Guide on How to Obtain an Export Licence in Pakistan
5/23/20243 min read
One of the best ways to reach new markets and boost sales is to grow your company through exporting. You may find out which business entity is most suited to apply for an export licence by using this guide, which will also take you through the most recent policies and procedures.
Overview: Why Having an Export Licence Is Important:
Companies could legally export goods by acquiring an export licence, a government approval which conforms with the regional and global trade legislation. An export licence legitimises their export activity and establishes credibility with international buyers and partners.
Requirements for Obtaining an Export Licence in Pakistan:
Companies in Pakistan need to be enrolled with the Federal Board of Revenue (FBR) in order to be entitled to an export licence.
· Get the National Tax Number (NTN).
· Get the Sales Tax Registration Number (STRN), if applicable
· Comply with the foreign exchange policies set forth by the State Bank of Pakistan.
Step-by-Step Process Obtaining an Export License
Business Structure:
Make your mind up whether you want to operate as a Sole Proprietorship, Association of Persons (AOP), or Private Limited Company. Each structure has its own advantages and suitability depending on your business needs.
*For More details on the benefits of the company, read the article through this link: https://www.mfak.net/how-to-register-a-company-in-pakistan
Register Your Business:
For Sole Proprietorship: Register with the FBR as Individual. Suitable for small-scale operations with a single owner. However, it does not offer limited liability protection.
For AOP: Register with the Registrar of Firms through a partnership deed. Suitable for partnerships with shared responsibilities. It provides better resource pooling but still no limited liability protection.
For Private Limited Company: Register with the Securities and Exchange Commission of Pakistan (SECP). Best for businesses looking to expand and attract investors. It offers limited liability protection, easier access to capital, and more room for growth.
Approve a Company Name:
If registering a company, then check the availability and uniqueness of your company name through SECP’s eZfile Portal.
Arrange Required Documents:
ID copies of founders/directors.
Proof of business address.
Memorandum and Articles of Association for companies.
Business plan and purpose documents.
Get a Certificate of Incorporation: Once your application is approved, you will receive a Certificate of Incorporation.
Open a Corporate Bank Account: Open a corporate bank account, which will separate your personal finances from the business finances
Deposit Share Capital: Ensure that each member or shareholder deposits their share capital into the company's bank account.
Register for National Taxation Number (NTN): Register with the Federal Board of Revenue (FBR) for tax purposes.
Obtain Sales Tax Registration: If your business sells taxable goods, register for sales tax.
Submit Application through PSW or WEBOC: Fill out the application form and submit it along with the required documents.
Latest Policies and Regulations
The Export Policy Order, 2022 (EPO-2022), governs the export activities in Pakistan. Key points from the latest policies include:
General Provisions: All goods can be exported except those listed in Schedule I of the EPO-2022.
Export to Specific Countries: Export to India is limited to therapeutic products regulated by the Drug Regulatory Authority of Pakistan.
Special Provisions: Export of certain items such as equipment, samples, gift parcels, and relief goods are subject to specific circumstances.
Chemical Exports: Schedule I chemicals cannot be exported to states not party to the Chemical Weapons Convention, with specific conditions for Schedule II and III chemicals.
For detailed policies, refer to the Export Policy Order, 2022.
Tips for a Successful Application
Ensure Compliance: Follow all regulatory requirements and guidelines.
Prepare Thorough Documentation: Keep all necessary documents ready and updated.
Seek Professional Advice: Consult with legal and business advisors for smooth processing.
Potential Challenges and How to Overcome Them
Regulatory Compliance: Staying updated with changing regulations. Regularly check updates from the Ministry of Commerce and other relevant authorities.
Documentation: Ensuring all documents are accurate and complete. Maintain organized records and seek professional assistance if needed.
Market Understanding: Gaining insights into international markets. Conduct thorough market research and build a network of reliable contacts.
Conclusion
Obtaining an export license in Pakistan is a strategic move for businesses aiming to explore international markets. By understanding the eligibility criteria, following the step-by-step process, and staying compliant with the latest policies, you can successfully acquire your export license. Choose the right business entity, prepare thoroughly, and overcome challenges with informed strategies. Expand your business horizons and unlock new opportunities in the global market.
For more detailed information and personalized assistance, feel free to contact us. Let’s take your business to new heights together!