How does an LLP differ from a partnership firm?
A partnership firm registers with the Registrar of Firms and its partners are personally liable without limit. An LLP registers with SECP and limits partners' liability.
LLP or private limited company?
A private limited company uses shares and directors and is better suited to raising investment. An LLP uses a partnership agreement and suits professional firms. For a full comparison, read business registration in Pakistan.
What do you need to register an LLP?
Partners' CNICs, a proposed name, an LLP agreement and a registered address. Confirm current SECP requirements for LLPs before filing.
What should an LLP agreement settle before you register?
- Each partner's capital contribution and profit share.
- Who can sign contracts and spend money.
- How decisions are made and how disputes are resolved.
- What happens when a partner leaves or dies.
Settling these on paper is cheaper than settling them in a dispute. Compare structures again at business registration in Pakistan if you are unsure.