Limited liability bill: SECP approves draft

The proposed law provides for a new form of business structure, which would fill the gap between business firms such as sole proprietorships, partnerships, the liability of whose partners is unlimited and the companies governed under the Companies Ordinance 1984, whose members enjoy the benefit and privileges of limited liability.

The LLP regime will also provide a platform to small and medium enterprises and enable professional firms of chartered accountants and legal practitioners to convert their firms into the newly introduced form of business.

Most importantly, the LLPs would be taxed as a partnership, but will have the benefit of being a corporate, or more significantly, a separate juristic entity having perpetual succession but distinct from its partners.