How To Register a Company in Pakistan
5/23/20242 min read
Many Pakistani businesses stay small, operating as sole proprietorships or partnerships. this can limit their growth, registering as a company offers several advantages, including:
Limited Liability: Your personal assets are protected if the company goes bankrupt. you only lose what you invested.
Easier Access to Capital: investors are more likely to fund a registered company with a proven track record.
Room for Growth: A registered company can expand into new markets and raise more capital.
This guide will explain the different types of companies you can register in Pakistan and the steps involved in the process.
Choosing the Right Company Structure
There are four main types of companies in Pakistan:
Single Member Company (SMC): Ideal for a single owner who wants the benefits of a corporation.
Private Limited Company (Pvt. Ltd): Requires at least two members and restricts share transfer.
Public Listed Company: Requires at least three members to raise capital by selling shares to the public.
Public Unlisted Company: Similar to a publicly listed company but doesn't sell shares publicly.
The Minimum Required Capital for SMC, Pvt and Public Unlisted Companies is Rupees One Hundred Thousand (Rs. 100,000/-) and for a Public Listed Company (PLC) is Rupees Two Hundred Million (Rs. 200 Million)
Steps to Registering Your Company
Choose a Business Structure: Consider your business model, number of founders and available funds.
Approve a Company Name: Check for availability and uniqueness through SECP's eZfile Portal.
Prepare Required Documents: These include ID copies of founders, office address, and company purpose documents.
Get a Certificate of Incorporation: Submit your application and documents to SECP for review and approval.
Open a Corporate Bank Account: Separate your business finances from your personal accounts.
Deposit Shares:
Each member/shareholder must deposit their share capital into the company's bank account.National Taxation Number: Register with the Federal Board of Revenue for tax purposes.
Obtain Sales Tax Registration: Register for sales tax, if your business sells taxable goods.
Conclusion
Registering your company in Pakistan can be straightforward with the help of SECP's online services. This guide provides a general overview, but it's advisable to consult a legal advisor for the latest information and specific requirements.