ISLAMABAD, Aug 2 (APP):The Security and Exchange Commission of Pakistan (SECP) in collaboration with Islamabad Chamber of Commerce & Industry (ICCI) Thursday organized an awareness seminar to brief the business community about the new registration procedure of Limited Liability Partnership (LLP).
Liaquat Ali Dolla, Registrar of Companies of SECP was the Chief Guest. Shahzad Afzal, Assistant Registrar of Companies, Tariq Rasheed, Raza Khan Safi, Muhammad Shoaib Khan, Muhammad Rehan and Imran Ejaz of SECP were also present at the occasion, said a press release issued here.
Addressing the business community, Liaquat Ali Dolla said Registrar of Companies of SECP Limited Liability Partnership (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 in Pakistan.
He said that LLP offered a corporate structure that combined flexibility of general partnerships with the advantages of limited liability of a company.
He said internationally LLPs were preferred form of business vehicle for services industry particularly services involving professionals.
He said it was an alternative to the concept of traditional partnership and company structure to enable professionals, entrepreneurs and small & medium enterprises to jointly organize and operate their businesses in a flexible, innovative and efficient manner.
Regulations specified 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, he added.
He said that SECP always tried to provide maximum facilitation to businesses that wanted to get registered with it and the introduction of LLP was another positive to that direction.
Speaking at the occasion, Muhammad Naveed Malik, Senior Vice President ICCI appreciated the initiative of the SECP for introducing LLP in Pakistan.
He hoped 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 and would ultimately promote documented and formal economy in Pakistan.
He proposed that amendments should be made in LLP Act 2017 to reduce the maximum penalty from LLPs to less than Rs.10,000/.
He said condition of record keeping for LLP should also be reduced from 10 years to 5 years.
He stressed that FBR should determine low tax rate to LLP to encourage this form of business.