How To Register a Company In Pakistan? – Complete Guide

Starting a business in Pakistan is a promising journey. It requires a clear understanding of the company incorporation process outlined in the Companies Act 2017. Whether you intend to establish a public or private company or even a single-member company, the initial step involves carefully selecting your company’s name and submitting an application.

You can do this through user-friendly E-Services or in a traditional format by following the Companies (Incorporation) Regulations, 2017.

The significance of company registration and the types of companies that can be registered are complex in Pakistan’s business environment.

This article will guide you through the steps and requirements for registering different types of companies, including private limited companies, single-member companies, and more.

We’ll also provide information about the significance of this process and how it paves the way for a successful business journey in Pakistan.

To calculate your taxes accurately, use the FBR tax calculator tool, which you can access here.

How To Register Business In Pakistan? – Procedural Guide

Here, we provide the procedure of SECP Registration Company Pvt Ltd, a Public Company, Or a Singl-Member Company in Pakistan. However, each type of Company Registration in Pakistan is similar, with a slight difference in procedure.

Determine the Type of Company

 

Choose the appropriate company structure based on your business requirements:

• Public Company: Suited for larger businesses aiming to raise capital through share offerings to the public.
• Private Company: Ideal for smaller businesses with limited shareholders and no public share offerings.
• Single-Member Company: Specifically designed for sole proprietors seeking limited liability benefits.

Name Reservation

Select a distinctive and suitable name for your company, ensuring it is not identical or similar to existing company names. Check the availability of your chosen name on the SECP name search at the official website and reserve it if it is available.

You’re going to become a company owner, so you may find our guide informative which is about how to become filer in Pakistan. 

Draft Memorandum and Articles of Association

Prepare the necessary legal documents known as the Memorandum of Association and Articles of Association. These documents outline the company’s objectives, rules, and regulations. You may utilize the SECP’s model documents or customize them to meet your requirements.

Gather Required Documents

When the question arises about the documents required for company registration in Pakistan, here we come with the answer:

• Copies of National Identity Cards (NIC) or passports of directors and shareholders.
• Proof of the registered office address.
• Completed forms, including Form 1 (Declaration of Compliance), Form 21 (Notice of Situation of Registered Office), and Form 29 (Particulars of Directors, Chief Executive, etc.).

For guidance on filing your tax return after registering your company, please read our article on how to file tax returns in Pakistan.

Submission of Documents

Submit the incorporation documents to the SECP through the SECP’s e-services portal for online registration or in physical form using the prescribed formats mentioned in the Companies (Incorporation) Regulations, 2017.

Review and Approval

The SECP will review your application and documents. If they are compliant with regulations and all requirements are fulfilled, the SECP will issue a Certificate of Incorporation, officially recognizing your company’s existence.

Deposit Shares (For Public Companies)

When establishing a public company, shareholders must deposit their respective share amounts into their designated bank account.

Register for Taxes

Register your company with the Federal Board of Revenue (FBR) for income, sales, and professional taxes to ensure compliance with taxation regulations.

Post-Registration Requirements

After incorporation, obtain a Business Registration Certificate and any other licenses or permits necessary for your business activities. Ensure ongoing compliance with reporting and obligations stipulated by the Companies Act 2017.

Seek Professional Assistance (Optional)

Consider consulting professional tax and legal experts in Pakistan to assist with registration, tax planning, and other financial services. This will ensure full compliance with regulations and minimize potential risks.

Company registration requirements and processes may change. It is vital to stay updated with the latest information and consult professionals or the SECP for accurate and current guidance during the registration process in Pakistan.

How Much Does It Cost To Register A Company In Pakistan?

The company registration fee in Pakistan depends on several factors, including the type of company and the mode of submission (online or physical application).

Here is the cost we are breaking down:

1. Authorized Capital: The minimum capital required for company incorporation is PKR 100,000.
2. Incorporation Fee: The incorporation fee depends on whether you submit your application online or in physical form:

• Online Submission: The total incorporation fee for online submission is PKR 1,800.
• Physical Application: If you submit a physical application, the total incorporation fee is PKR 3,500.

These fee structures cover the initial registration and processing of your company’s incorporation documents with the SECP.

It is very necessary for a company owner to know about the different types of taxes in Pakistan. Read our guide to know all taxes in Pakistan.

FAQs

Can I register an SECP company in Pakistan online?

Yes, you can register an SECP company in Pakistan online. The process allows for both offline and online application submissions. Additionally, there’s an option for expedited processing through Fast Track Registration Services (FTRS), which can complete the registration process in as little as 4 hours. This flexibility allows applicants to choose the method and processing speed that best suits their needs and timelines.

How much is company tax in Pakistan?

The company tax rate in Pakistan depends on the type of business. Here are the statutory tax rates:

• The standard corporate tax rate for most companies is 29%.
• However, for banking companies, the standard corporate tax rate is 39%. This rate increased from 35% effective from 1 July 2022.

How can I register my company for free in Pakistan?

To register your company for free in Pakistan, follow these steps:

1. Visit the SECP’s e-services portal.
2. Register yourself on the online portal by providing the required information. This process is quick and easy. It should only take a few minutes.
3. Once registered, you will gain access to services offered by the SECP.

How can I register my small business in Pakistan?

Follow these steps to register a small business in Pakistan:

1. The SECP can help you register your business name.
2. The FBR can provide you with an NTN.
3. If applicable, register for sales tax.
4. Providers of services should register for professional tax.
5. Register for Employees’ Old-Age Benefits Institution (EOBI) if you have employees.
6. Register for Social Security Institution (SSI) if you have employees.
7. Open a business bank account.

Closing Our Discussion

Several key steps are to follow in registering a company in Pakistan, including choosing the right company structure, choosing a unique business name, preparing necessary documents, and meeting tax and compliance requirements. However, the complexity of legal procedures and tax regulations may depend on your business type and location. It is advised to seek professional legal and financial guidance to have a seamless and complete company registration process. Business owners can confidently navigate Pakistan’s dynamic business structure with the right assistance and set their businesses on the path to success. You can also learn about NTN Verification Online by clicking here.