On January 16, 2017 the Department for Business, Energy and Industrial Strategy (BEIS) published a call for evidence to better understand uses of limited partnership businesses, with the aim of better understanding the economic benefit of limited partnerships and what is behind their popularity.
The Government is gathering evidence on the use of limited partnerships across the country, with a particular focus on those registered in Scotland. Unlike those set up in England, Wales and Northern Ireland, Scottish limited partnerships have their own ‘legal personality’, meaning they can hold assets, borrow money from banks and enter into contracts. Over the last five years significantly more limited partnerships have been registered in Scotland than elsewhere and media reports have alleged that some are being used as vehicles for a number of different forms of criminality.
The call for evidence will help inform what further action, if any, is required to prevent limited partnerships being used as a front for unlawful activities such as money laundering and tax evasion, while also ensuring that the limited partnership business model continues to provide an efficient and flexible vehicle for legitimate business use.
BEIS will also look at other characteristics and requirements within limited partnerships law including transparency requirements, principal place of business for the purposes of registration and the serving of legal documents. The arrangements for the ending of a limited partnership and the role of formation agents are also included in the call for evidence.
BEIS is requesting responses to the call for evidence by March 17, 2017.
(BEIS, Review of limited partnership law: A call for evidence, 16.01.17)