Company Formation in the United Kingdom (LP)
Service Name
Start
Pro
Elite
Company Name Check and Reservation
Company Formation including Government Fees
Company Secretarial Services for the First Year
Incorporation Documents Package
Registered Office Address for 1 Year
Nominee Services for 1 Year
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Corporate Bank Account Opening
–
–
Total Cost
€1050
€1950
€2450
Introduction to UK LP Company Formation
The United Kingdom (UK) remains one of the most prestigious jurisdictions for international business, offering a wide range of corporate structures. Among them, the UK Limited Partnership (LP) stands out as a flexible, tax-transparent, and internationally recognized business entity.
Company formation in the United Kingdom (LP) is particularly attractive to entrepreneurs, investors, and consultants who need a legally sound yet tax-efficient structure. UK LPs are often used for international trade, holding structures, investment funds, and joint ventures.
This guide explores everything you need to know about UK LP registration in 2025: benefits, requirements, incorporation process, taxation, costs, and compliance.
What is a UK Limited Partnership (LP)?
A Limited Partnership (LP) is a business structure established under the Limited Partnerships Act 1907. It requires at least two partners:
General Partner – responsible for managing the business and liable for its debts.
Limited Partner – contributes capital but has limited liability and cannot take part in daily management.
This dual-partner structure makes LPs popular for investment funds, real estate projects, and international business structures.
Benefits of Forming a UK LP
Tax Transparency
Unlike corporations, a UK LP is considered tax-transparent, meaning profits are not taxed at the entity level but flow through to partners, who pay taxes according to their residency.Prestige and Credibility
The United Kingdom is a globally respected jurisdiction, enhancing trust with banks, investors, and business partners.Flexibility
UK LPs can be used for a variety of purposes, including holding companies, asset protection, and joint ventures.Low Setup Costs
Compared to other jurisdictions, the costs of forming and maintaining a UK LP are relatively low.Confidentiality
While certain information is filed with Companies House, limited partners’ details do not need to be publicly disclosed.No Minimum Capital
There is no statutory minimum capital requirement for LP formation.International Use
UK LPs are widely accepted globally, making them ideal for cross-border transactions.
Requirements for UK LP Company Formation
To register an LP in the United Kingdom, the following requirements must be met:
Partners: Minimum of two (at least one general partner and one limited partner).
Residency: Partners may be individuals or legal entities, UK residents or foreigners.
Name: Must be unique and approved by Companies House.
Registered Office: Must be located in the UK.
Filing: Limited information filed with Companies House.
Agreement: Partnership Agreement recommended to define rights and obligations.
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Step-by-Step Process of Registering a UK LP
Choose a Name – Conduct a name search at Companies House.
Prepare Partnership Agreement – Outlining rights, responsibilities, and capital contributions.
Appoint Partners – At least one general partner and one limited partner.
Registered Office – Secure a UK registered office address.
Submit Application – File Form LP5 with Companies House.
Certificate of Registration – Issued once the LP is officially registered.
Open Bank Account – Local or international banking for transactions.
Tax & VAT Registration – If applicable to business activities.
Timeframe: 3–10 business days.
Taxation of UK Limited Partnerships
One of the main advantages of a UK LP is tax transparency.
No Corporate Tax – The LP itself does not pay corporate income tax.
Partner-Level Taxation – Each partner pays tax on their share of profits in their country of residence.
VAT – If the LP engages in taxable supplies in the UK, VAT registration may be required.
Non-Resident Partners – Foreign partners are not subject to UK tax on non-UK income.
This makes the UK LP highly attractive for international business structures.
Compliance Requirements
Annual Filing – Unlike companies, LPs have no statutory obligation to file annual returns or financial statements (unless carrying on business in the UK).
Register of People with Significant Control (PSC) – In some cases, LPs must disclose PSCs.
Anti-Money Laundering (AML) Rules – Partners must comply with KYC/AML obligations.
Common Uses of a UK LP
International Trade – Tax-efficient structure for cross-border transactions.
Holding Company – Ownership of shares in subsidiaries and joint ventures.
Investment Funds – LPs are widely used for private equity and venture capital funds.
Real Estate Projects – Investors pool capital under LP structures.
Consulting and E-commerce – Efficient setup for global entrepreneurs.
Advantages Compared to Other Jurisdictions
More prestigious than traditional offshore centers.
Lower setup and maintenance costs compared to onshore European companies.
Recognized by banks and financial institutions worldwide.
Flexible ownership structure suitable for both individuals and corporations.
Challenges of UK LP Formation
Bank Account Opening – Some banks require extensive KYC documentation.
Perception Issues – LPs have been used in tax planning, so compliance is crucial.
Limited Public Recognition – Outside of Europe, some partners may be unfamiliar with LP structures.
Future of UK LPs in 2025
Recent reforms introduced transparency requirements for limited partnerships, but the UK LP remains an attractive tool for fund managers, international traders, and holding companies. In 2025, UK LPs continue to be widely used due to their balance of tax efficiency, flexibility, and prestige.
Conclusion
Company formation in the United Kingdom (LP) is a powerful solution for entrepreneurs and investors seeking an internationally respected, tax-transparent, and flexible business structure. With its simple incorporation process, low costs, and global credibility, the UK LP remains one of the most effective structures for cross-border business.
By choosing the UK LP, you gain access to a prestigious jurisdiction, flexible management, and efficient taxation, making it a preferred choice for international business expansion in 2025 and beyond.
FAQ
A UK Limited Partnership (LP) is a business structure with at least one general partner (who manages the business and has unlimited liability) and one limited partner (who contributes capital but has limited liability).
The main advantages are tax transparency, global prestige, low setup costs, and flexible ownership. UK LPs are widely accepted by banks, investors, and international business partners.
Registration is fast. Filing Form LP5 with Companies House typically takes 3–10 business days, depending on processing speed.
Yes. Non-residents can be both general and limited partners. There are no restrictions on nationality.
No. UK LPs are tax-transparent. Profits flow through to the partners, who pay tax in their country of residence. If the LP operates in the UK, UK tax may apply.
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