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 LLC Company 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.
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LLP vs PVT LTD 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 for SECP company registration online through 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.
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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.
Timeline of Registration
The registration process usually takes between 7 to 14 business days, depending on how complete the application is and the time required for document verification.
For detailed guidance and assistance with the registration process, consulting legal professionals experienced in corporate law is advisable to ensure compliance with all regulatory requirements.
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. 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.
Key SECP Forms for LLC Companies in Pakistan
The following table provides an overview of the important SECP forms required for Limited Liability Companies (LLCs).
SECP Forms for LLCs in Pakistan
| Category | Form Number | Purpose |
| Incorporation & Registration | Form 1 | Declaration of Compliance |
| Form 21 | Notice of Situation of Registered Office | |
| Form 29 | Particulars of Directors, Chief Executive, and Company Secretary | |
| Annual Compliance | Form A | Annual Return of Companies Having Share Capital |
| Form B | Annual Return of Companies Not Having Share Capital | |
| Changes in Company Structure | Form 3 | Return of Allotment of Shares |
| Form 7 | Particulars of Beneficial Ownership | |
| Form 11 | Notice of Change of Registered Office Address | |
| Form 26 | Conversion of Status (e.g., from Pvt Ltd to Public Limited) | |
| Changes in Directorship & Officers | Form 28 | Consent to Act as Director or Chief Executive |
| Form 29 | Appointment or Resignation of Directors, CEO, or Secretary | |
| Winding Up & Dissolution | Form 34 | Statement of Affairs for Winding Up |
| Form 36 | Liquidator’s Account |
When Should You Seek Legal Assistance for LLP Registration?
The LLP registration process has become more straightforward, especially when there are fewer than four partners, all located in the same place.
However, based on our experience and client feedback, there are situations where professional legal assistance is crucial. Here are some key scenarios where expert legal advice is highly recommended:
1. Multiple Partners in Different Locations
If your partners are based in different cities or regions, coordinating legal formalities can become complex.
2. Understanding Stamp Papers & Legal Documentation
If you’re not well-versed in the legal implications, valuation, or proper use of stamp papers, expert guidance can help prevent costly mistakes.
3. Drafting Internal Agreements & Memorandums
Legal professionals ensure that important documents, such as internal agreements and memorandums, are properly drafted and executed both before and after incorporation.
4. Converting an Existing Business into an LLP
If you’re transitioning from a sole proprietorship or an unregistered partnership, legal assistance is crucial for understanding tax obligations, banking requirements, and other financial considerations.
5. Foreign Investments & International Expansion
For businesses with international partners or plans to expand globally, compliance with foreign investment regulations and international trade laws is essential.
6. Intellectual Property Protection
If your business deals with trademarks, patents, or copyrights, legal support ensures your intellectual property is properly safeguarded.
7. Contractual Agreements & Legal Compliance
If your LLP will be entering into contracts with other businesses or government entities, a lawyer can help draft and review legally sound agreements.
8. Tax Planning & Financial Structuring
Expert financial guidance can help optimize profitability while ensuring compliance with tax laws.
9. Industry-Specific Compliance
Certain industries—such as finance, healthcare, or manufacturing—have additional regulatory requirements that must be met.
10. Raising Capital & Investment Compliance
If your LLP plans to attract investors or secure loans, legal professionals can assist with documentation and regulatory compliance.
11. Choosing a Legally Compliant Name & Business Objectives
Selecting an LLP name and defining business objectives in accordance with legal requirements can prevent future disputes and registration issues.
Why Choose Ways Tax for LLP Registration and Taxation of LLP in Pakistan?
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!