Understand the Jurisdictions Setup Requirement Before Proceed Your Pakistan Company Incorporation Services
Company registration is still the preferred business organization in Pakistan as it boosts any size of business enterprise. The company regulations and registrations are monitored by the Companies Ordinance Act of 1984.
The purpose of company administration is regulated by Pakistan’s Securities and Exchange Commission (SEC) and Registrar of Companies appointed by the SEC. It should be where the company should be registered.
You would have to follow the necessary procedure and requirements to register a company in Pakistan. There is more information in this article, so read on.
Securities and Exchange Commission of Pakistan (SECP)
The process of registration is managed by the SECP (Security and Exchange Commission of Pakistan). Therefore, if you want to register a company, you would have to visit the SECP website or go to their office. You can get all the important information about company registration from there.
Documents/Information You Will Need:
- Proposed company name (you can give up to 3)
- Scope and nature of your business.
- The full name and colour CNIC copies of the shareholders and directors.
- How much of the capital each member gave. The paid-up capital should not cost more than the license/authorized amount of capital.
- Address of your office.
- The residential addresses of the directors and shareholders (members)
- Cellphone and phone number of all members.
- The email address of all members.
- Incorporating a company using the regular method takes 5 to 7 working days, and the fast track takes 3 to 5 working days.
Limited Liability Company
Doing business in Pakistan is commonly done by registering a limited liability company. Even if the representative office can possibly be used if there are no intentions to do productive or commercial operations, registration of a branch is normally not needed.
The LLC in Pakistan can be registered with up to 2 directors only and two shareholders. The minimum capital required is $1,000. Even if the shareholders and directors do not have to be residents, they should each register for a tax number at the local tax authority.
Registering for Income and Sales Tax
To register for a National Tax Number (NTN), you must apply for it at the Regional Tax Office (RTO) under the Federal Board of Revenue (FBR).
The FBR is the one handling all matters related to tax in Pakistan. The documents needed for you to obtain an NTN are the following:
- NTN form
- Proof of registration
- Memorandum and Articles of Association
- Account number at the bank where you opened one for your business
- Copies of National IDs of the director(s)
- Business address evidence
You may also obtain an NTN by applying through the FBR website and apply for a sales tax number (STN). You can go to their office or official website.
Acquiring the Certificate of Incorporation and Company Seal
After you have to submit all documents, the SECP is going to evaluate them and check all your documents for validity. The National Institutional Facilitation Center (NIFT) will grant a company seal or digital signature. This can be acquired from the SECP.
The signature of company directors must receive a company seal. The SECP will give you a certificate of incorporation if you have valid documents. You will have it in physical form or electronic. Once you obtain the certification of incorporation, you can start.
Why Set Up a Business in Pakistan?
- Lifespan is unlimited – The main thing about a sole proprietorship is you have complete control of your entity. Your business will end if you die, but turning it into a company will give it an unlimited lifespan. The other members can continue the business.
- Tax benefit – This is most likely the main thing that convinces many people to set up a business in Pakistan. The rule says that company directors can receive a salary from the company. Hence, you can have lower net profits, so you do not have to pay high taxes.
- Reputation – When you register as a company in Pakistan, your business will have a higher level of respect. That is because people in Pakistan see it differently from just a sole proprietorship. You will attract more market if you register your company. These could be customers, investors, and shareholders who trust your company.
If you want to set up a business in Pakistan, contact 3E Accounting for anything you need assistance with (such as company set up). You will be talking to experts who can sincerely help you open your company in Pakistan, and they have other business services.