule. According to the company structure, the annual account audit and publication will be mandatory.

Tax rate

• Income tax: 33.5% from £ 300,000 to £ 1,200,000, 31% beyond that • Tax on capital gains: 18% • Tax on dividends: 10% up to £ 37,400 of dividends,32.5% up to £ 150,000, and 42.5% beyond that • VAT: 17,5%“”.

Minimum capital

50.000 £ (58.648 )

Shareholders

Two partners minimum, at least one of whom is named “General Partner” (Active Partner)

Foreign shareholders

Yes

Foreign holding

Yes

Legal obligations

Mandatory audit of annual accounts

Annual fees starting from the 2nd year

Provision of nominee shareholders, head office, annotated POA, preparation and submission of the annual report and the declaration of nil income Cost: 1,300 €+ VAT and shipping

Deadline

12 to 15 working days from the receipt of all documents 3 to 5 days for the available turnkey company mail

Headquarters

Business address, telephone transfer, fax, and mail. Possibility of having a physical office (prices vary depending on demand)

Banking

For Scottish LP companies active outside the UK, we recommend opening an account in banks located in Latvia, Estonia, Denmark, or Cyprus. Please contact us for more information.

Accounting

Mandatory annual financial report, schedules, and management reporting, based on an estimated number of monthly bills and a forecast of annual turnover.

Company registration procedure

Taxes and finances

Local labor law

Other information