02-19-2009, 07:19 PM
Dear,
Relevant provisions are availble in the Section 14 of the Companies Ordinance and reproducted below for you;
14. Obligation to register certain associations, partnerships etc., as companies.-
(1) No association partnership or company, consisting of more than twenty persons shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association, partnership or company, or by the individual members thereof, unless it is registered as a company under this Ordinance.
(2) <b>Every person who is a member of any association, partnership of company carrying on business in contravention of the provisions of this section shall be punishable with fine which may extend to five thousand rupees and also be personally liable for all the liabilities incurred in such business.</b>
(3) Nothing in this section shall apply to
(a) any society, body or association, other than a partnership, formed or incorporated under any other Pakistan law; or
(b) a joint family carrying on joint family business; or
(c) a partnership of two or more joint families where the total number of members of such families, excluding the minor members, does not exceed twenty; or
(d) a partnership formed to carry on practice as lawyers, accountants or any other profession where practice as a limited liability company is not permitted under the relevant laws or regulations for such practice.
There is no need to pay penality of Rupees 200,000. If any AOP is not required to register under above referred provisions, then its name has no legality.
Regards,
*
Relevant provisions are availble in the Section 14 of the Companies Ordinance and reproducted below for you;
14. Obligation to register certain associations, partnerships etc., as companies.-
(1) No association partnership or company, consisting of more than twenty persons shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association, partnership or company, or by the individual members thereof, unless it is registered as a company under this Ordinance.
(2) <b>Every person who is a member of any association, partnership of company carrying on business in contravention of the provisions of this section shall be punishable with fine which may extend to five thousand rupees and also be personally liable for all the liabilities incurred in such business.</b>
(3) Nothing in this section shall apply to
(a) any society, body or association, other than a partnership, formed or incorporated under any other Pakistan law; or
(b) a joint family carrying on joint family business; or
(c) a partnership of two or more joint families where the total number of members of such families, excluding the minor members, does not exceed twenty; or
(d) a partnership formed to carry on practice as lawyers, accountants or any other profession where practice as a limited liability company is not permitted under the relevant laws or regulations for such practice.
There is no need to pay penality of Rupees 200,000. If any AOP is not required to register under above referred provisions, then its name has no legality.
Regards,
*
