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Registration of Private limited Company in Islamabad

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Doing Business in Pakistan

Navigating business landscape in an other country can be challenging, and this guide aims to equip you with the knowledge to make informed decisions for your business venture in Pakistan.

Legal Aspects of Doing Business in Pakistan: A Comprehensive Guide for Foreign Investors

Usman Rasheed and Co Chartered Accountants a leading Pakistani financial, tax, and corporate advisory firm with extensive experience working with foreign businesses and entities, welcomes you to this comprehensive guide on the legal aspects of doing business in Pakistan. We understand that navigating a new legal landscape can be challenging, and this guide aims to equip you with the knowledge you need to make informed decisions for your business venture in Pakistan.

Company Formation and Registration:

  • Key Legislation: The Companies Act, 2017 (Act No. XVIII of 2017)
  • Business Structures: Pakistan offers various business structures, including:
    • Private Limited Company (Ltd.) – Most popular choice for foreign investors.
    • Public Limited Company (PLC) – Suitable for larger businesses seeking public listing.
    • Single Member Company (SMC) – One shareholder with limited liability.
    • Branch Office (BO) – Extension of a foreign company with limited operational freedom.
  • Registration Process: Involves obtaining a name approval, filing incorporation documents with the Securities and Exchange Commission of Pakistan (SECP), and opening a bank account.
  • Foreign Investment Regulations: The Foreign Investment (Promotion and Protection) Act, 2022 (FIPP Act) governs foreign investment. It offers incentives and guarantees repatriation of profits under certain conditions.

Taxation:

  • Income Tax Ordinance, 2001: Sets out income tax framework for resident and non-resident companies.
  • Tax Rates: Corporate tax rate for companies is 29%.
  • Sales Tax: A value-added tax (VAT) levied on the supply of goods and services. The standard rate is 18%, with exemptions for certain items.
  • Tax Compliance: Filing tax returns and adhering to withholding tax regulations are crucial.
  • Double Taxation Agreements: Pakistan has double taxation agreements with more than 66 countries to avoid double taxation of income

Employment Laws:

  • Industrial Relations Ordinance, 2002: Provides framework for employee rights and employer obligations.
  • Minimum Wage: Set by the federal government and may vary by province and industry.
  • Working Hours: Standard workweek is 48 hours, with mandatory rest periods and overtime regulations.
  • Social Security: Employers contribute to social security schemes for employee benefits.
  • Termination: Requires following due process and providing proper notice or severance pay.

Intellectual Property (IP):

  • The Patents and Designs Act, 2000: Protects inventions and industrial designs.
  • The Trade Marks Act, 2004: Safeguards trademarks and brand names.
  • The Copyright Ordinance, 1962: Grants protection to literary, artistic, and musical works.
  • Registration: Registering IP rights with the relevant Pakistani authorities is recommended.

Regulatory Environment:

  • Sector-Specific Regulations: Many sectors, like banking and insurance, have specific regulatory bodies.
  • Foreign Exchange Controls: The State Bank of Pakistan regulates foreign exchange transactions.
  • Environmental Regulations: Businesses must comply with environmental laws and obtain necessary permits.

Dispute Resolution:

    • Litigation: Courts in Pakistan provide legal recourse for disputes.
    • Arbitration: Alternative Dispute Resolution (ADR) mechanisms are increasingly popular.

Benefits of Working with Usman Rasheed and Co.

Our team of experienced professionals can assist you with every step of your journey in Pakistan, including:

  • Company registration and incorporation
  • Tax planning and compliance
  • Setting up payroll and employee benefits
  • Obtaining necessary permits and licenses
  • Negotiating contracts and agreements
  • Navigating regulatory challenges

Let’s connect and discover how we can help your business thrive in Pakistan

best financial advisors in Peshawar

Why Choose Us?

  • Expertise:Usman Rasheed & Co Chartered Accountants (URCA), a leading chartered accountancy firm in Pakistan, leverages its extensive experience to provide a comprehensive suite of financial services. These xservices include audits, tax planning & compliance, accounting, financial and corporate advisory
  • Client-Centric Approach: We believe in building long-term relationships with our clients based on trust, integrity, and transparency. 
  • Comprehensive Services: Whether you’re a small business owner navigating tax regulations or a corporation seeking strategic financial guidance in Pakistan, we’ve got you covered. Our services include tax planning, auditing, corporate and financial advisory. We take a holistic approach to ensure all your financial needs are met.
  • Local Market Knowledge: As a local Pakistani finanical advisory firm, we stand out with our in-depth knowledge of the Pakistani market. This goes beyond just the numbers. We have a keen understanding of the market dynamics, navigate complex regulations with ease, and appreciate the cultural nuances that can impact your business. This local expertise translates into valuable insights and strategic guidance, giving your business a significant competitive edge in the Pakistani market.

About Us

Usman Rasheed & Co Chartered Accountants is a leading financial advisory and audit firm in Pakistan, having offices in Islamabad, Quetta, Lahore, Karachi, Peshawar & Gilgit. The firm is providing Audit, Tax, Corporate, Financial, Business, Legal & Secretarial Advisory services and other related assistance to local and foreign private, public and other organizations working in Pakistan

Contact Us

usman@urcapk.com

+92 51 848 4321

+92 314 599 5154

Head Office: 7th Floor EOBI House G 10/4 Islamabad
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