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The Operating Agreement For Single Member LLC is a crucial document required for establishing and operating a single-member limited liability company in Pakistan. This document becomes necessary when an individual decides to form a limited liability company as the sole owner while seeking personal asset protection and a formal business structure. The agreement must comply with the Companies Act 2017 and related Pakistani regulations, including SECP requirements. It details essential aspects such as capital structure, management responsibilities, operational procedures, profit distribution, and dissolution terms. This document is particularly important in the Pakistani context as it provides clarity on governance and helps maintain the distinction between personal and business assets, which is crucial for maintaining limited liability protection. The agreement serves as both an internal governance document and a demonstration of compliance with local regulatory requirements.

1. Parties: Identifies the Single Member as the sole owner and the LLC itself as parties to the agreement

2. Background: Outlines the context of forming the Single Member LLC and its intended purpose

3. Definitions: Defines key terms used throughout the agreement

4. Formation and Name: Details of LLC formation, registered name, and compliance with Pakistani law

5. Principal Office and Registered Agent: Specifies the LLC's official address and registered agent details

6. Purpose and Powers: States the business purpose and general powers of the LLC

7. Capital Contributions: Details of initial and any additional capital contributions by the Single Member

8. Management Structure: Establishes the Single Member's role as manager and decision-making authority

9. Books, Records and Accounting: Requirements for maintaining financial records and accounting procedures

10. Allocations and Distributions: Procedures for allocating profits/losses and making distributions

11. Tax Matters: Tax treatment and compliance requirements

12. Indemnification: Provisions for indemnifying the Single Member and officers

13. Dissolution and Winding Up: Procedures for dissolving the LLC and distributing assets

14. Governing Law: Specifies Pakistani law as governing law and jurisdiction