Legal entities: ‘LLP to modify business structure’

LLP is governed by the 1984 Companies Ordinance

LAHORE: The limited liability partnership (LLP) is a new business structure, which would fill the gap between business firms such as sole proprietorship and partnerships that are generally unregulated. It is governed by the 1984 Companies Ordinance. Securities and Exchange Commission of Pakistan (SECP) Registrar of Companies Muhammad Siddique addressed the fourth meeting in a series of advocacy and consultative sessions on Tuesday at a local hotel. He said that in addition to an alternative business structure, the LLP would act as a step towards documentation of the economy and convert informal, unregistered and an unregulated sector into a structured one. SECP, in collaboration with other stakeholders like USAID, ICMA and PMDC, is working on a law to introduce LLP as a business structure having a separate legal entity and limited liability, wherein the relationship between the partners is governed through a partnership agreement.

Published in The Express Tribune, October 22^nd, 2014.

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