In Pakistan, there are two types of Limited Liability Companies (LLCs) that are recognized under the Companies Act, 2017:
- Private Limited Company (PLC): A Private Limited Company is a type of LLC in which the liability of the members is limited to the amount of capital they have invested in the company. This type of company is suitable for small to medium-sized businesses that are not looking to raise capital from the public.
- Public Limited Company (PLC): A Public Limited Company is a type of LLC that is permitted to offer its shares to the public for subscription. The liability of the members of a Public Limited Company is also limited to the amount of capital they have invested in the company. This type of company is suitable for large businesses that are looking to raise capital from the public through the sale of shares.
It’s worth noting that LLCs in Pakistan are required to have at least two members and must be registered with the Securities and Exchange Commission of Pakistan (SECP).