Company Registration in Pakistan

HOW TO REGISTER A COMPANY

A step by step guide on registering companies in Pakistan.

A company is a business that is set up as separate legal entity from its owners. The words “Private Limited” or “Public Limited” are added at the end of the name. These are sometimes known as limited liability companies (LLC) in other countries, 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.

There are members or shareholders who own the company. These members elect a board of directors. There is one managing director (CEO) who along with the board makes operational decisions. The shareholders or owners are protected from the debts and liabilities of the corporation, and the corporation pays corporate income taxes. These taxes are paid on profits rather than the income. A company may also require a company secretary, legal advisor and auditor depending on its capital size (does not apply to smaller companies). There is more paper work and filing work required for this type of business structure. But the obvious advantage is limited liability of the owners as well as transparency in the operations. Companies are also generally perceived to be more authentic and trustworthy when compared to other business structures. Companies are registered with the Securities & Exchange Commission of Pakistan (SECP).

Please note 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 (known as SMC) with one director only. For a SMC it is mandatory to provide details of a nominee (must be a next of kin) to look after affairs in case of single member’s death or incapacity. A company is different from sole proprietorships, partnerships and limited liability partnerships. Not sure about which business structure to choose? Read our Guide.

In order to register a private limited company all you need to do is provide us the following information/documents:

• Proposed name of your company (Give three names in order of priority).
• Nature and scope of business.
• Full name and colour CNIC copies of shareholders/members (members or initial subscribers).
• Names of Directors
• Name of CEO
• Paid-up capital by each member (in Rupees) – actual investment money to be put into company account by each shareholder.
• Authorised share capital (in Rupees) – think of it as a license for the amount above. The paid-up capital above cannot be more than this license / authorised capital amount.
• Office address (You can provide residential address as well)
• Residential addresses of all directors and shareholders (members).
• Valid Cell Phone Number of each member.
• Valid Email Address of each member.
  
  

  Are you a Foreign National looking to register a business in Pakistan? See information for foreigners.
  
  

  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 29 (AGM) with SECP by end of October 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.

Pvt. Limited Company Registration Packages

Bronze

Rs. 15,000 + Govt Fees
Rs. 18,000

1 to 2 Member Company
(Single Member Company SMC or 2 Local Directors/Members)

SECP + National Tax Number Registration

Memorandum and Articles of Association

*includes Company NTN Registration

*includes individual Director / Member NTN Registration

*includes certified digital documents

*excluding SECP / Govt fees

*Limited time offer

Silver (Popular)

Rs. 20,000 + Govt Fees
Rs. 25,000

1 to 4 Member Company
(Single Member Company SMC or 4 Local Directors/Members)

SECP + National Tax Number + Form 45 + Bank Account Advisory

Memorandum and Articles of Association

*includes Company NTN Registration

*includes Bank Account Opening Advice

*includes individual Director / Member NTN Registration

*includes certified digital documents

*includes filing of Form 45 (Ultimate Beneficial Ownership)

*excluding SECP / Govt fees

*Limited time offer

Gold

Rs. 32,000 + Govt Fees
Rs. 40,000

1 to 6 Member Company
(Single Member Company SMC or 6 Local Directors/Members)

SECP + National Tax Number + Sales Tax + Form 45 + Bank Account Advisory

Memorandum and Articles of Association

*includes Company NTN Registration

*includes Company Sales Tax Registration (for any one Province)

*includes Bank Account Opening Advice

*includes individual Director / Member NTN Registration

*includes certified digital documents

*includes filing of Form 45 (Ultimate Beneficial Ownership)

*excluding SECP / Govt fees

*Limited time offer

Still need help? Our company registration services start as low as Rs. 20,000* only. Call us on +92-333-522-3360 or email us. We make sure that our customers always get served quickly and effectively without charging a fortune other lawyers and agents would otherwise charge.

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