Scottish limited partnerships reform
The Department for Business, Energy and Industrial Strategy (BEIS) has published proposals to strengthen the legal framework for Scottish Limited Partnerships (SLPs).
ICAS welcomes views from members with experience of working with such entities to inform our response to BEIS.
Following evidence from a consultation investigating Scottish limited partnerships in 2017, the government has confirmed the need to offer Scottish limited partnerships as a business entity to facilitate legitimate and important commercial activity.
Only limited partnerships registered in Scotland have separate legal personality from the partners, with the ability to own property or enter into contracts.
Evidence of misuse has been identified whereby these structures have been used for criminal activity, including international money laundering, which damages the reputation of the UK as a trusted place to do business.
The government is, therefore, seeking to update the law to limit the risk of misuse and level the playing field with the governance of limited companies.
Proposals aim to increase transparency and introduce more stringent checks for the frontmen going into business in the UK.
Proposals under consultation include:
- All presenters (those seeking to register a limited partnership) to demonstrate they are registered with an anti-money laundering supervisory body.
- Either to limit a partnership’s principal place of business to remain in the UK or, to allow it to be overseas but with the requirement for a service address to be maintained in the UK.
- A requirement to file an annual confirmation statement (and what this should contain).
- A requirement to prepare accounts and reports.
- The power for the Registrar to strike off partnerships from the register of companies (and how to minimise strike-offs in error).