ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has notified the Limited Liability Partnership Regulations, 2018.
The limited liability partnership (LLP) is an alternative form of business establishment, which has the flexibility of a general partnership as well as the advantages of a limited liability company.
It is an alternative to the concept of traditional partnership and company structure to enable professionals, entrepreneurs and small and medium enterprises to jointly organise and operate their businesses in a flexible, innovative and efficient manner. This structure has been available in a host of countries around the world.
The regulations specify the form and manner of registration of LLP, fitness and propriety of designated partners, accounts and audit requirement and conversion of existing firms and private limited companies to LLP.
It is expected that the introduction of this structure as a new business vehicle would contribute to the conversion of informal, undocumented sector into a formal and regulated.
Published in Dawn, May 15th, 2018