In Pakistan, a limited liability company (LLC) is a type of business structure that combines elements of both a partnership and a corporation. Like a corporation, an LLC is a separate legal entity from its owners, which means that the owners are not personally liable for the debts and obligations of the business. However, like a partnership, an LLC is owned by its members, who share in the profits and losses of the business.
LLCs in Pakistan are governed by the Companies Act, 2017, which sets out the rules and regulations for the formation and operation of LLCs in the country. To form an LLC in Pakistan, the founders must first obtain a trade license from the relevant authorities and then register the company with the Securities and Exchange Commission of Pakistan (SECP). The founders must also draft and adopt articles of association, which set out the rights and responsibilities of the members of the LLC.
LLCs in Pakistan are required to maintain certain records and file periodic returns with the SECP, such as annual returns and financial statements. LLCs are also subject to income tax in Pakistan, and the members of the LLC are required to pay tax on their share of the LLC’s profits.