Government consults on the reform of limited partnership legislation
The Government is seeking views on the proposals to reform the legislation governing limited partnerships.
The aim of the reforms is to deter the use of limited partnerships for criminal activities and to minimise the burdens faced by those using limited partnerships for legitimate purposes.
The government will also consider whether laws governing limited partnerships should be brought more in line with the legislation governing limited companies.
Last year the government called for evidence of how limited partnerships were being used and if the legislative framework surrounding limited partnerships remains fit for purpose.
The proposed reforms include:
- a requirement that anyone applying to register a limited partnership provide evidence that they are registered with an anti-money laundering supervisory body. If the information is not provided, or cannot be verified, the application would be refused.
- an obligation for a limited partnership to do business in, or maintain some connection with, the UK. The first option would require a limited partnership’s principal place of business (PPoB) to remain in the jurisdiction of registration. The second option would allow a PPoB to move outside the UK provided that a service address is maintained within the jurisdiction of registration.
- a requirement for limited partnerships to file regular reports, such as annual confirmation statements confirming the information on the register is correct.
- a power for the Registrar of Companies to strike a limited partnership off the register in circumstances mirroring those for limited companies, including when it is voluntarily dissolved or if the Registrar discovers it has ceased to operate.
This consultation will end on 23 July 2018.