In this blog, we’ll walk you through the steps on how to register a company in Pakistan. If you’re planning to start a business in Pakistan, one of the first steps you’ll need to take is to register your company. Registering your company in Pakistan is a legal requirement and ensures that your business is recognized and protected by the law.
Steps to register a Company:
Step 1: Choose a Name for Your Company
The first step in registering your company in Pakistan is to choose a name for your business. Your company name should be unique and not already taken by another business. You can check the availability of your desired name on the Securities and Exchange Commission of Pakistan (SECP) website. It’s important to choose a name that reflects the nature of your business and is easy to remember.
Step 2: Decide on the Type of Company You Want to Register
In Pakistan, you can register different types of companies, such as a sole proprietorship, partnership, private limited company, or public limited company. Each type of company has its own benefits and drawbacks. A sole proprietorship is the simplest and easiest to set up, while a private limited company offers limited liability protection to its shareholders. You should choose the type of company that best suits your business needs and objectives.
Step 3: Obtain Digital Signature and National Tax Number (NTN)
To register a company in Pakistan, you’ll need to obtain a digital signature and a National Tax Number (NTN). You can obtain a digital signature from any of the licensed certification service providers in Pakistan. You’ll also need to apply for an NTN from the Federal Board of Revenue (FBR) to pay taxes on behalf of your company.
Step 4: Register Your Company Name
Once you have your digital signature and NTN, you can register your company name with the SECP. You’ll need to submit an online application on the SECP’s eServices portal and provide all the required information, such as the company name, type of company, and contact details. You’ll also need to pay a registration fee, which varies depending on the type of company you’re registering for.
Step 5: Draft and File the Memorandum and Articles of the Association
The Memorandum and Articles of Association (M&A) are the legal documents that define the purpose, objectives, and rules of your company. You’ll need to draft the M&A in accordance with the Companies Act, 2017, and file it with the SECP. The M&A must be signed by all the subscribers and witnesses in the presence of a notary public or an SECP official.
Step 6: Obtain the Certificate of Incorporation
After the SECP approves your application and M&A, they will issue a Certificate of Incorporation. This certificate is proof that your company is legally registered and recognized by the government. You can use this certificate to open a bank account, apply for a business license, and start your business operations.
Step 7: Register for Sales Tax and Employees’ Old-Age Benefits Institution (EOBI)
If your company is engaged in sales activities, you’ll need to register for sales tax with the Federal Board of Revenue (FBR). You’ll also need to register with the Employees’ Old-Age Benefits Institution (EOBI) if you have employees. This will ensure that you’re complying with the tax and social security laws in Pakistan.
In addition to the steps outlined above, there are some important things to keep in mind when registering a company in Pakistan:
- Foreign companies can also register their businesses in Pakistan. However, they must comply with the relevant laws and regulations, including obtaining necessary approvals from government agencies.
- Depending on the type of business, you may need to obtain additional licenses and permits from local or provincial government authorities.
- It’s important to maintain accurate and up-to-date records of your company’s financial transactions, including income, expenses, and taxes paid.
- It’s recommended to consult with a lawyer or a professional business consultant to ensure that you’re following all the legal requirements and making informed decisions about your business.
- You can also seek assistance from the SECP’s Business Registration Portal, which provides a step-by-step guide to registering a company in Pakistan.
In conclusion, registering a company in Pakistan requires careful planning, attention to detail, and compliance with the relevant laws and regulations. By following the steps outlined in this blog and seeking professional guidance, you can ensure that your business is legally recognized and protected, and set yourself up for success in the Pakistani market.