Limited Liability Partnership (LLP) in United Kingdom
LLP · Formation from $134
Last verified: June 13, 2026
Corporate Tax
0.0%
State Tax
0.0%
Formation Cost
$134
Annual Fee
$67
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Professional services firms (lawyers, accountants, consultants) wanting limited liability with partnership tax treatment.
- Joint ventures between two or more companies or individuals needing a flexible profit-sharing structure.
- International entrepreneurs seeking a reputable European entity without entity-level corporate taxation.
- Investment funds or real estate ventures where pass-through taxation is highly beneficial.
Who Should Avoid This?
Scenarios where another structure may be better
- Solo founders, as an LLP strictly requires a minimum of two members.
- Startups planning to raise venture capital, as investors strongly prefer the traditional LTD (private limited company) structure for issuing shares.
- Founders who require complete privacy, as member details and financial accounts are published on the public register.
Advantages
- +Tax transparency: The LLP itself does not pay corporate tax; profits are taxed as personal income of the members.
- +Limited liability: Members are protected from the debts and liabilities of the partnership, unlike a traditional general partnership.
- +Flexibility in management: The internal structure and profit-sharing can be easily customized through an LLP Agreement without public disclosure.
- +No minimum capital requirement: You can form an LLP with zero initial capital.
- +Global reputation: The UK is a highly respected jurisdiction with a robust legal system and excellent banking infrastructure.
Disadvantages
- -Public disclosure: The names of designated members and Persons with Significant Control (PSCs) are publicly available on the Companies House register.
- -Financial transparency: LLPs must file annual accounts publicly, which means financial performance is visible to anyone.
- -Minimum of two members: An LLP requires at least two designated members at all times; it cannot be a single-member entity.
- -Self-employment taxes: UK-resident members are typically treated as self-employed and are subject to National Insurance Contributions (NICs) on their profit share.
- -Administrative burden: Requires filing an annual confirmation statement, annual accounts, and maintaining a registered office in the UK.
Formation Steps
Choose a unique name: Ensure the name ends with 'Limited Liability Partnership' or 'LLP' and is not already registered at Companies House.
Appoint designated members: Identify at least two designated members who will take legal responsibility for the LLP's compliance.
Set up a registered office: Obtain a physical address in the UK (England/Wales, Scotland, or Northern Ireland) to serve as the official registered office.
Draft an LLP Agreement: Create a private internal agreement detailing profit sharing, responsibilities, and dispute resolution (not filed publicly).
Identify PSCs: Determine the Persons with Significant Control (those holding more than 25% of voting rights or capital) for the public register.
Submit application (Form LL IN01): File the incorporation documents and pay the £100 fee to Companies House digitally or via a formation agent.
Register for taxes: Register the LLP with HMRC for Self Assessment and, if applicable, VAT and PAYE.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| Companies House Incorporation Fee | One-time | $134 |
| Formation Agency Fee (includes 1st year registered office) | One-time | $150 |
| Annual Registered Office Address | Annual | $100 |
| Companies House Confirmation Statement Fee | Annual | $67 |
| Annual Accounting & Tax Return | Annual | $500 |
| First year total | $284 | |
| Annual ongoing | $667 | |
Real-World Examples
Typical use cases for this entity type
- Major global law firms and accounting networks (e.g., PwC, Ernst & Young, Clifford Chance) operate as UK LLPs to protect individual partners from firm-wide liabilities.
- A joint venture between a UK tech company and a US marketing agency, using an LLP to easily distribute profits without double taxation.
- Two non-UK resident consultants providing international services, using a UK LLP to bill clients globally while paying personal income tax only in their home countries.
Common Mistakes
Pitfalls to avoid during setup and operations
- Failing to draft a formal LLP Agreement, which means the default (and often unsuitable) provisions of the LLP Act 2000 will apply.
- Missing the deadline for filing annual accounts or the confirmation statement, leading to automatic penalties and potential strike-off.
- Assuming the LLP provides complete tax immunity; members must still declare and pay taxes on their profit share in their tax residence.
- Using a residential address as the registered office, inadvertently making their home address permanently public on Companies House.
- Not registering for VAT when the LLP's taxable turnover exceeds the £90,000 threshold.
Other entity types
Other formation options in United Kingdom
Private Limited Company (LTD)
- Tax
- 25.0%
- Formation
- $134
Scottish Limited Partnership
- Tax
- 0.0%
- Formation
- $127
Public Limited Company (PLC)
- Tax
- 25.0%
- Formation
- $134
Company Limited by Guarantee
- Tax
- 25.0%
- Formation
- $125
UK Establishment (Branch)
- Tax
- 25.0%
- Formation
- $157
Unlimited Company
- Tax
- 25.0%
- Formation
- $127
Community Interest Company
- Tax
- 25.0%
- Formation
- $146
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇬🇧 Limited Liability Partnership (LLP)(LLP) | 0.0% | $134 | $67 |
FAQ
Can a non-UK resident form a UK LLP?
Yes, there are no residency or nationality requirements for LLP members. However, the LLP must have a UK registered office.
Does a UK LLP pay corporate tax?
No, an LLP is tax-transparent. Profits are passed through to the members, who pay income tax in their respective countries of tax residence.
Can a company be a member of an LLP?
Yes, corporate entities can be members (including designated members) of a UK LLP.
What is the difference between an LTD and an LLP in the UK?
An LTD pays corporate tax and distributes dividends to shareholders, while an LLP is tax-transparent and distributes pre-tax profits to members.
Are the details of LLP members public?
Yes, the names, service addresses, and month/year of birth of designated members and PSCs are publicly accessible on Companies House.
Do I need to file financial accounts?
Yes, UK LLPs must prepare and file annual financial accounts with Companies House, which become part of the public record.
How many members do I need to start an LLP?
You need a minimum of two designated members to incorporate and maintain a UK LLP.
Can I use a virtual office for my LLP?
Yes, you can use a virtual office or a formation agent's address as your registered office, provided it is a physical location in the UK where official mail can be delivered.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
An LLP is tax-transparent and does not pay corporate tax itself. Profits are distributed to members who are taxed individually. If a member is a corporation, it pays the UK corporate tax rate (19% to 25% for 2026/27).
Personal Income Tax (Top rate: 45.0%)
| From | To | Rate |
|---|---|---|
| $0 | $12,570 | 0.0% |
| $12,571 | $50,270 | 20.0% |
| $50,271 | $125,140 | 40.0% |
| $125,141 | No limit | 45.0% |
Individual LLP members pay personal income tax on their share of the profits. The standard personal allowance is £12,570, which decreases by £1 for every £2 earned over £100,000.
Capital Gains Tax
24.0%
Individual members pay CGT on the disposal of their partnership interest or LLP assets. For 2026/27, the annual exemption is £3,000. The standard CGT rate is 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers.
VAT / GST
20.0%
Registration Threshold: GBP90,000
Non-UK businesses supplying digital services to UK consumers must register for UK VAT regardless of the threshold (no threshold applies).
Withholding Tax
The UK does not levy withholding tax on dividends. The 20% domestic rate on interest and royalties can often be reduced or eliminated under the UK's extensive double tax treaty network.
Payroll & Social Security
For regular employees, the employer NIC rate is 15% and the employee rate is 8%. However, LLP members are typically treated as self-employed and pay Class 4 NICs at 6% on profits between £12,570 and £50,270, and 2% above that.
Other Taxes
Stamp Duty Reserve Tax (SDRT)
A 0.5% tax is generally payable on the purchase of shares in a UK company. However, transfers of LLP interests are usually exempt unless the LLP holds shares or real estate.
Business Rates
If the LLP occupies commercial property in the UK, it will be liable for business rates based on the property's 'rateable value'.
Incentives & Support
Freeport and Investment Zone Tax Reliefs
Tax reliefs for businesses operating within designated Freeports or Investment Zones in the UK.
Relief from employer National Insurance contributions, business rates relief, and enhanced capital allowances.
Eligibility: The LLP must have physical premises and conduct qualifying business activities within a designated UK Freeport or Investment Zone.
Formation Requirements
Minimum Capital
No requirement
There is no minimum capital requirement to form a UK LLP.
Local Director
Not Required
No UK resident member is required, but the LLP must have at least two 'designated members' who assume legal responsibility.
Registered Office
Required
Virtual office allowed. $50-300/year
Notarization Required
No
Power of Attorney (Remote)
Not Required
UK LLP formation can be completed entirely online without a Power of Attorney.
Timeline
Standard: 1-2 business days days
Expedited: Same day days ($130)
Required Documents
- 1Proof of Identity (Passport copy)
- 2Proof of Address (Utility bill or bank statement)
- 3LLP Agreement (Internal partnership agreement)
- 4Form LL IN01 (Application to register)
- 5Details of Persons with Significant Control (PSC)
Compliance & Reporting
Annual Filings
Confirmation Statement (CS01)
Penalty: Failure to file is a criminal offense and the LLP may be struck off the register.
Annual Accounts
Penalty: Automatic late filing penalties ranging from £150 to £1,500 depending on the delay.
Audit Requirement
Not Required
Exempt if meeting 2 of 3 criteria: Turnover ≤ £15m, Balance sheet ≤ £7.5m, Employees ≤ 50 (2026 thresholds).
Accounting Standard
UK GAAP (FRS 102 / FRS 105) or IFRS
Tax Return Deadline
31 January following the end of the tax year for online Self Assessment returns (Partnership and individual).
VAT Filing Frequency
Quarterly (if registered)
Data Protection
Must comply with UK GDPR. Registration with the ICO is required if processing personal data.
Banking & Payments
Wise
Remote-friendlyExcellent for multi-currency accounts and international transfers. Highly accessible for non-resident LLP members.
Revolut Business
Remote-friendlyOffers robust digital banking features, corporate cards, and API integrations. Requires thorough compliance checks for non-residents.
Tide
Remote-friendlyA popular UK-based digital business account. While primarily for UK residents, they support companies with foreign directors under certain conditions.
Payoneer
Remote-friendlyIdeal for e-commerce and digital service businesses needing local receiving accounts in GBP, USD, and EUR.
Barclays
A traditional high-street bank offering comprehensive corporate services. Requires a UK resident member and an in-person branch visit.
Payment Gateways
Stripe, PayPal, GoCardless, Square, Paddle, Adyen
Currency
GBP
Multi-Currency: Supported
Account Opening
Opening a business bank account in the UK can be challenging for non-resident founders due to strict anti-money laundering (AML) regulations. Traditional high-street banks typically require a UK resident director and an in-person visit. However, digital platforms like Wise, Revolut Business, and Tide offer remote account opening options for UK LLPs, provided all members pass identity and compliance checks.
Practical Information
Timezone
UTC+0 to UTC+1
Business Language
English
Legal System
Common law
Ease of Doing Business
#8
IP Protection
The UK offers robust intellectual property protection, including patents, trademarks, and copyrights, governed by the Intellectual Property Office (IPO). It is a member of major international IP treaties, ensuring strong enforcement and global recognition.
Double Tax Treaties
130 countries
Notable treaties: United States, Germany, France, Japan, Australia, Canada, Switzerland
Visa & Residency Options
Innovator Founder Visa
Designed for entrepreneurs seeking to establish an innovative, viable, and scalable business in the UK. Requires endorsement from an approved body but has no minimum investment threshold.
Global Talent Visa
Aimed at highly skilled individuals in tech, science, arts, and academia. Requires an endorsement proving the applicant is a recognized or emerging leader in their field.
UK Expansion Worker Visa
Allows overseas businesses to send a senior manager or specialist employee to the UK to set up a branch or subsidiary of the foreign company.
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Changelog
Data updates and changes on this page
Updated Companies House incorporation and confirmation statement fees to reflect the February 2026 increases (£100 for incorporation, £50 for confirmation statement).
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