Steps to opening an LLP in the UK

If you’re considering setting up a business in the UK, you may be interested in forming an LLP (Limited Liability Partnership), a structure that combines the flexibility of a partnership with the legal protection of a limited company.

What is an LLP?

A Limited Liability Partnership is a business in which two or more people collaborate with the goal of making a profit.

Unlike sole proprietorships or traditional limited companies, a limited partnership allows for more collaborative management, ideal for professionals or partners with different responsibilities.

This guide will explain the key steps for setting it up and what you should keep in mind throughout the process.

Getting Started with Opening an LLP in the UK

Step 1: Check if this structure is right for your business in the UK

Before starting, it’s a good idea to consult with a professional, such as a lawyer or accountant, to confirm that this type of partnership is right for your needs. Not all business activities can be carried out under this form, as it is exclusively oriented towards profit-making businesses.

Step 2: Choose a name for your LLP in the UK

The name must be unique and meet the legal requirements established by Companies House. Identical names or names that are too similar to others already registered will not be accepted. Furthermore, if it contains restricted or sensitive terms, prior authorization from the relevant authority will be required.

Step 3: Complete the Companies House application form

To form a limited company, at least two people (either individuals or legal entities) must sign the incorporation document (form LL IN01 at Companies House) and declare their intention to operate legally. This step is essential to ensure the validity of the application with the British authorities.

Step 4: Register your LLP in the UK

There are two ways to do it:

Digitally: the fastest and most economical option. This can be done through specialized software or through authorized agents. The standard cost is around £50, and an express service is available for around £78.
Paper: Although slower, this is also valid. It requires sending the official form along with payment (£71) to Companies House.

In both cases, you must submit form LL IN01, which contains information such as the registered office address, partner details, and a declaration of legal compliance.

Step 5: Establish a registered address for your LLP in the UK

Every limited company must have an official address in the UK. This must be a place where formal correspondence can be received and where a responsible person can serve documents on behalf of the company. It is important to keep this address up to date, as any changes must be notified.

Step 6: Obtain your LLP registration certificate

Once registration is approved, you will receive an official certificate confirming the legal existence of the partnership. This document will include the company’s name, registration number, and date of incorporation, and will be essential for managing future business operations.

Step 7: Appoint the responsible partners of your UK LLP

There must be at least two designated members within the partnership. These have additional obligations, such as submitting annual reports, managing changes to the partnership, and acting legally on behalf of the company in the event of dissolution. Although all members share similar rights, the designated members assume key administrative functions.

Step 8: Comply with UK tax obligations

After incorporation, you must register your activity with the British tax authorities (HMRC). Tax obligations include corporation tax and, if certain revenues are exceeded, VAT registration. In addition, if you employ staff, you must also comply with social security and payroll obligations.

Step 9: Open a business account for your LLP in the UK

To operate effectively, it will be essential to have a local bank account in the company’s name. Banks will request information such as the company registration number, business address, and partner identification. This step is vital for managing income and payments professionally.

Step 10: Insurance and compliance

Depending on the sector in which your business operates, you may need to purchase mandatory insurance, such as public liability or employers’ insurance. You will also need to comply with current regulations regarding data protection, occupational health and safety, and consumer rights.

Conclusion

Creating a limited liability company is an accessible process if the right steps are followed. From choosing the name and partners to tax and legal management, every decision counts to ensure success and compliance with British regulations. If you are looking for a business structure that combines limited liability with flexibility, this model may be ideal for you.

For more information or if you would like advice on this formality, please do not hesitate to contact us, and we will be happy to help you.