Limited Liability Partnership (LLP)

A Limited Liability Partnership (LLP) combines the benefits of a partnership and a company. It provides flexibility in management while protecting the personal assets of its partners through limited liability. An LLP is a separate legal entity governed by the Limited Liability Partnership Act, 2017, and regulated by the Securities and Exchange Commission of Pakistan (SECP).

Benefits

  • Limited Liability:
    Partners’ liability is restricted to their capital contributions.
  • Separate Legal Entity:
    The LLP can own property, enter contracts, and sue or be sued independently of its partners.
  • Flexible Management:
    The operational structure can be customized in the LLP agreement.
  • Tax Efficiency:
    LLPs are taxed as partnerships, often leading to better tax advantages compared to companies.
  • Perpetual Succession:
    The LLP remains operational regardless of changes in partners.

Required Documents
To register an LLP in Pakistan, you’ll need:

  1. CNIC copies of all partners.
  2. Proof of registered office address (e.g., utility bill, rental agreement).
  3. LLP Agreement detailing management structure and partners’ responsibilities.
  4. Consent forms from all designated partners.
  5. Digital signatures for electronic submission.

Registration Process

  1. Name Reservation:
    • Submit an online application for name reservation via SECP’s portal.
    • Ensure the name is unique and adheres to SECP guidelines.
  2. Document Submission:
    • Prepare and upload the LLP Agreement and required documents.
    • Pay the prescribed registration fee.
  3. SECP Verification:
    • SECP reviews the application and documents.
  4. Certificate of Incorporation:
    • Upon approval, SECP issues the Certificate of Incorporation, officially registering the LLP.

Post-Registration Compliance

  • Register for a National Tax Number (NTN) with the Federal Board of Revenue (FBR).
  • Open a business bank account.
  • Update business licenses and inform stakeholders of the new LLP structure.

Legal Framework

  • Limited Liability Partnership Act, 2017: Governs LLP formation, operation, and dissolution.
  • Income Tax Ordinance, 2001: Addresses taxation requirements.
  • SECP Regulations: Guides LLP registration and compliance.

Why Choose an LLP?
A Limited Liability Partnership is an excellent choice for professionals, startups, and small businesses seeking a flexible yet secure business structure. It combines operational simplicity with legal protection, offering the perfect balance for modern businesses.