Limited Liability Partnership Bill, 2016 introduced in NA

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ISLAMABAD, Aug 3 (APP): Parliamentary Secretary Rana Muhammad Afzal Khan on behalf of the Finance Minister Senator Muhammad Ishaq Dar has introduced “The Limited Liability Partnership Bill, 2016” (LLP Bill) in National Assembly.

The bill was forwarded to Finance Division by the Securities
and Exchange Commission of Pakistan (SECP) as another initiative for the corporatization of economy and provision of “new corporate business form” in Pakistan, said a statement issued by SECP here Wednesday.

The SECP prepared the LLP Bill after extensive consultation sessions with all the relevant stakeholders.

The LLP Bill provides for establishment of “new corporate business form” that will enable professional expertise and entrepreneurial initiative to combine, organize and operate in an innovative and efficient manner.

In Pakistan, this need has long been recognized for businesses which require a framework that provides flexibility suited to requirements of small and medium enterprises and service sector.

The services sector is playing a major role in the national economy and there is a growing diversity in the range of services being offered.

The services sector will also find this form very useful.
The advantage of the LLP form would be that it will not impose detailed legal and procedural requirements intended for large widely held companies on such enterprises.

In this way it will also be useful for small and medium enterprises.

The LLP will fill the gap between business firms such as sole proprietorships /partnerships, the liability of whose partners is unlimited, and the companies governed under the Companies Ordinance 1984, whose members enjoy the benefits of limited liability.