A Limited Liability Partnership (LLP) is a modern business structure that combines the advantages of a partnership and a private limited company. It offers flexibility in management while ensuring limited liability protection for its partners. In Pakistan, LLP registration is regulated under the Limited Liability Partnership Act, 2017, and is managed by the Securities and Exchange Commission of Pakistan (SECP).

Benefits of LLP Registration

1. Limited Liability Protection – Partners are only liable to the extent of their agreed contributions.
2. Separate Legal Entity – LLP is distinct from its partners, ensuring legal protection.
3. Perpetual Succession – LLP continues to exist even if partners change.
4. No Minimum Capital Requirement – Unlike private limited companies, LLPs do not need a minimum capital.
5. Tax Efficiency – LLPs enjoy tax benefits as they are not taxed separately from their partners.
6. Easy Compliance – Lesser compliance burden compared to companies.

Required Documents for LLP Registration

To register an LLP in Pakistan, the following documents are required:

• CNICs of all partners
• Proof of business address (Utility bill, Lease Agreement, or Ownership Document)
• Name Reservation Certificate from SECP
• LLP Agreement signed by all partners
• Details of each partner’s contribution
• Digital signatures of partners
• Registration fee payment receipt

Step-by-Step LLP Registration Process

Step 1: Name Reservation

• Submit an application to SECP for name reservation.
• The name should be unique and comply with SECP’s naming guidelines.
• Once approved, SECP issues a Name Reservation Certificate.

Step 2: Submission of Incorporation Documents

• Prepare and submit the incorporation documents to SECP.
• The LLP Agreement should define the rights, duties, and obligations of each partner.
• Pay the prescribed SECP registration fee.

Step 3: Issuance of Incorporation Certificate

• After verification, SECP issues an LLP Incorporation Certificate, confirming the LLP’s legal status.

Step 4: Obtain National Tax Number (NTN)

• Register with Federal Board of Revenue (FBR) for tax compliance.
• Apply for an NTN for tax filing purposes.

Step 5: Open a Business Bank Account

• Open an LLP bank account in the registered business name.
• The bank may require the Incorporation Certificate, NTN, and partnership agreement.

Step 6: Compliance with Other Regulatory Bodies

• If required, register with provincial tax authorities for sales tax and professional tax.
• Register with the Employees Old-Age Benefits Institution (EOBI) and Social Security if hiring employees.

Taxation of LLP in Pakistan

LLPs are treated as pass-through entities, meaning:

• The LLP itself is not taxed separately.
• Each partner reports their share of profits and pays tax individually.
• LLPs must file annual income tax returns and comply with FBR regulations.

LLP vs. Private Limited Company – Key Differences

Conclusion

Registering an LLP in Pakistan is an excellent choice for small and medium-sized businesses looking for limited liability and flexible operations. ASCO Tax Consultants can assist you throughout the LLP registration process, ensuring compliance with all legal and regulatory requirements.

Why Choose ASCO Tax Consultants?

• Expert Guidance – Professional assistance in documentation and legal compliance.
• Quick Processing – Hassle-free and smooth registration services.
• Tax & Compliance Support – Ensuring your business remains tax-efficient and compliant.

For professional LLP registration services, contact ASCO Tax Consultants today!