United Law Company

Partnership & Company Formation

ULC works with clients to determine what form their business should take. The Law Firm’s practical knowledge of the advantages and disadvantages that various business forms present enables it to recommend which form of ownership best suits each client’s unique needs. For example, some clients’ interests may be best served by establishing only a liaison office. For others, the best choice may be a partnership, limited partnership or a limited liability company.

As a closely held business grows, its need for experienced legal assistance can multiply quickly. What started as a simple, straightforward enterprise may soon find itself facing a bewildering host of issues – including questions of ownership, control, employment laws and compensation – to name just a few. As the business develops, the unexpected and the unforeseen are almost guaranteed. ULC has represented hundreds of closely held businesses. These include liaison office, corporations, partnerships and limited liability companies, as well as entities that are family-owned or owned by unrelated parties. Our Law Company’s extensive experience enables it to quickly analyze a client’s situation, and to recommend and implement the legal alternatives that will best achieve the client’s objectives.

ULC's attorney in company law can incorporate the private limited, public limited company, partnership firm, liaison office etc. as per your requirements. Law firm can help you for incorporation / registration of the company on worldwide basis. Law firm’s attorneys are expert in drafting of pre-incorporation agreement, shareholder agreement, promoter agreement, memorandum & Article of Association, partnership agreement, joint venture agreement. ULC’s attorneys render advice and apply for getting all the required permission/ approval for starting the business.

The clients are also assisted to comply with all rules, regulation, laws for the smooth running of the business.

Various Types of Business

a. Sole Proprietorship:

A sole proprietorship business is carried on by an individual on his own account. There is no formal procedure or requirement for setting up this kind of business.

b. Partnership:

Partnership in Pakistan is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The interest of one partner cannot be transferred without the prior consent of the other partners.

c. Company:

The company law in Pakistan has mainly been consolidated in the Companies Ordinance, 1984. A company may be formed as a:

Company limited by shares; or a

Company limited by guarantee; or an

Unlimited company.

The liability of a company limited by shares is limited to the unpaid amount, if any, on the shares held by its members. This entity is further classified into public and private limited companies. Two promoters may form a private limited company by subscribing their names to the Memorandum of Association. To qualify as a private limited company, the Articles of Association (bylaws) of the company must restrict the share transfer rights, limit the number of shareholders to 50 and prohibit any invitation to the public to subscribe to its shares. A private limited company is required to use the words “(Private) Limited” as the last words of its name.

For incorporation of a private limited company, the following documents have to be filed with the Registrar of companies (the “Registrar”):

Memorandum and Articles of Association;

Declaration of compliance with the requirements of the Companies Ordinance, signed by directors or officers of the company;

Notice of situation of registered office of the company; and

List of directors and officers including chief executive, secretary, chief accountant, auditor and legal adviser.

The following additional documents are required for the incorporation of a public limited company:

List of persons consenting to act as directors/chief executive; and

Consent to act as director/chief executive.

The members of a company limited by guarantee voluntarily undertake to contribute certain amounts to the assets of the company on its winding up. This type of company has to use the words “(Guarantee) Limited” as the last words of its name. The unlimited company as the name suggests envisages an unlimited liability for its members.

d. Branch and Liaison Offices:

A foreign company can setup a place of business (which includes a branch, share transfer or registration office, factory, mine or other fixed place of business) in Pakistan without formally creating a separate legal entity. The legal requirement is that within 30 days of the establishment of a place of business, the foreign company is required to file certified true copies of its documents of incorporation in the foreign jurisdiction and other information with respect to its operations in Pakistan with the Registrar. In addition, liaison offices may also be opened by foreign companies for which procedures are quite simple. Permission is granted by the BOI in consultation with the relevant governmental departments.

Practice Spotlight:

Business Formation / Choice of Entity

Buy-sell Agreements

Commercial Financing

Contract Disputes

Drafting Contracts

Employment Contracts

Partnership Disputes

Shareholder Agreements

Business Dissolution or Liquidation

Area of Practice

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