LLP in Pakistan

LLP stands for Limited Liability Partnership, it is a type of business structure that is similar to a partnership but offers the personal financial protection of a limited company.

In Pakistan, the Companies Act 2017 introduced the concept of LLP, but the rules and regulations for its formation and operation are yet to be issued by the Securities and Exchange Commission of Pakistan (SECP). However, it is expected that the formation of LLP will be regulated under the Companies Act 2017 and the SECP (Limited Liability Partnership) Rules, 2019.

The key characteristics of LLP in Pakistan would be:

  • It is a separate legal entity, distinct from its partners.
  • The partners have limited liability, meaning their personal assets are protected in case of any debts or liabilities of the LLP.
  • It is relatively easy to set up, but more formal than a partnership.
  • It requires at least two partners, with no maximum limit.
  • It has a separate legal identity from its partners, and can own assets in its name, enter into contracts, sue or be sued in its name.
  • It is not required to hold annual general meetings or appoint auditors.
  • It has to file annual returns with the SECP.

It’s important to note that laws, regulations and procedures may change and it is recommended to consult with a professional or relevant authorities before taking any action.

LLP is a relatively new concept in Pakistan and it is expected to be a popular choice among small and medium-sized businesses, as it offers the benefits of a partnership while also providing personal financial protection for the partners. However, the rules and regulations for LLP are still under process, so it would be advisable to consult with a professional or relevant authorities before proceeding with the formation of an LLP in Pakistan.

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