Ready to Launch Your Business in Pakistan? Here’s Your Ultimate Guide to Company Registration!

Registering a company in Pakistan can be an arduous but worthwhile process for entrepreneurs who are looking to get their businesses off the ground. From completing paperwork, collecting documents, and filing with governmental offices, registering your company in Pakistan requires both patience and an understanding of the laws and regulations regarding what is needed from you as a prospective business owner. This blog post aims to break down the steps necessary for any entrepreneur looking to register a company in Pakistan, detailing all required documentation and official procedures of registration so that anyone considering this path can confidently move forward towards achieving their goals without feeling overwhelmed by the intimidating bureaucracy of it all.

Understand the Requirements of Company Registration in Pakistan

Starting a business in Pakistan can be a daunting task, especially when it comes to the requirements of company registration. However, understanding the process can be a crucial step in making your entrepreneurial dreams come true. To register a company in Pakistan, you need to follow certain legal procedures and fulfill certain requirements set by the Securities and Exchange Commission of Pakistan (SECP). These include reserving your company name, filing the incorporation documents and obtaining a National Tax Number from the Federal Board of Revenue (FBR), and more. It may seem overwhelming, but taking the time to understand these procedures can save you a lot of time and stress in the long run. So, buckle up and dive into the world of company registration in Pakistan!

Research the Different Types of Companies and Their Benefits

When it comes to companies, there are many different types to consider – from sole proprietorships to partnerships, and Limited Liability Companies (LLCs). Each type offers its own set of benefits, such as liability protection or tax advantages. For example, a sole proprietorship might be the simplest type of company to set up, but it doesn’t offer the same level of liability protection as a limited liability company, or LLC while a partnership is a good option when two or more people want to share ownership of a business. Understanding the different types of companies and their benefits is an important step in starting and growing a successful business. There are three types of limited liability companies that can be formed in Pakistan under the Companies Act 2017.

Private Limited Company

Minimum two shareholders/directors are required in order to register Private Limited  company. The incorporation time of a Limited Liability Company in Pakistan with SECP & FBR is 2 working days.

Single Member Company (SMC)

Only one shareholder/director is required in order to register a Single Member Company. The incorporation time of a Limited Liability Company in Pakistan with SECP & FBR is 2  working days.

Public Limited Company

Minimum three shareholders/directors are required in order to register a Public  Limited company. A Public Limited Company has its shares offered to the general public. Those shares are with limited liability. Anyone can acquire the shares. It may be through a public offering or through trading in the stock market.

Gather the Necessary Documents to Register Your Company

Starting a company is an exciting journey, but it requires careful planning and paperwork to legalize the business. One of the crucial steps to register your company is gathering the necessary documents. Normally following documents are required for registration of a Private Limited Company.

  • Pakistani nationals need a valid CNIC, and foreign nationals need a valid passport
  • Articles of Association (rules and regulations that govern the company) and Memorandum of Association (contains information for company incorporation)
  • CNIC copies of the directors, CEO, nominee, or copy of passport in case of foreign nationals
  • A business address
  • If you are planning to set up a specialized business, you will require a NOC or letter of intent from the concerned authority.
  • Registration fee slip

So, it’s time to roll up your sleeves and start organizing the necessary documents to register your company!

Choose a Name for Your Business and Get It Approved by the Appropriate Authorities

Choosing a name for your business is like naming a child. It’s a big responsibility, and the name you choose will be with your business for a long time. It should also accurately represent what your business does. Once you have chosen a name, you need to get it approved by the SECP. The name should comply with the guidelines provided by the SECP. Do your research, and take the time to find a name that you’re proud to put on your business. If you also want to register the Company name as its trademark you may also register it with the Intellectual Property Organisation of Pakistan (IPO).

Submit All Required Documents to the Registrar of Companies in SECP

When it comes to starting a business or making changes to an existing one, submitting documents to the Registrar of Companies is a crucial step. It’s important to ensure all necessary paperwork is correctly completed and submitted online through the SECP e-services portal to avoid any legal issues down the road. By submitting these documents on time, business owners can ensure that their company is operating in compliance with the law and set up for long-term success.

After submission of all documents the registrar office will issue a certificate of incorporation which will be conclusive evidence that the Company has been successfully registered with Government of Pakistan. If you are foreign national or foreign entity and want to setup a business in Pakistan, Please visit International Desk section of our website.

Post-Registration Tasks:

  • Appointment of the First Chief Executive Officer (CEO) of the Company through Form 29.
  • Appointment of Auditor of the Company through Form 29. The Auditor must be a Chartered Accountants (CA) firm.
  • Registration with the Federal Board of Revenue (FBR) for obtaining a National Tax Number of the Company.
  • Filling of Annual Corporate  Returns i.e. Form A & Form 29 after the end of every financial year.
  • Filling of Annual Tax Return to FBR

In order to ensure success in establishing your own business in Pakistan, it is essential that all the necessary steps are taken when company registration in Pakistan. To this end, research different types of companies and their benefits, gather all documents needed for the registration process and choose an appropriate name for your business. Furthermore, obtain necessary licenses and approvals in line with laws and regulations as per SECP. By doing so, you will be able to get started on the right track without any legal hassles. Ultimately, taking these steps from the very start will set up a strong foundation for a successful business venture that has long-lasting growth potential in Pakistan.

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

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