How Can I Register a Small Company From Pakistan In The Pakistan?

 Thanks to the Securities and Exchange Commission of Pakistan (SECP)'s efforts to digitize and simplify business registration, registering a small company in Pakistan is streamlined and relatively simple. Whether you're starting a sole proprietorship, a partnership, or a private limited company, the process can largely be handled online, making it convenient for new entrepreneurs. Here's a step-by-step guide on how to Small Company Registration in Pakistan:

1. Choose the Business Structure

Identifying your company's legal structure is the first step. The most common business structures for small businesses in Pakistan are:

Limited Liability Company: The simplest type of business, in which the owner bears all financial responsibility.

Partnership: a company in which two or more partners share liability and responsibility.

Private Limited Company (Pvt Ltd): This is the most popular option for small businesses due to its limited liability feature, which protects the owners from personal financial risk.

For small businesses, a sole proprietorship or private limited company is generally the best choice, depending on whether you want liability protection. Many small businesses opt for a private limited company to limit personal liability and enjoy more credibility in the market.

2. Reserve a Company Name

Once you’ve decided on the business structure, you will need to choose and reserve a name for your company. This can be done through SECP’s online portal.

The company name must not be already taken by another registered business and must comply with the rules regarding prohibited or sensitive words. You can check name availability on SECP’s website. You will have plenty of time to finish the registration process because the name reservation is valid for 60 days.

3. Create the Bylaws and Memorandum of Association.

If you are registering a private limited company, you will need to draft the Memorandum of Association (MoA) and Articles of Association (AoA). The purpose of your company and its internal governance are outlined in these essential legal documents.

The Memorandum of Association defines the scope of your business activities and the company’s objectives. The Articles of Association outline the rules governing the management and operations of the company, such as how directors are appointed and the rights of shareholders. SECP provides model templates for both the MoA and AoA, which can be customized to fit your specific business.

4. Register Your Company with SECP

To officially register your company, you will need to file an application with the SECP. This process is primarily conducted online through SECP’s e-services portal, making it easy to handle from anywhere in Pakistan.

To register a Private Limited Company, you will need to submit:

Memorandum of Association (MoA)

Articles of Association (AoA)

Copies of the CNICs of directors and subscribers

Proof of payment of registration fee (based on your company's authorized capital)

Details of the company's registered office address

Once your documents are submitted, SECP will review them, and if everything is in order, they will issue a Certificate of Incorporation. This certificate is proof that your company is legally registered in Pakistan.

5. Obtain a National Tax Number (NTN)

After registering your company with SECP, the next step is to obtain a National Tax Number (NTN) from the Federal Board of Revenue (FBR). The NTN is necessary for your company to fulfill its tax obligations.

The Iris portal of the FBR is where you can apply for the NTN online. The name of the company, the names of the directors, and the address of the registered office are all necessities for the application.

6. Open a Corporate Bank Account

Once your Company Registration In Pakistan is done and you have obtained your NTN, you can open a corporate bank account in the name of your company. Most banks in Pakistan will require:

Certificate of Incorporation

NTN certificate

Memorandum and Articles of Association

CNICs of the directors and authorized signatories

This bank account will be used to handle the company’s finances, and it’s important to keep business transactions separate from personal ones for clarity and tax purposes.

7. Register for Sales Tax (If Applicable)

If your small company plans to sell goods or services that are subject to sales tax, you will need to register for sales tax with the FBR. This can also be done online via the FBR’s portal.

Sales tax registration is mandatory if your business exceeds a certain threshold in revenue, typically around Rs. 10 million annually.

8. Comply with Ongoing Requirements

Once your company is registered, there are ongoing compliance requirements, such as filing annual returns with SECP and tax returns with the FBR. As a small business owner, it’s essential to stay compliant with these regulations to avoid penalties.

Conclusion

Registering a small company in Pakistan is a structured yet simple process, especially with the digital resources provided by SECP and FBR. By choosing the right business structure, reserving a company name, filing the necessary documents with SECP, obtaining an NTN, and maintaining compliance with tax regulations, Hamza & Hamza Law Associates can smoothly register and operate your business in Pakistan.