Northern Ireland
Company Formation Services

Northern Ireland, as an integral part of the United Kingdom, maintains a well-established corporate landscape that remains largely stable, with no groundbreaking changes in sight. Instead, the region’s primary focus lies in rebalancing its economy, shifting away from historical economic models that were shaped by Northern Ireland’s turbulent past.

Historically, the Northern Irish economy has been characterized by a dominant manufacturing industry and agricultural sector. However, the past three decades have witnessed a gradual transition towards a more service-oriented economy, notably in the public sector. The largest contributors to the private sector in Northern Ireland encompass wholesale and retail, manufacturing, and business and professional services, including real estate, renting, and business activities. Yet, as suggested by the Varney Review, substantial opportunities lie ahead for the Northern Irish economy, with the emergence of new markets in sectors such as information and communication technologies and financial services.

The government acknowledges that economic rebalancing hinges on high-productivity sectors expanding and firms across all sectors enhancing their productivity.

Common Business Entities

Partnerships

Both Northern Ireland General and Limited Partnerships are widely employed in Northern Ireland. Unlike companies, partnerships lack separate legal personalities. Partnership laws are primarily outlined in the:

• Partnership Act 1890, applicable to both general and limited partnerships.
• Limited Partnerships Act 1907, which pertains solely to limited partnerships.

Northern Ireland General partnerships represent the predominant form, defined as the collaborative business endeavor between individuals aimed at generating profits. A partnership agreement is necessary, with fundamental terms stipulated in the Partnership Act 1890.

Northern Ireland Limited partnerships comprise both general and limited partners, with general partners being responsible for all the firm’s debts and obligations. In contrast, limited partners contribute capital or property at a specified valuation upon entering the partnership and are not liable for the firm’s debts beyond their contributed amount.

The Limited Liability Partnership Act (Northern Ireland) 2002, in force since July 2003, permits limited liability partnerships. These structures retain the partnership framework while safeguarding partners’ personal assets from claims unrelated to their responsibilities.

Northern Ireland LLP
Limited Liability Partnership (LLP)
LLP – Tax Planning

Under certain conditions, Northern Ireland Limited Liability Partnerships can avoid UK tax at both the corporate and individual levels if structured correctly. LLPs in Northern Ireland, with solely non-resident partners and no Northern Irish or UK business activities, are exempt from taxation in both Northern Ireland and the UK.

Moreover, it’s not obligatory for an Northern Ireland LLP to include a British partner. As long as the business of the Northern Ireland LLP is managed, controlled, and conducted outside the United Kingdom, no taxation should apply to the non-resident partners’ income.

General LLP Benefits

We provide a variety of options to facilitate the swift and uncomplicated incorporation of your Northern Ireland LLP with Companies House, ensuring hassle-free administration once the registration is complete. Among the myriad legal developments in recent years, the introduction of limited liability partnerships stands out as particularly intriguing. In practical terms, a limited liability partnership serves as a mechanism for safeguarding partnerships of all sizes against potential liabilities stemming from inadvertent or negligent actions by a partner. For instance, it shields partners in international accounting firms from personal liability in cases where significant claims are brought forth by clients. Similarly, it offers protection to partners in construction businesses in the event of structural failures leading to substantial claims.

Other types of partnerships may also find limited liability partnerships attractive for the same protective reasons. This business structure can be suitable for collaborations where some partners are less involved, often referred to as “sleeping” partners, and is well-suited for individuals engaged in joint property or finance ventures. Nevertheless, it’s important to note that a limited liability partnership is less likely to serve the needs of smaller trading companies, as conventional limited companies often fulfill their requirements at a lower cost.

Open a Northern Ireland LLP
Full Tax Exemption
Highest level of Credibility

Designated members

Each Northern Ireland Limited Liability Partnership is required to have at least two formally appointed designated members at all times. These designated members perform roles akin to those of executive directors and a company secretary in a standard corporation. Their responsibilities encompass the following aspects, particularly if the LLP generates income within Northern Ireland or the United Kingdom:

It’s important to note that designated members are legally liable for any failure to fulfill these obligations. If there are less than two designated members, all members are considered designated members by default, unless the LLP decides that only specific members should carry this designation.
With the consent of the other members, an individual member can become a designated member at any point. These designated members share the same rights and duties as any other member within the limited liability partnership. The parameters of these shared rights and responsibilities are outlined in the limited liability partnership agreement and are governed by general legal principles. However, designated members are subject to additional legal obligations.

Note:
The number of members within an LLP can be unlimited.
Shelf limited liability partnerships are available and can be provided upon request.
The incorporation process typically takes approximately 24 to 48 working hours.