How Much Does It Cost to Register a Company In Pakistan?

 The cost of Company Registration in Pakistan depends on several factors, including the type of company being incorporated, the company’s authorized capital, and the services used during the process. In Pakistan, the Securities and Exchange Commission of Pakistan (SECP) is the primary regulatory body that oversees company registration, and it offers a streamlined process through its eServices portal. This article provides a breakdown of the costs involved in registering a company in Pakistan, especially focusing on private limited companies, which are the most common type of business structure.

1. SECP Filing Fee

The first significant cost involved in registering a company is the filing fee charged by the SECP. The expense structure depends on the organization's approved capital. The higher the capital, the higher the fees. Here’s a general breakdown of the SECP fee structure:

For approved capital up to PKR 100,000: The recording charge is somewhat insignificant, regularly around PKR 1,800 for online accommodation and PKR 3,500 for actual accommodation of archives.

For authorized capital above PKR 100,000 and up to PKR 500,000: The filing fee increases to around PKR 2,200 for online submission and PKR 5,500 for physical submission.

For authorized capital above PKR 500,000 and up to PKR 1 million: The filing fee is PKR 2,500 for online submission and PKR 7,000 for physical submission.

As the approved capital builds, the charges keep on rising. However, most small businesses with moderate capital fall within the lower fee categories.

2. Name Reservation Fee

When registering a company, you first need to reserve a unique company name through the SECP’s eServices portal. The cost for a name reservation is PKR 200 if done online. If you submit the documents in person (physical submission), the fee is higher, around PKR 500.

3. Memorandum and Articles of Association Drafting Fee

The Memorandum of Association (MoA) and Articles of Association (AoA) are vital documents required for company incorporation. These documents outline the company’s objectives and the rules for managing the company.

If you draft these documents yourself, the cost is zero. However, due to the legal and technical nature of these documents, many people choose to hire a professional such as a lawyer or consultant to prepare them.

Hiring a lawyer or consultant can cost anywhere from PKR 5,000 to PKR 50,000, depending on the complexity of the business and the reputation of the professional.

4. Consultancy or Legal Fees

Many businesses hire professional services for the registration process, especially first-time entrepreneurs who are unfamiliar with the legal procedures. If you engage a consultant or lawyer to handle the entire registration process, the cost can range from PKR 10,000 to PKR 50,000 or more, depending on the professional’s expertise and the scope of services provided.

Some legal firms offer packages that include name reservation, document drafting, and SECP filing, which can streamline the process for business owners who prefer not to handle it themselves.

5. Paid-Up Capital

For organization enlistment in Pakistan, there is no base prerequisite for settled-up capital for private restricted organizations. However, the company must deposit a certain amount into its corporate bank account to meet the declared capital amount. There are no specific costs associated with paid-up capital in the Company Registration In Pakistan process, but the company’s capital will dictate future financial commitments.

6. National Tax Number (NTN) Registration Fee

In the wake of enlisting an organization with the SECP, you should likewise get a Public Duty Number (NTN) from the Government's Leading body of Income (FBR). While there is no fee for obtaining an NTN directly from the FBR, many businesses hire consultants for this service. The typical range of consultant fees for NTN registration is PKR 2,000 to PKR 10,000.

7. Chamber of Commerce Registration

If you plan to engage in import or export activities, registering with a local Chamber of Commerce is necessary. The fee for registration with a Chamber of Commerce can vary depending on the chamber you choose (e.g., Karachi Chamber of Commerce and Industry or Lahore Chamber of Commerce). The typical annual fee ranges from PKR 5,000 to PKR 15,000.

8. Miscellaneous Expenses

Other miscellaneous expenses might include notary fees, attestation charges, or courier services if physical documents are being submitted. These costs are usually minimal but can add up, ranging from PKR 500 to PKR 2,000.

Conclusion

The total cost of registering a company in Pakistan depends on factors such as the company's authorized capital, professional services used, and additional legal or consultancy fees. On average, for a small to medium-sized private limited company, the cost of registration can range from PKR 10,000 to PKR 50,000, depending on the complexity of the process and the professional fees involved. By understanding these costs, Hamza & Hamza Law Associates can better plan their budget for setting up a business in Pakistan.