How Can I Register a Company In Pakistan?

Company Registration In Pakistan is a streamlined process managed by the Securities and Exchange Commission of Pakistan (SECP). The introduction of the SECP’s e-Services portal has made it easier to register a business, offering online facilities for submission and tracking. Whether you are an entrepreneur starting a small business or an investor looking to establish a larger firm, understanding the steps involved can help ensure a smooth registration process. Here is a detailed guide on how to register a company in Pakistan.

Step 1: Choose a Company Structure

The first step in registering a company is deciding on the appropriate legal structure. The most common types of companies in Pakistan are:

Private Limited Company (Pvt. Ltd.): This is the most well-known structure for organizations in Pakistan. It limits the liability of its shareholders and requires at least two directors and shareholders.

Single Member Company (SMC): A private company with only one director and shareholder.

Public Limited Company: This type of company can offer shares to the public and requires a larger setup with more stringent regulatory requirements.

Sole Proprietorship: A business owned and run by one person with no distinction between the owner and the business entity.

Partnership: A business claimed by at least two people, where the accomplices share benefits, liabilities, and obligations.

The choice of structure affects the registration process, legal obligations, and taxation, so selecting the right one for your business model is crucial.

Step 2: Reserve a Company Name

The next step is to choose a unique name for your company and reserve it with the SECP. The name should not already be in use by another company, and it must comply with the naming guidelines provided by SECP. Names that are misleading, offensive, or identical to existing companies will be rejected.

You can check the availability of your desired company name through the SECP’s online portal. Once a unique name is selected, you need to reserve it by filling out the application on the SECP’s e-Services platform.

Step 3: Prepare the Incorporation Documents

Once the name is reserved, you must prepare the necessary incorporation documents. These include:

Memorandum of Association (MOA): This document outlines the company’s objectives, activities, and business scope. SECP provides basic templates for drafting the MOA.

Articles of Association (AOA): This document lays down the rules and regulations governing the company’s internal operations, such as management, decision-making processes, and shareholder rights. Like the MOA, SECP provides templates, but customization may be necessary depending on your business.

Additional documents include copies of the directors’ and shareholders’ CNICs (Computerized National Identity Cards) and, in the case of foreign investors, passport copies.

Step 4: Submit the Incorporation Documents

All incorporation documents must be submitted through SECP’s e-Services portal. You will need to create an account on the portal, fill out the relevant forms, and upload the required documents. Guarantee that all reports are precise and finished to keep away from deferrals or dismissals.

The SECP has introduced the concept of “One Window Facility” for companies, meaning that all necessary steps, from reserving the name to submitting incorporation documents, can be done through a single platform.

Step 5: Pay the Registration Fees

The fee structure for company registration varies based on the type and capital of the company. After submitting your incorporation documents, you will be prompted to pay the registration fees. This can be done electronically via the SECP portal, where options for bank transfers, credit cards, and other payment methods are provided.

Step 6: Obtain the Certificate of Incorporation

The SECP will issue the Certificate of Incorporation once they verify your documents and confirm payment. This certificate serves as legal proof that your company has been officially registered with the SECP. It also includes your company’s unique registration number, which is necessary for tax filings and other regulatory obligations.

Step 7: Register for Taxes and Other Obligations

After obtaining the Certificate of Incorporation, the next step is Company Registration In Lahore for tax purposes with the Federal Board of Revenue (FBR). You will need to apply for a National Tax Number (NTN) and, if applicable, sales tax registration.

Additionally, depending on the nature of your business, you may need to register with other authorities such as the Employees Old Age Benefits Institution (EOBI) or the provincial Social Security Institution.

Step 8: Open a Corporate Bank Account

Once your company is registered, you will need to open a corporate bank account in the company’s name. The Certificate of Incorporation, MOA, AOA, and the company’s NTN will be required by the bank to set up the account.

Conclusion

Enrolling an organization in Pakistan is a direct cycle that can generally be finished web-based through the SECP's e-Administrations gateway. By carefully following each step—from choosing the company structure to filing the incorporation documents and obtaining tax registration—Hamza & Hamza Law Associates  can establish their businesses legally and efficiently. Legal assistance is not mandatory but can be helpful for more complex setups.