As per Lawkidunya, Here are the key features of Limited Liability Companies (LLCs) in Pakistan:
Key Features of LLCs in Pakistan
1. Minimum 2 Members: An LLC must have at least 2 members.
2. No Maximum Limit on Members: There is no maximum limit on the number of members in an LLC.
3. Members can be Individuals or Companies: Members can be individuals or companies.
4. Management can be Member-Managed or Manager-Managed: LLCs can be managed by their members or by appointed managers.
5. No Minimum Capital Requirement: There is no minimum capital requirement to establish an LLC in Pakistan.
6. No Restriction on Foreign Ownership: There is no restriction on foreign ownership in LLCs, subject to certain conditions.
7. Pass-Through Taxation: LLCs are taxed as pass-through entities, meaning profits and losses are passed through to members’ personal tax returns.
8. Limited Liability Protection: Members’ personal assets are protected in case the company incurs debts or liabilities.
9. Perpetual Existence: LLCs have perpetual existence, meaning they continue to exist even if a member dies, resigns, or is expelled.
10. Transferable Ownership: Ownership of an LLC can be transferred by selling or gifting membership interests.
11. Flexible Ownership Structure: LLCs can have any number of members, and ownership can be structured in a variety of ways.
12. Compliance with Regulatory Requirements: LLCs are required to comply with regulatory requirements, such as filing annual returns and maintaining financial records.
Additional Features of Limited Liability Company (LLC)
1. Separate Legal Entity: An LLC is a separate legal entity from its members.
2. Credibility and Perceived Legitimacy: Registering an LLC can enhance credibility and perceived legitimacy with customers, suppliers, and partners.
3. Ability to Raise Capital: LLCs can raise capital by issuing membership interests to investors.
It’s recommended to consult with a lawyer, accountant, or registered agent to ensure compliance with all regulatory requirements and to understand the specific features and benefits of LLCs in Pakistan.
