Senate Standing Committee on Finance and Revenue has approved the Limited Liability Partnership Bill (2017) that would allow smaller businesses and entrepreneurs to avail significant benefits.
New Bill is said to be beneficial for beginners and small businesses who have started their ventures and have very limited capital. According to proposed law, an LLP (Limited Liability Partnership would enjoy the rights of a partnership while accessing the privileges of a limited liability company, which is distinct from its owners.
In this way, LLPs wouldn’t only bring good to the entrepreneurs, but others businesses would also reap the benefits.
- No complicated legal framework would be required to form a Limited Liability Partnership, like a large company.
- No minimum requirements of capital are needed, so here smaller businesses and entrepreneurs have an advantage.
- In LLP, rights of partners to share profits would be transferable without dissolving the partnership.
- Private and public firms could be converted to LLPs.
- LLPs would be taxed as partnerships, but they would be a distinct entity just like companies following the same succession pattern.
The law would pave way for the corporatization of the economy, but at the same times, it would also allow many corporations to earn major benefits, a partnership can provide, as former can be converted into later.
Here is the need to bring about legislations that would create a friendly environment for the thousands of the youngsters who graduate from universities and look to build a difference in the economy with their talents. We just witnessed how young people responded to the Chief Minister Punjab’s E-Rozgar program. If their interest remained at this level and government made arrangements for catering to their needs than Pakistan would have prospects to be amongst the top economies of the world.