Tax Free Solution For International Trade

August 13, 2008

The United Kingdom has long been regarded as a tax effective jurisdiction for people not doing any trade within the UK. Much like the US LLC (such as a Delaware LLC – but my favourite is the New York LLC) – so long as you do not trade in the UK or derive profits from the UK – you can form a structure with a UK presence but reap the profits – tax free!

The UK Limited Liability Partnership (UK LLP) is an excellent structure suitable for worldwide trading and international business. The UK LLP allows for a real UK presence, with all the normal benefits of a UK legal structure and UK bank accounts – but with a tax effective solution to the profits.

The UK LLP is ‘fiscally transparent’ – meaning that the members of the Partnership (and not the Partnership itself) are taxed on any profits of the LLP. Therefore, if the members are incorporated in a low or nil tax jurisdiction, then the profits can be re-distributed according to the tax benefits of the jurisdiction.

The UK LLP is a proven and established structure ideal for maximising profits from International trade or business, whilst allowing for those profits to be kept in an offshore jurisdiction and invested or redistributed as you see fit.


One Response to “Tax Free Solution For International Trade”

  1. Alexander Rose on April 20th, 2012 11:44 pm

    So how transparent is transparent in the UK. I am told by my accountant that if an LLP does business only abroad then the foreign shareholders may be subject to witholding tax as “Foreign companies” which then needs to be recovered through a DTT. Is that right? If not, and two UK (ir Irish) resident “non doms” do business wholly outside the UK, is the LLP’s rofit share in this caes “foreign” and do the members enjoy their non dom status still or is that considered UK income?

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