Company Registration in Pakistan
Get professional and end-to-end assistance and register your company in Pakistan today. Fill out the form to get started. Our services include:
- Determining the company type
- Filling out and putting together all the necessary paperwork
- Thorough review of the casefile prior to submission
- Expert consultation & quick turnaround
Best Company Registration
Services in Pakistan
Best Company Registration Services in Pakistan
Types of Business Structures/Legal Entities
The first step of the company registration process in Pakistan is to select the type of entity relevant to your requirements. There are two types of business structures that you can explore based on your requirements. These categories include:
Non-Corporate Structures
Sole Proprietorship
If you're considering a Sole Proprietorship option, the company registration process would be carried out through the Federal Board of Revenue (FBR). A sole proprietorship is an unincorporated business conducted by only one person and does not distinguish between the owner and the company. A sole proprietorship's owner is accountable for the company's debts, losses, liabilities, and all gains.
General Partnership or Association of Persons (AOP)
In an instance where there is more than one individual and no more than twenty, the company would be registered as a General Partnership / Association of Persons with the city's respective Registrar of Firms. A general partnership may have one, two, or both types of owners. General partnerships don't need complex paperwork to be created, making them accessible and affordable. The business requires a bank account, a registered trade name, and a registered tax number.
Corporate Structures
Single Member Company (SMC Private Limited)
A single-member company (SMC), which enjoys the advantages of limited liability, is a private business in Pakistan with just one member or director. All requirements of the Firms Ordinance of 1984 that apply to limited liability companies also apply to sole traders, subject to specific adjustments. Having a single-member company has the following benefits:
⦁ In terms of the law, SMC is distinct from its members.
⦁ The member's liability is capped at the amount of his investment.
⦁ When a member passes away, the firm continues to exist.
⦁ SMCs pay a lesser amount of company tax.
⦁ An SMC's only member has exclusive authority over all corporate operations.
Public Limited Company
In Pakistan, a Public Limited Corporation may be established by three or more people for legal purposes. As with Private and Single-Member companies, the partners must sign a Memorandum of Association, and the public limited company must adhere to the Companies Act's regulations.
The fact that such a corporation is organized for the general public and that its shares are issued with limited liability is one thing to bear in mind. A public offering and the stock market are options for buying these shares.
Public limited businesses can be registered in Pakistan as listed or unlisted entities. The distinction between the two is that the former makes its portion of the shares available for public purchase. On the other hand, an unlisted firm does not sell shares to the general public.
Private Limited Company (PLC)
In Pakistan, a Private Limited Company (PLC) sits between a partnership business and a publicly held public company. It can be registered with a least two individuals. The company and its stockholders each have their own legal identities. The board, which the shareholders choose, works with the CEO to make operational decisions for the business. Depending on its size, a PLC can also need a company secretary, legal counsel, and auditor.
Limited Liability Partnership (LLP)
A key distinction from the conventional partnership under the former Partnership Act 1890 is that under an LLP, each partner is not responsible for the carelessness or wrongdoing of another partner. Each member is only partially personally liable for the firm's obligations in a limited liability partnership (LLP), a general partnership. Partners are not accountable for the torts committed by their other partners. However, depending on the state, they may be for contractual debts.
Registration of Corporate Structures
Why is Company Registration Important in Pakistan?
- Credibility
- Trustworthy
- Creditworthiness
- Transparency
- Native & Foreign Investments
How to Start With Company Registration in Pakistan?
As someone who wants legal counsel regarding the company registration process in Pakistan, you can contact us at MSS & Associates. From the company registration process to fulfilling complex legal requirements, we will handle everything on your behalf.
To get started, the things that you have to send us are:
- Name, addresses, and shareholding of each of the shareholders
- The amount of share capital
- CNIC copies of the shareholders'
- Proposed name of the company
Step-By-Step Guide to Company Registration in Pakistan
You must adhere to the requirements for naming the firm during the company register in Pakistan to receive SECP clearance. The following are rules established by SECP regarding company names:
⦁ It shouldn’t be the same as or confusingly similar to the name of any already-existing business or LLP.
⦁ The business name shouldn’t be offensive or misleading.
⦁ Avoid using terms that might offend a particular group in the company name.
⦁ It must not contain any other words that the registrar deems offensive.
⦁ Your business or corporation name must not prey on people’s religious sensitivities.
⦁ Steer clear of any words forbidden under Section 10 of the Act and Regulation 4 of the 2017 Companies (Incorporation) Regulations.
These are some of the conditions you need to consider when choosing the name of your business or corporation.
⦁ The Association’s articles of incorporation and memorandum.
⦁ Your company’s Memorandum of Association describes how you interact with the outside world and identifies your industry.
⦁ Articles of Association outline how business is conducted daily. The function of the CEO and directors is described. In a nutshell, it describes how the business will function.
⦁ CNIC copies of the board of directors, the CEO, the nominee (for a single-member firm), or copies of the passport in case of a foreigner.
⦁ If you wish to register a specialized business, you will need a NOC, a letter of intent, or a license from the relevant authorities.
⦁ You must include extra information when incorporating a foreign business, such as a list and the names and contact information of the directors. Information about the firm, the directors, and their nationalities. A verified copy of the company charter is required. Both the Memorandum of Association and the Articles of Association must be submitted.
⦁ Subscribers’ consent to the filing of documents.
⦁ A filing or registration fee.
⦁ If the nominal share capital is less than Rs 100,000, the total incorporation charge for a company is Rs. 1800 for online filing. The entire incorporation charge for an offline submission is Rs. 3500.
For instance, if you are considering company registration in Karachi, you can contact MSS & Associates to navigate through the complex and cumbersome processes on your behalf, in this scenario, getting a digital signature.
In addition, you must give a thorough presentation outlining the kind of business and activities of your firm to obtain the certificate of incorporation from NIFT and the digital signature. However, depending on the circumstances, this step’s needs may change.
The following conditions must be met for this application:
⦁ Form for National Tax Numbers (NTN)
⦁ Documentation proving your company’s registration
⦁ The Association’s Memorandum and Articles
⦁ Bank Account Information
⦁ Copies of the firm directors’ Computerized National Identity Cards (CNICs)
⦁ Verified Business Address
Next, you must get a Sales Tax Number (STN) and go through a similar process to register your business for sales tax compliance. Lastly, the process for professional tax is a little different and requires registering your company with the Excise and Taxation Department.
⦁ Institution for Sindh Employees’ Social Security (SESSI).
⦁ For Balochistan and Khyber Pakhtunkhwa, respectively, use (BESSI) or (KPKESSI).
The federal Employees Old Age Benefits Institution (EOBI) requires each business with five or more employees to register with them. Upon retirement, employees will be eligible for an income.
To get this corporate seal, the signature of every director is required. If your documentation is legitimate, SECP will issue you a certificate of incorporation. You will receive it either physically or online. After receiving SECP’s incorporation certification, you can launch your company.
Alternatives to Company Registration in Pakistan
The parent firm wholly owns the branch office. It does not need minimum capital because it is not a limited liability corporation. It takes seven weeks to complete the registration process. If the Board of Investment (BOI) approves, the permit’s duration might range from one to five years.
However, it is essential to remember when applying for company registration in Pakistan that you will not be capable of engaging in commercial and trading activities. Not to mention it’s not subject to any minimum capital either. The only way for a liaison office to function is when it follows the contract’s provisions or the assignment.
One part of the contract also states that you cannot provide technical assistance and product promotion. You are also not allowed to engage in export promotion and other activities. A liaison office in Pakistan typically takes seven (7) weeks to set up. Once approved, your permit’s validity will range from 1 to 5 years. The Board of Investment (BOI) must also provide its approval.