ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is introducing the concept of limited liability partnership (LLP) in Pakistan in collaboration with other stakeholders.
Initially, the SECP has approved a concept paper in this regard, which has been placed on its website to help raise awareness and solicit public and stakeholders’ comments.
An LLP is a partnership in which some or all partners have limited liabilities, which means that one partner is not responsible or liable for another partner’s misconduct or negligence.
Know more: SECP to introduce investor protection product
Introducing LLP as a new business structure will fill the gap between business firms — such as sole proprietorships and partnerships, which are generally unregulated — and limited liability companies that are governed by the Companies Ordinance, 1984.
In addition to an alternative business structure, LLP would act as a step towards documentation of the economy and will convert an informal, unregistered, and unregulated sector into a formal and regulated regime.
Published in Dawn, August 29th, 2014
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