Company Registration in Pakistan for Foreign Nationals

Company Registration Services for Foreigners

A guide on setting up companies in Pakistan as a Foreign Investor

Are you looking to expand your business into Pakistan? Whether you’re from the Americas, China, Europe, Middle East, ASEAN or another region, our comprehensive company registration services are designed to make the process seamless and efficient for you.

Why Choose Pakistan for Your Business?

Pakistan offers a strategic location, a growing economy, and a business-friendly environment. With a young and dynamic workforce, competitive costs, and access to a large market, Pakistan is an ideal destination for foreign investors.

Can a foreigner set up a business in Pakistan?

Yes! Pakistani law allows foreigners to own 100% equity and become Directors in companies they set up. Furthermore, foreign investors can repatriate profits, dividends and service payments to their home country. Some exclusions may apply.

What are the different business structures available to a foreigner?

An individual who is a foreigner may register their business as:

• Private Limited Company (Similar to LLC)
• Limited Liability Partnership Firm (LLP) with a Partner
• Partnership Firm with a Partner
• Sole Proprietorship Business
  
  

  Foreign entities/companies may register as:

• Branch Office of an established Foreign Company
• Liaison Office of an established Foreign Company
• Subsidiary or a Private Limited Company (LLC) that is owned and under control of a Parent Foreign Company
• Limited Liability Partnership Firm (LLP) with a Partner
• Partnership Firm with a Partner
  
  

  What is the difference between a Branch Office, Liaison Office and a Subsidiary company?

  
  Branch Office

  Foreign companies are allowed to register as a Branch Office in Pakistan. The permission is granted by the Board of Invesment (BOI). The main role of a Branch Office is to fulfill its contractual obligations with the public or private sector in Pakistan. A contract with a private or public sector organization is essential in order to obtain permission and the activity allowed is restricted to the work mentioned in the agreement. Note that a Branch Office is an extension of the head office with right to generate income in Pakistan and is not considered to be a separate legal entity from the Parent company. In other words, it has no separate legal standing of its own.

  
  Liaison Office

  Foreign companies may establish a Liaison Office or Representative Office with the permission of the Board of Invesment (BOI). Liaison office is suitable for promotion of products, provision of technical advice & assistance, exploring the possibility of collaborations etc. It can primarily only undertake liaison activities and act as communication channel between the Parent foreign company and parties in Pakistan. Unlike a Branch Office, Liaison Office is not allowed to undertake any commercial activity nor can it generate any revenue. Liaison office is not considered to be a separate legal entity from the Parent company.

  
  Subsidiary Company

  Foreign companies may incorporate a new private limited company in Pakistan under their ownership and control. Once incorporated, the company will have its own legal status in Pakistan and will be considered to be distinct from its Parent company. This type of entity can be directly registered with the Securities & Exchange Commission of Pakistan (SECP) and does not require prior approval from the Board of Investment. Alternatively, a foreign entity is also allowed to purchase shares in an existing Pakistani company if it does not incorporate a new company. The obvious advantage of forming a subsidiary or a private company is that there are no restrictive prerequisites and limitations like there are in case of Branch and Liaison Offices.

  
  What is the difference between LLC and a Limited Company?

  In Pakistan, a company may be set up as a private limited or public limited entity. Private limited companies in Pakistan are similar to what are known as limited liability companies (LLC) abroad, but they are not exactly the same thing. The key difference between a LLC abroad and a private limited company in Pakistan is that LLC taxes are paid by the directors of the company individually rather than by the company itself. There is no tax on the income generated by the LLC. In case of a private limited company structure available in Pakistan however, the company pays taxes first and then the directors pay taxes on their respective individual incomes.

  
  What is the minimum number of Directors or Shareholders a company may have?

  Generally a private limited company has 2 directors whereas public limited companies have a minimum of 3 directors. However, you can also setup a single member private limited company (SMC) with one director only. For a SMC it is mandatory to provide details of a nominee (next of kin) to look after affairs in case of single member’s death or incapacity. Not sure about which business structure to choose? Read our Guide.

  
  In order to register a private limited company as a foreign national, you need to provide us the following information/documents:

• Proposed name of your company (Give three names in order of priority).
• Nature and scope of business.
• Names of Foreign Directors and Foreign Shareholders.
• Passport Copies
• Picture of the Director/Shareholder
• Undertaking (We will provide template)
• CV / Resume of Foreigner
• Authorized and paid-up capital information.
• Addresses, phone numbers, emails and related information
• You may contact us for the full list of requirements.
  For Tax Rates on companies read our Tax Guide.
  

  
  Post Incorporation Requirement – After Company is Registered

• File Form 19 declaring ultimate beneficial ownership
• File Form 9 with details of Auditor (only in case paid up capital is more than Rs. 1 million) and Legal Advisor (only in case paid-up capital is more than Rs. 7.5 million).
• Submit Withholding Statement with FBR showing all payments made by company in which tax was withheld from vendors, suppliers, employees etc. Paid monthly and filed quarterly.
• File GST returns 18th of every month (if you are registered for GST with FBR, KPRA, PRA, SRB etc).
• File Form 19, Form A & Form 9 (AGM) with SECP by October 31 of every year.
• File Annual Tax Return at the end of its financial year.
• Depending on the nature of your business, Register for Professional Tax, Labour Department, EOBI, Social Security and others as applicable.

  
  Don’t want to deal with the complexities of company registration, legal compliance, and payroll management? Our Employer of Record, Payroll & Managed Offshore Operations Services can handle everything for you. 

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Services d’enregistrement d’entreprise au Pakistan
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Unternehmensregistrierungsdienste in Pakistan
Servicios de registro de empresas en Pakistán
パキスタンにおける会社登録サービス
خدمات تسجيل الشركة في باكستان

Ready to take the next step? Contact us today to learn more about how we can help you establish your business in Pakistan. Our team of experts is here to guide you every step of the way. You can email us or Call us, WhatsApp, or WeChat with us on +92-333-522-3360.

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