Limited Liability Partnership Agreement Template for Pakistan

The Limited Liability Partnership Agreement is a foundational document required when establishing an LLP in Pakistan under the Limited Liability Partnership Act, 2017. This document is essential for businesses seeking to combine the flexibility of a partnership structure with the limited liability protection typically associated with companies. It should be used when two or more partners (individuals or entities) wish to establish a formal business relationship while protecting their personal assets from business liabilities. The agreement must comply with Pakistani legal requirements and typically includes detailed provisions on partnership structure, capital contributions, profit sharing, management responsibilities, dispute resolution, and exit mechanisms. It's particularly suitable for professional services firms, family businesses, and joint ventures seeking a more flexible alternative to traditional company structures while maintaining professional credibility and legal protection.

1. Parties: Identification of all partners (individual and corporate) entering into the LLP agreement

2. Background: Context of the partnership formation and brief description of the business purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Formation and Name: Details of LLP formation, registered name, and business commencement date

5. Registered Office: Address of the registered office and provisions for changing it

6. Nature of Business: Detailed description of the LLP's business activities and scope

7. Capital Contributions: Initial and subsequent capital contributions by partners

8. Partnership Interests: Partners' ownership percentages and rights

9. Management Structure: Management responsibilities, designated partners, and decision-making processes

10. Partners' Rights and Duties: Detailed rights, obligations, and responsibilities of all partners

11. Meetings and Voting: Procedures for partner meetings and voting mechanisms

12. Financial Matters: Accounting procedures, profit/loss distribution, and financial management

13. Bank Accounts: Banking arrangements and authorized signatories

14. Books and Records: Record-keeping requirements and access rights

15. Admission of New Partners: Process and conditions for admitting new partners

16. Resignation and Retirement: Procedures for partner resignation or retirement

17. Expulsion of Partners: Grounds and process for partner expulsion

18. Death and Incapacity: Procedures following death or incapacity of partners

19. Dissolution: Circumstances and procedures for LLP dissolution

20. Dispute Resolution: Mechanisms for resolving disputes between partners

21. Governing Law: Specification of Pakistani law as governing law

22. Notices: Process for giving formal notices under the agreement