Everything You Need to Know About LLP Registration in Pakistan
Limited Liability Partnerships (LLPs), a flexible yet lawful business form, are fast becoming popular among Pakistani businessmen as business is increasingly becoming dynamic and participative in nature. LLPs have a contemporary means of organizing a business with co-responsibility but minimum liabilities by combining the ease of partnership with the advantages of a corporation.
This guide will help you learn about the requirements of how to register an LLP in Pakistan in 2025, if your entity is a small business, law firm, tech startup, or consultancy.
What is an LLP?
A form of business legal structure known as a limited liability partnership, or an LLP, allows two or more individuals to operate a company in partnership. Unlike a traditional partnership, however, each partner’s liability is capped at the amount they invested in the company.
It is registered with the Securities and Exchange Commission of Pakistan (SECP) and is regulated by the Limited Liability Partnership Act, 2017.
Important characteristics of LLPs in Pakistan include:
- Legal Identity: LLPs are distinct from their partners in terms of their legal identities.
• Limited Liability: The personal property of each partner is safeguarded.They cannot be held responsible for the negligence or actions of the other partners. - Flexible Management: Partners have direct management control and legal protections, similar to a conventional partnership.
• No need of Initial Capital: Anyone can start an LLP with whatever capital.
• Continuity: The LLP is continuous even when a number of partners move on.
Who require an LLP?
LLPs will serve the needs of small and medium-sized enterprises with more than one founder, technology start-up enterprises that need flexibility and legal protection, professional practices (lawyers, accountants, consultants, engineers), and family enterprises needing limited liability without full incorporation.
Documents Needed to Register an LLP:
To register an LLP with SECP, you must have a working phone number and email address, a copy of each partner’s CNIC, an LLP name and business address, and an LLP agreement outlining roles, responsibilities, and profit-sharing.
• Digital signatures, which are available from suppliers who have been approved by NIFT or SECP.
Step 1: Name Reservation for Limited Liability Partnership Registration in Pakistan
Apply through SECP’s eServices portal to reserve your LLP name. Verify that the name is original, acceptable, and unclaimed.
Step 2: LLP Agreement Draft
Create and sign a formal limited liability partnership agreement that specifies
each partner’s obligations and rights, capital contributions, and profit/loss sharing.
• Process for making decisions;
- Clauses for exit and dispute resolution
Step 3: Submit Online Application
Upload required documents and LLP agreement through SECP’s eServices portal. The online registration fee should also be paid.
Step 4: Certificate of Incorporation and SECP Scrutiny
The Certificate of Incorporation of your LLP is granted by SECP upon review and approval. Your company thus becomes a legally recognized entity.
Step 5: Obtain the FBR NTN
After incorporation, FBR generates your LLP’s NTN and IRIS login details for tax filing purposes automatically. This step is required in order to open a business bank account and file taxes.
Documents you receive:
You will receive Forms III and IV, the Taxpayer Registration Certificate (TRC), the NTN Certificate (from FBR), and the Certificate of Incorporation (from SECP).
Pakistani LLP Taxation and Compliance:
For tax purposes, LLPs and AOPs (Associations of Persons) are treated similarly. Here’s
what you should know:
LLP submits yearly income tax returns. Each partner is subject to individual taxes on their income share. Tax deductions for business expenses are available
✅ If you are registered for sales tax, you must file sales tax returns.
✅must keep accurate financial records and accounts.
By ensuring that your company is listed on the Active Taxpayer List (ATL), timely return filing grants you access to lower withholding tax rates and increased credibility.
Benefits of Registering an LLP:
✔ Limited Liability – Protects personal assets of partners
✔ No Audit Requirement – If annual turnover is below the threshold
✔ Professional Credibility – Suitable for tenders, contracts, and corporate clients
✔ Simple Internal Structure – Flexible and easy to manage
✔ No Board or AGM Requirement – Unlike Private Limited Companies
LLP vs. Private Limited vs. Partnership Firm
|
Feature
|
LLP
|
Pvt. Ltd. Company
|
Traditional Partnership
|
|
Legal Identity
|
Yes
|
Yes
|
No
|
|
Liability Protection
|
Limited
|
Limited
|
Unlimited
|
|
Tax Treatment
|
AOP-Based
|
Corporate
|
AOP-Based
|
|
Management Flexibility
|
High
|
Moderate
|
High
|
|
SECP Registration
|
Yes
|
Yes
|
No (Registrar of Firms)
|
|
Scalability
|
Medium to High
|
High
|
Medium
|
Final thoug
The limited liability partnership (LLP) structure is an excellent option for Pakistani professionals and businesspeople who want to combine the legal protection of corporations with the flexibility of partnerships. It’s particularly beneficial for collaborative ventures where liability needs to be limited — but operational freedom is key.
If you’re ready to register your LLP or need expert help navigating SECP and FBR procedures, Corptax Solutions can handle it all for you — from document preparation to final registration.
📞 Visit: CorptaxSolutions.com
📧 Email: [email protected]