ISLAMABAD: The Securi­ties and Exchange Commission of Pakistan (SECP) is extending maximum facilitation to businesses seeking registration and the introduction of Limited Liability Partnership (LLP) is a positive step in this direction.

Speaking at an awareness programme on Thursday, SECP Registrar of Companies Liaquat Ali Dolla said the LLP was an alternative form of business that became available for registration after enactment of Limited Liability Partnership Act 2017 and Limited Liability Regulations 2018.

The session was organised by the SECP at the Islamabad Cham­ber of Commerce and Industry (ICCI).

Internationally LLPs are the preferred form of business vehicle for services industry, he explained. “It is an alternative to the concept of traditional partnership and company structures to enable professionals, entrepreneurs and small and medium enterprises to jointly organise and operate their businesses in a flexible, innovative and efficient manner,” he added.

He said the LLP offered a corporate structure that combined flexibility of general partnerships with the advantages of limited liability of a company.

ICCI Senior Vice-President Muhammad Naveed Malik hoped that this new business vehicle would ultimately promote regulation and documentation of informal sector.

He proposed that amendments should be made in LLP Act 2017 to reduce the maximum penalty for LLPs to less than Rs10,000 and the condition of record-keeping should also be reduced from 10 years to five years.

Published in Dawn, August 3rd, 2018