UK Limited Partnership

A limited liability partnership (hereinafter referred to as LLP) is a relatively new type of legal entity with limited liability. The main feature of said company is that it is quite simple, but is taxed as a partnership. In most other respects, they are similar to companies. In accordance with the Law “On Limited Liability Partnerships”, two or more partners can conduct legal activities within an LLP in order to profit from joint activities prescribed by the founding documents concluded between them. At the same time, Limited Liability Partnerships cannot engage in all types of activities, for example, conduct non-profit activities.

Every limited liability partnership must have at least two formally appointed members (their functions are akin to those of an executive director and corporate secretary). Designated members responsible for:

• Appointment of an auditor for the partnership;
• Signing contracts on behalf of participants;
• Maintaining reports submitted to the registration service;
• Notification of the registration service of a change in the membership of the partnership, a change in the registered legal address or name;
• Preparation, signing and submission to the registration service of the annual reporting form;
• Acting on behalf of a limited liability partnership if it is liquidated or ceases to operate.

The appointed members of the partnership are liable under the law for failure to comply with the above requirements. If there are less than two appointed members of the partnership, then each member of the partnership will be considered as appointed. (The LLP may decide that all participants will be designated participants or that only certain participants will be designated).

Subject to the consent of the other members of the partnership, each member may become a designated member at any time. Designated members enjoy the same rights and obligations as other members of the partnership. These rights and obligations are governed by the charter of the LLP and general law. At the same time, the legislation imposes additional obligations on the designated participants.

The number of LLP participants is not limited.