Legal matters in Pakistan seem so complicated that forced people to pay huge fees to professionals whose businesses flourish due to a lack of this awareness among common people.
So, if you are a potential business owner who wishes to register a company in Pakistan, now you can easily apply online without money on these so-called professionals or the hassle of filing a physical application. Want to know how? This article explains the complete process of registering a business in Pakistan with the SECP.
SECP (Securities & Exchange Commission of Pakistan):
Securities and Exchange Commission of Pakistan (SECP) was established in 1999 with the main objective of regulating the corporate sector and capital market. Due to the digitization initiatives recently introduced by the Government of Pakistan, it has been given considerable importance. This government regulatory agency now functions digitally through a full-featured online portal, aimed at facilitating the business community in the country.
Types of Business Entities with Capital Requirements:
There are three general types of businesses that can you register in Pakistan. Explore business categories at City Book.
Single Member Company:
As the name suggests a Single Member Company (SMC) is formed by an individual. The number of members of a company is limited to one and it cannot register any share(s) in the name of two or more persons to hold one or more shares jointly. The minimum amount of authorized capital for the incorporation and registration of a Single Member Company is PKR 100,000.
Private Limited Company:
Private Limited Corporation can be legally formed by two or more people. A company can limit the number of its members to fifty, excluding persons who are in the employ of the company. The minimum amount of authorized capital for the incorporation and registration of a Private Limited Corporation is PKR 100,000.
Public Limited Company:
The Public Limited corporation can be established by three or more people for legal purposes. Its partners have to add their names to the Memorandum of Association. This type of company is set up for the general public, and its shares are offered with limited liability. These shares can be purchased on the stock market or through a public offering. Two types of public limited companies can be registered in Pakistan, listed and unlisted. The minimum amount of authorized capital for the incorporation and registration of a Public Listed Company is PKR 200 million and the Unlisted Company is PKR 100,000.
Process of Register a Business in Pakistan:
Following is the complete procedure for business registration in Pakistan.
Approval of Company Name:
The first step of company registration in Pakistan is choosing a name for your business. It’s important to come up with a unique company name that portrays the nature of your business. Before deciding on a company name you should follow the restrictions and guidelines to ensure that the name does not include any prohibited words. After deciding on a unique name for your company or firm, you need to create an online account with SECP and check name availability. If the name is available, you can preserve it for your Business.
Reserved Business Name:
Search business names by visiting business listing website in pakistan and Follow the below steps to reserve your business name:
- First Log in to e-services on the SECP website.
- You can choose the Fast Track Registration Services (FTRS) for same day registration services.
- Then fill out the online form by entering the required information and submit it.
- You will receive a security code on your phone or email as selected by you, then a PIN will be generated after the security code is verified.
- The challan form that has been generated should be submitted to selected branches of MCB or UBL or the fee can be deposited online through your credit or debit card.
- If the company name does not contain any prohibited words, you will receive a confirmation message within one day that the company name has been saved on your credentials.
Submission of Documents:
- Once the company name is approved, you need to submit the documents to the Securities and Exchange Commission of Pakistan (SECP). The following documents are required to register a company in Pakistan:
- Articles of Association and Memorandum
- CNIC photocopies of the directors, CEO, nominee, or photocopy of passport in case of foreign nationals.
- If you want to set up a specialized business, a NOC or Letter of Intent from the concern authority is needed.
- Company Registration Fee Slip
Certificate of Incorporation:
Once you have submitted the required documents and fees, the SECP evaluates them. and then give the requisite approval. Then, the National Institution of Facilitation Centre (NIFC) will grant to the company. Once the SECP verifies and approves your documents, it issues a Certificate of Incorporation, which is formal and legal approval to start a business in Pakistan.
Once the company has been registered, shareholders must deposit the amount corresponding to their shares to the company’s bank account.
Registering for Income & Sales Tax:
The final stage of company registration in Pakistan is registration with the Federal Board of Revenue (FBR) and issuance of a National Tax Number (NTN). An application for this is submitted to the Regional Tax Office of the Federal Bureau of Revenue (FBR). The following documents will be required to get NTN number.
- Properly filled NTN form
- Proof of registration
- Articles of Association and Memorandum
- Valid bank account number
- Copies of valid I’D cards of directors
- Company address