Document background
The Limited Liability Company Operating Agreement is a fundamental document required for establishing and operating an LLC in Pakistan. This document becomes necessary when two or more parties wish to form an LLC under Pakistani law, particularly under the Companies Act 2017. It outlines the complete operational framework of the company, including ownership structure, management responsibilities, capital contributions, profit distribution, and decision-making processes. The agreement serves as the primary reference point for resolving internal disputes and managing company affairs, while ensuring compliance with Pakistani corporate law requirements. It's particularly crucial for protecting member interests and establishing clear governance procedures, making it essential for both new company formations and restructuring existing businesses.
