The SLP company is a corporate form similar to the German and Austrian limited partnership. It must have at least one general partner and at least one limited partner. The limited company must be based in Scotland.
The limited partner is not entitled to participate in the business and management of the SLP.
In contrast to the above-mentioned limited partnership and also in contrast to an English or Welsh limited partnership, the SLP is legally a separate legal entity and therefore has its own legal capacity similar to a Limited (LTD) or a GmbH for example.
Since the SLP is a separate legal entity, the beneficial owner must be indicated in the commercial register as in the case of an LTD or LLP.
From a tax perspective, the SLP is permeable and transparent like a limited partnership. This means that it is not the company itself that is taxed, but that the result flows through and is directly attributed to the partners.
Advantages of the SLP:
- No UK tax if no business is based in the UK and no shareholder is resident in the UK
- No submission of annual financial statements to the commercial register
- No filing of tax returns
- Internationally recognized field of law
- Extensive anonymity until the introduction of the beneficial owner’s report
The SLP is very suitable and popular as a vehicle for investment companies to set up investment funds. It can have a large number of limited partners who are not authorised to manage. Having your own legal capacity is very useful.
The SLP is also used for holding investment interests, including shares, real estate and other assets, if the partners are resident outside the EU.
The SLP is also partly used in the field of e-commerce.