How a Trading Company Can Get Registered In Pakistan?

A trading Company Registration In Pakistan follows a standardized procedure governed by the Securities and Exchange Commission of Pakistan (SECP). The process is straightforward, provided the business owner fulfills all legal requirements and submits the required documentation. Below are the steps involved in registering a trading company in Pakistan.

1. Deciding the Company Structure

Before starting the registration process, the first step is to determine the type of company to establish. In most cases, trading companies are registered as Private Limited Companies (PLCs) due to the limited liability protection offered to shareholders. Other possible structures include sole proprietorship or partnership, but a private limited company provides a more professional corporate image and protects personal assets in case of business failure.

2. Name Reservation

The trading company's name will be chosen in the following step after the structure of the business has been established. The name must comply with SECP guidelines, meaning it should be unique, not offensive, and must not resemble any existing company name. The SECP has specific guidelines that prohibit the use of certain words, such as those related to government institutions or offensive terms. The business owner can submit up to three name suggestions through the SECP’s online e-services portal. Typically, approval takes one to two business days.

3. Preparation of Required Documents

The SECP requires several documents for company registration, including:

Memorandum of Association (MOA): This document outlines the objectives and scope of the trading business, such as importing, exporting, and distribution activities.

Articles of Association (AOA): The AOA outlines the rules and regulations governing the company’s internal management.

Form 1, Form 21, and Form 29: These forms provide necessary details about the company's directors, registered office address, and a declaration of compliance with the Companies Act.

Other documents that may be required include:

Copies of CNICs or passports of the company's directors and shareholders.

A copy of the company’s proposed address and its rent or ownership deed.

4. Filing for Incorporation

Once all documents are prepared, the next step is to submit them to SECP via its e-services portal or by physically visiting the Company Registration Office (CRO). Online submissions are generally faster and more efficient, with processing times typically ranging from 3 to 5 business days. The applicant must also pay the registration fee, which depends on the company’s authorized capital. For instance, if the authorized capital is PKR 100,000, the registration fee is around PKR 1,800.

5. Certificate of Incorporation

After the SECP has reviewed and approved the application, they issue a Certificate of Incorporation. This certificate confirms the company’s legal existence, allowing it to begin trading activities. The official date of incorporation and the company's unique identification number (UIN) are included in the certificate. The company is now legally recognized under the Companies Act, of 2017.

6. Post-Incorporation Tasks

After receiving the Certificate of Incorporation, the trading company must complete several post-registration formalities:

National Tax Number (NTN): Company Registration with the Federal Board of Revenue (FBR) is necessary to obtain an NTN for tax purposes.

Sales Tax Registration: If the company intends to deal with goods and services subject to sales tax, it must also register for sales tax with the FBR.

Import and Export Licenses: Since it is a trading company, it might require an import/export license from the relevant authorities, such as the Pakistan Customs or Ministry of Commerce.

7. Opening a Business Bank Account

Once the company is officially registered and has obtained its NTN, it can open a corporate bank account. Most banks in Pakistan require the Certificate of Incorporation, NTN, and copies of the MOA and AOA to open the account.

Conclusion

Registering a trading company in Pakistan is a structured process overseen by the SECP. The key steps include deciding the company structure, reserving a name, submitting the required documents, and receiving the Certificate of Incorporation. Once these formalities are completed, the trading company can begin its operations, provided it adheres to post-incorporation requirements like obtaining an NTN and import/export licenses. Following these steps carefully ensures the smooth legal setup of the company. Hamza & Hamza Law Associates is undoubtedly the best law firm in Lahore. I had never imagined anyone could manage my business issues, taxes, and property matters smoothly and timely.


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