LLP Registrations with sidekick.pk

Get your Limited Liability Partnership registered to enjoy the double benefits of a partnership firm and a limited liability company, at just Rs. 15,000/-*.

Start now for just Rs. 15,000/- and pay the rest later.

LLP Registration is now Easy in Pakistan! with Sidekick.pk

Register your Limited Liability Partnership with us in 3 simple steps…

Reserving LLP name
We help you pick the right name for your company/brand and reserve it for you.

step # 01

Obtain DSCs
We help you get the 2 DSCs with 2 years validity.

step # 02

LLP Agreement & Filing
We draft, execute, and file the LLP Agreement (along with PAN & TAN) with utmost care.

step # 03

Overview

LLP Registration Online in Pakistan – An Overview

Limited Liability Partnership (LLP) is an alternative form of business introduced in Pakistan by SECP through Limited Liability Partnership Act 2017 and augmented by Limited Liability Partnership Regulations 2018  Traditionally, there have been three widely used corporate structures for incorporating a company in Pakistan which include a general form of partnership, sole proprietorship and a limited liability company.

The Securities and Exchange Commission (SECP) has been busy in updating some of the obsolete legalisation pertaining to company regulation such as the Companies Ordinance 1984 and the LLP Act 2017 is also reflective of the regulator’s desire to provide a conducive atmosphere for the corporatization of the economy.

The general form of partnership has an obvious flaw which does not make it the medium of choice for small and medium enterprises as well as services-based industries. It assumes unlimited liability for the partners involved because the firm is not deemed to be a body corporate.

Benefits

Benefits of LLP in Pakistan – An Overview

The benefits provided to entrepreneurs as per the Limited Liability Partnership Act are as under:

    Partnership tax will be imposed on LLPs
    LLP will be formed as a separate juristic body
    LLP for big corporations will not require any legal or procedural condition
    There is no extent of minimum capital contribution in LLP
    Public and private sector firms can also join into an LLP company

Small companies need an adaptable structure that will fulfill the necessities of small and medium ventures and particularly in the service sector. The service sector plays a major role in the growth of the national economy. Increased diversity can be seen in the existing variety of services offered by SECP. 

The main advantage of the Limited Liability Partnership for business is that it will not require complex legal and procedural requirements suitable for large and widely held companies.

The scope of entrepreneurship is increasing with a rapid pace in Pakistan. Here majority of the young talents are looking forward to establish their own startup companies. This kind of bill may yet stand out to be a vital resource for the entrepreneurs of the country.

The Limited Liability Partnership (LLP) is the mode of establishing small scale partnerships under a new form of business structure.

The new structure will remove the difference between two types of firms: sole proprietorships/partnerships – the liability of whose partners is unlimited, and the firms whose sponsors enjoy the benefits of limited liability.

The SECP, which has initiated the move, feels that there is a need for an alternative to the concept of traditional partnership and company structure, to enable professionals, entrepreneurs, and SMEs to jointly organize and operate their businesses in a flexible, innovative, and efficient manner. The LLP will enable individual partners to shield themselves from the joint accountability created by another partner’s faulty business decisions or misconduct. The LLP will permit individual partners to shield themselves from the joint accountability created by another partner’s faulty business decision or misconduct

The two primary considerations for introducing LLPs are the ‘Risk Factor Advantage’ associated with such enterprises and the ‘Enhanced Global Competitive Advantage’- an LLP vehicle offered to Pakistani professionals.

Under the LLP law, two or more persons can establish a ‘lawful business’ which will have the acronym ‘LLP’ as the last words of its name.

It further provides elaborate contributions to be decided mutually by the partners that may consist of money, negotiable instruments, properties (including valuable rights), intangibles, knowledge and skills, etc.

The detailed requirements for financial disclosures include maintenance of accounts, other records and audit, inspection of documents kept by the Registrar, penalty for false statement, filing and registration of documents. The law also allows the compromise, arrangement or reconstruction and winding up of the LLP.

Such business registration models have already been adapted by most of the developed, and counterpart, jurisdictions. Any foreign LLP will also be allowed to operate in the country.

In Pakistan, this need has long been recognized for small and medium businesses, which require a flexible regulatory framework for an LLP with less stringent requirements.

As SMEs play a pivotal role in the services sector, they would be the main beneficiary. The LLP would not impose detailed legal and procedural requirements, as is the case with large scale corporate structures.

Eligibility Criteria

Eligibility Criteria for LLP in Pakistan

Any two or more persons associated with business with an intention to make profit may, after registration with the SECP as per the Limited Liability Partnership Act, 2017 and Limited Liability Partnership Regulations, 2018, establish an LLP.

The process of forming an LLP begins with the selection of a name subject for the organization and the submission of an application (Form I- Part I) to the registrar of the Securities & Exchange Commission of Pakistan (SECP) for the reservation of the chosen name which can be submitted online or in physical form. The chosen names are subject to the criteria set under Sec. 6 of the Act. In accordance with the availability of the select name, the submission of all relevant documents and the payment of the prescribed fee, the LLP will be registered within 2 days.

With the satisfaction of the Registrar, the applicant shall be allowed to apply for incorporation of the LLP as per the Form I-Part II within 30 days. Next the applicant shall apply for incorporation as per the Form III which requires all relevant documents and the payment of the prescribed fee. This can also be done online or in physical forms. If satisfied, the Registrar will issue a certificate of incorporation under the Act and register the LLP.

In case of refusal of application, the applicant may file an appeal to the Appellate Branch of the Commission within a time period of 60 days.

CONVERSION

The LLP Act 2017 also allows for the conversion from a Firm or a private limited company into an LLP. This is to be done in accordance with the LLP-Form VI which is to be submitted to the Registrar along with the relevant documents and fee. If the Registrar is satisfied with the application, the Registrar shall issue a certificate of incorporation in accordance with LLP Annexure II and register the LLP.

DISSOLUTION

Dissolution of an LLP can be either voluntary or through court.

The Registrar may also decide to strike down the name of the LLP from the register in case an LLP does not operate in accordance with the Act or fails to comply with any of its provisions. In this case the Registrar must issue a cause to the LLP and its partners of his intention. After a period of one month passes, the Registrar may strike down the name of the LLP from the register via an order in writing and officially publish a notice of such in the Gazette. The LLP therefore stands dissolved.

The LLP will have a Designated Partner to handle the affairs relating to administrative matters as required under Sec. 10 of the Act.

With the prior approval of the Registrar, the physical forms of documents and records of the LLP kept at the LLP Registration Office may be destroyed after the expiration of, firstly, a period of ten years from the filing of the record in question in case the LLP exists, and secondly, the expiration of five years from the date of dissolution of LLP in case the LLP stands dissolved.

If the said documents are not a part of any current court proceedings and are not ordered by the Court, the Commission or any competent authority then the records shall be preserved until the termination of said proceedings.

Documents Required

Documents Required for LLP Registration in Pakistan

Once you have reserved the name, you need to complete the following documents to proceed towards incorporation:

1.Attested copy of the LLP agreement duly executed by the partners, witnessed and notarized;
2.Copies of National Identity Card (NIC) of the partners and of designated partners and in case of physical application, of witness to the documents and in case of foreigner, a copy of passport;
3.Name Availability Letter;
4.Consent of designated partner (if any);
5.In case of physical application, original bank challan evidencing the payment of fee as specified in Fee Schedule given in the next section. 
6.Authority letter signed by all the partners in favor of the person who has been authorized to file documents (An advocate of the High Court/Supreme Court or a Chartered Accountant/Cost Management Accountant) and;
7.Any other information and document as required by the registrar.?

Once you have compiled all documents, you can proceed to filing an application of incorporation of LLP (LLP Form-III). The registrar shall examine the application and documents and, if satisfied, will issue the LLP incorporation certificate. 

Filing of Form
This is the most important step of Limited Liability Partnership Registration; a detailed form is filed. The form consists of personal details of partners (name, father name, profession, address etc.), registered office of proposed, telephone number, email for communication, cell number, address of the firm etc.

6. Consent of Partners
Each partner in LLP is required to communicate SECP that he /she is joining the firm at his free will. Written consent of each partners is required to be submitted with SECP on the prescribed form at the time of registration.

7. Deposit of Fee
After completion of documents next step is payment of fee create a challan of prescribed fee, challan can be paid in any designated branches of UBL and MCB.

8. Submission: 

In case of online process submit documents and sign form User ID of all Partners. in case of manual registration process

Designated Partner:

Each LLP must have at least “One Designated Partner” who is mainly responsible for various administrative matters , e.g., accountancy , H.R and tax matters, on behalf of the partnership.
Section 10 of the Limited Liability Act lays down the following about designated partner
Every limited liability partnership shall have at least one designated partner who
Conversion in Private Limited Company
The application for conversion from private limited company to a LLP shall be filed as per LLP Form-VI [Part II] in terms of requirements as specified in the third Schedule of the Act subject to payment of fee as per Fee Schedule of these regulations. The registrar on being satisfied with the application, shall register the LLP and issue a Certificate of Incorporation

How to Register?

How to Register an LLP Online with Sidekick.pk

STEP BY STEP PROCESS of LLP Registration

1Name Selection
First select a unique name for your LLP , it should not have resemblance with any existing private company or LLP . Please remember LLP shall be added in the name of LLP . If your firm name is UVWXYZ then the full name shall be “UVWXYZ LLP”.

2. User registration
User ID or User account is created for each and every partner of the LLP on SECP e-Portal. The user ID is necessary for LLP registration, filing forms after registration and other many purposes

3. Availability of Name
The first step in LLP Registration in Pakistan is to make an application to the registrar for the availability of name. The application may be filed both in online and offline mode

Prohibited Name
Subject to section 6, the following words and combinations thereof shall not be used in the name of a limited liability partnership in English or any of the languages depicting the same meaning,-

a. Federal Government, Provincial Government, Name depicting association with any foreign government, Name suggesting association with any political personality, Commission, Authority, Register/ Registered, Co-operative, Bureau, Division, Department, Undertaking, Municipal, Union, Republic, Nation, President, Governor, Prime Minister, Chief Minister, Minister, Cabinet, Senate, National Assembly, Provincial Assembly, Parliament/ Parliamentary, Statute/ Statutory, Court/ Judiciary/ Judge, Jury, Administrator.
b. Names of International bodies and abbreviations thereof including, but not limited to, United Nations, South Asian Association for Regional Cooperation, Organization of Islamic Conference, World Bank, International Finance Corporation, Asian Development Bank, Islamic Development Bank, International Monetary Fund, Red Cross, Red Crescent:

Why only Sidekick?

    Our package covers everything you need to incorporate your LLP and get it business-ready
    Our experts are up to date with the laws and have helped businesses like you register their LLP
    You can do all the tasks for registering your LLP through a simple and easy-to-use personalized dashboard. It is completely online and can be accessed through a desktop or the Sidekick.pk app on your cell phone
    You’ll have your LLP incorporation certificate in 20 days

    Our support team is available to answer any questions you may have.

FAQs

Sidekick.pk is a business facilitation service in Pakistan. We provide upcoming and established businesses services such as company formations, NTN & GST registration, and registration of intellectual property matters such as copyrights, designs, patents and trademarks. We also provide filing, taxation, and audit services.

There are basically the following types of business structures that one can adopt in Pakistan: Sole Proprietorships, Partnerships, Limited Liability Partnerships (LLP) and Limited Companies (also known as Corporations or sometimes as LLC in other countries). Each type is best for a specific purpose or situation, and differs in characteristics when considering taxes, liability, and the ability to control the profits and losses of the business. Each type is briefly explained in the following answers.

 A Limited Liability Partnership (also known as LLP) is a newly introduced business structure in Pakistan that has the flexibility of a general partnership as well as advantages of a limited liability company. It is a hybrid of the concept of partnership and company structure to enable professionals, entrepreneurs and small and medium enterprises to jointly organize and operate their businesses. LLPs are registered with SECP. Taxes are paid in the name of the LLP and not on the personal tax returns of partners. All names must have the acronym LLP in them and are subject to availability with SECP.

The time depends on the Registrar of Firms and on how fast the client can provide us the required documentation. Usually for Partnerships the time required to register is about 10 working days.

Before incorporating a company, you must first ensure that the name you want to register is not already being used by another company. Use the tool available on our Search page to check existing names of all companies in Pakistan (courtesy SECP). Please note this search is only for checking names of private limited companies. Currently there is no method to search names of existing sole proprietorships or partnerships.

SIdekick.pk is a convenient one window facilitation portal which does all the work for you. You do not need to run after lawyers and other professionals who are often expensive and don't deliver on time. Furthermore, we provide value added services important to all kinds of businesses such as logo & stationery designing and website development. Therefore, you don't have to waste your time looking for different professionals when you can be focusing on what's important: your business!

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