| Separate Legal Entity |
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| Limited Liability Partnership is a legal entity and a juristic person established under the Limited Liability Partnerships Act 2012. Hence, it has a range of legal capacities including opening of a bank account, hiring of employees, taking on equity or obtaining licenses and more as an independent corporate entity. All partners have no personal liability to the creditors of a company for company’s debts. |
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| Owning Property |
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| Limited Liability Partnership being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No partner can make a claim upon the property of the company – as long as the company is a going concern. |
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| Easy Transferability |
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| Ownership of a business can be easily transferred in a company by appointing and removing partners. The new profit sharing and partner remuneration packages can be determined by partners’ meeting minutes or new partnership agreement. |
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| Uninterrupted Existence |
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| Limited Liability Partnership (PLT.) has ‘perpetual succession’, meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any partners and continues to be in existence irrespective of the changes in ownership. |
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| Exempt from Financial Statement Audit |
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| Limited Liability Partnership (PLT.) can file their annual declaration without engage an external auditor to audit their financial statement. |
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| Lower Income Tax Rate |
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| The highest income tax rate of Limited Liability Partnership (PLT.) is 24% while highest income tax rate of individual can up to 28%. Distribution of income wisely may help in income tax saving. |
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