Limited Liability Company Pakistan

What is Limited Liability?

Limited Liability Partnership (LLP) is an alternative type of business presented in Pakistan by SECP through Limited Liability Partnership Act 2017 and expanded by Limited Liability Partnership Regulations 2018, traditionally; there have been three broadly utilized corporate structures for the formation of an organization in Pakistan which are as follows,

1) Sole proprietorship 2) Partnership 3) Limited company

In any case, the need has consistently been available to bring another type of corporate structure through which the business owners can effectively participate in the organization's management and are secured against individual risk for the organization's obligations and debts.

Finally the gape was filled in 2017 by the provision of Limited Liability Partnership (LLP) bill passed by senate.

A limited liability partnership (LLP) is a corporate structure in which the proprietors are not liable for organization's obligations or liabilities while the provision of flow-through taxation to the shareholders of an LLP (means LLPs do not pay taxes, losses and profits are passed through to shareholders, who claim them on their tax returns) is a feature of partnership.

So a limited liability partnership (LLP) is a mixture substance that consolidates the qualities of a corporation with those of a partnership or a sole proprietorship.

Benefits of Limited Liability Partnership (LLP)

In short few core benefits of Limited Liability Partnership (LLP) are,

Tax which will be imposed on LLPs is Partnership tax.
The formation of LLP will be a separate entity
There is no any legal or procedural condition
LLP does not require any extent of minimum capital
LLP can be join by Public and private sector firms.

Requirements for Limited Liability Partnership (LLP)

Full name, address, occupation, and father or husband's name of all partners
CNIC copies of all partners
Partnership deeds on stamp paper (described above)
Address proof of business / Rent deed of the business
Partnership fee copy which needs to be deposited at the national bank of Pakistan
All partners have to sign the deed in the presence of an authorized officer or a registrar NTN
Bank account in the business name
Accounting records of the fir

Time Duration

It takes usually 4-5 days for registration of a limited liability partnership. But, it greatly relies upon the government processing time and client document submission time.

What to do next?

After doing the company registration, you will receive the registration documents from the department. So, after that, the next step will be Business NTN Registration. It will help you in opening a bank account.
After SECP registration, you need to register your business with some other concerned departments such as taxation departments, food departments, chamber of commerce, custom department, Pakistan software engineering board, Pakistan engineering council, etc. It depends upon your business type. You may contact our experts to get a consultation about your business registration in Pakistan.

How to open a bank account?

After registration of the company, you will proceed for a bank account opening. To open a bank account, you will need a business NTN. You will have to take the NTN and registered documents of the company.

Do I need a GST?

If you are a
Trader
Wholesaler/Distributor
Dealer
A service provider (courier, hotel, shipping, etc)
If your business
Has a turnover of more than 10 million
Utility bills exceed 8 lac
Has different branches
Is in a shopping mall
Then you must get a GST registration number. Otherwise, it will be a violation of the law. But, you don't have to worry about that. We will provide you complete consultation about business formation. Here is a complete guide of GST.

Do I need to do PSEB Registration?

If you have a
Call center
IT company
so you should do PSEB registration. For call center it is mandatory otherwise you can not operate in Pakistan, But, if you have an IT company then you should also register, so it will allow you to avail the tax exemption. We offer consultation for all kinds of business, so contact us now and we will give you a complete guide.

Do I need to do PEC Registration?

If you are starting an engineering business, then you have to do PEC registration. Otherwise, you can not undertake your work.

Do I need to do PEC Registration?

If you have a business-related to engineering, then you have to do PEC registration. Otherwise, you can not undertake your work.

Is the Chamber Of Commerce needed?

If you have a business of trading, so the chamber of commerce is mandatory for you.

Do I need Weboc registration?

If you want to do import/export business, then you must need weboc registration. Otherwise, you can not run your business.
For more information about limited liability company, such as it's benefits, disadvantages, and history you should read our blog! We are committed to giving you a complete guide and awareness. Starting from company name search to registration, incorporation, and further processes we are always here! If you want to make a Partnership Firm, you are just a call away from that. So, take out your phone and dial now: 03222812976 If you want to have a meeting, you can visit our office from noon to 7 PM (Pakistani time)! We are open every day except Sundays. Also, you should know that we won't ever overburden our clients. Spectrum Consultancy is a combination of quality and cheapness.