Karachi: The Union of Small and Medium Enterprises (UNISAME) welcomed the incorporation concepts of the Securities and Exchange Commission of Pakistan (SECP) for the SMEs as limited liabilities partnerships (LLP) to enable them to join the mainstream and urged the SECP to facilitate them with simple procedures of incorporation and of exit as well.
President UNISAME Zulfikar Thaver said indeed SECP is taking positive steps and encouraging the sector by introducing single person companies as well as partnerships and since most of the SMEs are family businesses and some are proprietary concerns both these concepts would be beneficial to the entrepreneurs.
Thaver urged the SECP to recommend to the finance ministry to reduce the rate of taxes to make it attractive for the SMEs to incorporate and build their status and image on modern lines.
He complained that the exit facility announced by SECP is for specific short durations only and urged SECP to keep it open to enable those entrepreneurs who wish to wind up to exit smoothly without any cumbersome procedures. This would enable them to get incorporated without apprehensions of the difficulties for exit if the incorporated partnership fails. The exit clause would also favour entrepreneurs who would like to use the LLP as a vehicle company to sell projects on turnkey basis on completion of the project.
Secondly he also strongly advocated LLP for professionals, for services oriented businesses, traders and transaction partners.
The Union also appreciated the Mortgage Refinancing Company (MRC) being set up by the State Bank of Pakistan and SECP and said it would go a long way in boosting the economy and the construction industry. The MRC would also resolve the housing problems of the different classes of people in the society.
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