How to Register a Company in Pakistan

How to Register a Company in Pakistan

The business community of Pakistan continues to operate their businesses traditionally. They don’t bother to start a business because it is deemed to be too complicated for them. Their preferred form of business is a sole proprietorship or an association of individuals. To gain legal convenience, they neglect to establish a company to benefit from tax advantages limit their liability, and extend beyond an area. This guide will explain how to register a company in Pakistan and what are the advantages.

Why Should You Register a Company in Pakistan?

Once you begin an enterprise, it’s either a sole proprietorship or a partnership. When you expand and want to expand into additional regions, you require the most solid and stable business structure. It is possible to present your business as a solid one, raise capital, and reduce your risk. To do this you may require a registration of a company in Pakistan. Corporate entities help you:

Limits your liability- If you register the company, it acquires its assets and wealth which are separate from yours. It is an independent entity, and any possibility of bankruptcy will not impact your wealth. It is possible to lose everything you put in, which is only your risk.

Access Capital-  It isn’t easy to raise capital when you own a business that is not recognized by a regulatory authority. Investors want to invest the funds that they have earned into companies that are legal and have a history of success. Make sure that your investors and clients are protected and that your business is operating lawfully.

Credibility– A business which is registered with an organization like SECP which is the Securities and Exchange Commission – in Pakistan is believed to be more reliable than a brick-and-mortar shop that could be shut down or squatters just a few hours after acquiring funds or defrauding the public. The company must be registered with authorities like the Federal Board of Revenue, pay taxes and declare them, and file the required paperwork each year.

Rapid Growth- Credibility and having access to capital can boost an enterprise. It has the means to explore new initiatives and avenues, advertise services or products to other regions, and increase growth.

The additional benefits of registering your company in Pakistan could include the possibility of obtaining tax credits in a variety of sectors, such as exporting goods and services that are specifically related to IT. The government also helps businesses that are honest and fair in their operation and helps to contribute to the growth of the economy in the nation. Businesses can take part in numerous international and national events that the government organizes to assist in expanding their operations beyond the borders.

What Kind of Business Can be Incorporated in Pakistan?

The majority of people aren’t aware of the many legal options for registering an organization. They’re unable to identify and distinguish between the different options. Before you decide to start a business in Pakistan you will be able to get an overview of various types of companies to select which one best fits your business’s model.

Single Member Company SMC

A business that is created by one member is referred to as a single-member business. In this case, ownership remains with one individual. Stocks or shares of a company are not registered to two or more members. It is an alternative for sole proprietors to have their businesses registered without having to involve members and reaping the benefits of being a corporation.

Private Limited Company

Two or more members who wish to register the business as an entity that is legally recognized may apply an application for the formation of a private limited corporation. The Companies Act of Pakistan requires to lay down the rules for the creation of a limited liability corporation. It permits the company to determine the number of members it has and limits sharing of the shares. According to law, this type of company isn’t permitted to sell shares or other financial instruments to the general public.

Public Limited Company

For a business to be registered with the public as a limited corporation the minimum requirement is three members. It is different in comparison to a private-limited business in that it is created to serve the public at large. The company can provide shares for sale to the general public via a stock exchange or the IPO (initial public offer) by using. Companies that manage financials or banks are involved in IPOs on behalf of companies. It is a greater amount of capital due to the possibility of public financials.

Public limited companies may either be listed one or a non-listed one. A listed company is able to acquire funds and other financial assets that are available to the common public. An unlisted, non-listed public company is not permitted to sell shares publically.

Can a foreigner Create An Organization in Pakistan?

Following a legal procedure and paying the minimal company registration cost in Pakistan people from all countries in the world, except for Israel can form an enterprise. They are free to register any type of business under their credentials from abroad.

How Can I Register a Company in Pakistan?

The registration of companies in Pakistan is an easy process. You must be aware of and select a legal type of corporate entity to run your business. We’ve discussed various legal options in this article. You can select depending on the minimal requirements regarding capital, shareholders, and liability. Once you have a good understanding of it, you can move to register your company using the following steps:

Step 1: Select the Business Structure You Want to Use.

Based on the business model you have as well as the founders, members, and funds that are available; you may choose the type of company we described in the previous article. A small-sized business owner who wants to be solely responsible for the business for the foreseeable future could opt for an uni-member business or a sleeping partner for an LLC private. Any business can begin with a small size and expand since there is always the possibility of changing an SMC into a Private. Ltd. one, or expand and make a company public.

Step 2: Approve a Company Name

SECP, the most prestigious executive body for corporate governance, offers the convenience of online registration for companies in Pakistan. The business community can request a business name either on its own or with the registration procedure. However, you must ensure the name of the company you are proposing is in use and meets the legal requirements. It must be distinctive and pertinent to the company and not be in opposition to other brands and businesses.

Utilize to access the SECP’s eServices Portal, register yourself, select your name, then submit it following payment of the fee of Rs. 200 offline approval of the company’s name You may be required to fill out an INC-Form-1 and pay an amount of Rs.500.

Step 3: Create the Requirements Documents

The registration process for a company in Pakistan could require you to create the necessary documents to prove the ownership of your business. By the Companies Act, you need to submit:

  1. Copy of the Computerized National Identity Card (CNIC) of all founding members.
  2. The evidence for the office registered.
  3. Memorandum of Association to declare the company’s name and its members.
  4. Articles of Association to define the business’s mission and operation.
  5. Statement of the bank that proves the capital needed has been paid.
  6. Directors’ information and nationality when the registration of a foreign company
  7. Formal registration fee slip

To register as a private limited or single-member firm, the registration cost in Pakistan is Rs. 1800 for online applications and Pkr. 3500 if you apply the traditional method.

Step 4: Purchase Digital Signature Certificates (DSC)

Gather all documents and submit an application for digital signature certificates to be issued to the directors, members or shareholders. This can make the process easier by allowing shareholders to sign documents for company registration electronically. They won’t have to visit the registrar’s offices for signature purposes only.

Step 5: Get an Incorporation Certificate

After obtaining the necessary documents and having the documents signed by your shareholders You are now ready to send documents to SECP. SECP office. Because you’ve already approved the name of your company this process will be simple and easy. The Commission will look over your application, along with the documents and information required to issue the Certificate of Incorporation. This is your authorization to begin lawfully operating your business.

Step 6: Open a corporate Bank Account

A personal bank account is not trustworthy and legitimate to be used for business transactions. So, it is necessary to establish corporate bank accounts for legal transactions. Banks generally require certification that the company is incorporated, NTN and a little more information to open a corporate account.

Step 7: Deposit Shares

All shareholders or members must deposit the capital amount of their shares into the company’s account at a bank.

Step 8: Apply for a National Tax Number (NTN)

To regulate your business and taxation of income, you have to be registered at the Federal Board of Revenue and they will issue you with a National Tax Number. The use of NTN is typically required in business contracts and transactions. It is included in annual tax returns to make sure that the company has paid the tax due and adheres to the tax laws.

Step 9: Obtain the Sales Tax Registration (if required)

Your business must tax sales if it sells local-produced products or imported. By the Sales Tax Act 1990 it is possible for a company to be exempt from tax if it is involved in computers, medicines, poultry feed, as well as non-processed agricultural goods. If your company is exempt, then you can bypass this step, but if not, you will need to sign up to pay the tax. You will be issued a Sales Tax Registration Number (STRN) add it to each receipt and submit your tax payment by the 15th of the month following.

Businesses may have to sign up with Social Security as well as EOBI (Employees Older-age Benefits Institute) to guarantee the health and safety of their workers. In the beginning, you may not require it however, as your staff increases, you must think about it. There are numerous lucrative businesses in Pakistan that you can begin growing, expand, and eventually incorporate.


SECP has streamlined the process and made it easier for business people to sign up companies with no difficulty. Online registration of companies in Pakistan allows people to continue receiving all the necessary information from their homes and at the office. They can get the documents required get name approval, and avoid many trips to the office of the registrar. This article will also outline the essential steps to follow to start registering a business in Pakistan. If you follow each step, you’ll be able to make it your own, or there are companies to employ for secretarial assistance.

It’s an overall guideline to learn about the requirements to register a business or a company in Pakistan. The fees for registration and the requirements can change over time. To ensure that the information is current and accurate You are advised to seek the advice of a legal expert or go to SECP’s official website. SECP.

Leave a Reply

Your email address will not be published. Required fields are marked*