Limited Liability Partnership Registration in Pakistan
A Limited Liability Partnership incorporates aspects of both a partnership and a Limited Company. It also provides a new form of legal structure that is becoming very popular amongst business persons.
However, LLP is rapidly increasing according to Statista; new 326 LLPs were registered in January-2024, and 240 LLP registrations were registered in February of 2024.
This clearly underlines the popularity and confidence in LLPs as business models which owners find appropriate for a contemporary legal framework.
At Ways Tax, we understand the complexities of the Limited Liability Partnership (LLP) Registration, and we aim at making the whole process as easy as possible.
What is a Limited Liability Partnership?
An LLP is a hybrid business structure between a limited company and a general partnership. It provides the partners with advantages of limited liability while at the same time enabling the partners to have control over the running of their business.
LLPs are specifically favorable for companies that contain professionals, service industries or any other small to medium enterprise in need of a flexible, yet well-ordered business structure.
Eligibility Criteria for LLP Registration in Pakistan
An LLP can be established by one or more individuals who want to engage in a lawful business venture for profit making.
These individuals need to file their LLP with the Securities and Exchange Commission of Pakistan (SECP).
Further, for any business entity which is already engaged in partnership firms or Private Limited Companies, it is quite flexible to transform into LLP format if suitable with certain compliances.
Looking to form an LLP? Contact Ways Tax for expert assistance!
Difference between LLP and PVT Ltd in Pakistan
Aspect | LLP | General Partnership |
Liability | Limited to partner contributions; no liability for others’ actions | Unlimited liability for all partners |
Legal Entity | Separate legal entity | Not separate; referred to as a firm |
Perpetual Succession | Continues despite partner changes | May dissolve upon death or retirement |
Partners Limit | No maximum limit | Maximum of 20 partners |
Property Ownership | LLP owns assets independently | Property held jointly by partners |
Fees for Limited Liability Partnership (LLP) Registration in Pakistan
Fee Description | Amount (PKR) |
Name Reservation Fee | 200 |
LLP Registration Fee | Based on authorized capital (starting at PKR 10,000) |
Additional Fees | Varies for digital signatures or certified documents |
Process of Limited Liability Partnership Registration in Pakistan
The LLP incorporation process in Pakistan is governed according to PMDL Limited Liability Partnership Act, 2017, as well as LLP Regulations, 2018.
Below is a simplified overview of the steps:
Step 1: Name Selection and User Registration
- Check the availability of a suitable LLP name on the SECP website and avoid prohibited words (e.g., “Federal Government,” “Authority,” “United Nations”).
- Apply using SECP’s online e-services portal or file manually.
Step 2: Name Reservation
- File LLP Form-I to get your desired name reserved for a period of 30 days.
- After the incorporation, SECP will issue a name availability letter.
Let Ways Tax do it for you while you focus on your business goals!
Step 3: Documents Required for LLP Registration
Gather the following documents:
- Attested and notarized LLP Agreement.
- CNICs or passports (for foreign partners).
- Name availability letter.
- Consent forms for designated partners (if applicable).
- Fee payment proof (challan).
- Authority letter authorizing filing on your behalf.
Step 4: Filing for Registration
- File LLP Form-III along with all the documents that are completed to SECP.
- The LLP is incorporated once the SECP approves the LLP name and then it issues you the Certificate of Incorporation..
Dissolution of an LLP in Pakistan
- Voluntary Dissolution: Both the partners decide to wind up LLP through formalities of SECP.
- Registrar’s Action: The Registrar can remove the name of an LLP from the register after giving a notice and publication in the gazette.
- Court-Mandated Dissolution: A court may grant an order of dissolution if the LLP carries out unlawful business.
Documents should be kept for not less than 10 years for operating LLPs and for five years after dissolution where they are not associated with legal action. A Designated Partner needs to deal with some administrative tasks during this stage.
Benefits of Limited Liability Partnership Registration in Pakistan
Following are some of the benefits of LLP
1.Limited Liability for Partners
Unlike general partnerships, the partners of an LLP are said to have limited liability. This means that they incur the expenses of the business only up to the amount of capital that they invested in the business their personal assets are shielded.
2.Separate Legal Entity
An LLP is considered to be a different legal entity from the partners, which means that it has rights to own property, to make contracts, to sue and be sued etc.
3.Perpetual Succession
The LLP does not dissolve due to the death, retirement or resignation of partners though the composition of partnership changes.
4.Tax Benefits
LLPs might be more advantageous in terms of tax than the traditional companies depending on the activity of the business and rules regarding taxations in Pakistan.
5.Flexibility in Management
The partnership structure offers operational flexibility, with fewer regulations compared to companies, allowing partners to define their roles and responsibilities in the LLP agreement.
6.No Maximum Partner Limit
An LLP has no limitation on the number of partners, meaning that it can accommodate expansion and business partnerships.
7.Reduced Compliance Requirements
LLPs have simpler and less stringent compliance requirements compared to private limited companies under Pakistan’s regulatory framework.
8.Ease of Conversion
Partnership firms or private limited companies can easily get converted to LLPs, enabling them to without disturbance of their operations such as getting new privileges such as limited liability.
Why Choose Ways Tax for LLP Registration?
At Ways Tax, we take pride in offering a seamless, client-focused service. Here’s why we’re the trusted choice for LLP registration:
1.Expert Guidance
We have well experienced professionals in tune with SECP and offer suggestions to suit your business needs.
2.End-to-End Service
We take charge of all the necessary paperwork, including document preparation and registration, so you can focus on your business.
3.Affordable Pricing
Our fees are affordable and fixed at fair market value to enable our clients to get the most value for their money.
4.Customized Solutions
We advise and guide you based on your requirements so that you can register an LLP that is right for you.
5.Dedicated Support
Our dedicated team is always willing to hear from you and provide any extra information that may be required.
Let Ways Tax Handle Your LLP Registration Needs
Setting up an LLP requires careful attention to legal details which can be quite hectic. Ways Tax is here to make Limited Liability Partnership Registration easier for you.
From document preparation to final approval, we handle every step efficiently, ensuring a smooth and hassle-free registration experience.
Partner with Ways Tax today to focus on growing your business while we take care of the paperwork and procedures.
Reach out now to get started!