How Can Expatriates Register a Company In Pakistan?

 Pakistan is becoming an attractive destination for foreign investors and expatriates looking to establish businesses. The country offers various incentives, such as 100% foreign ownership in most sectors, tax exemptions, and simplified registration processes. The Securities and Exchange Commission of Pakistan (SECP) oversees company registration, and expatriates must comply with both federal and provincial regulations.

This guide outlines the step-by-step process for expatriates to Company Registration In Pakistan, the required documents, and legal considerations.

1. Choosing the Right Business Structure

Before initiating the registration process, expatriates must decide on the most suitable business structure. The three most common options include:

  • Private Limited Company (Pvt Ltd) – Ideal for foreign investors, as it allows limited liability protection and 100% foreign ownership.
  • Single Member Company (SMC) – Suitable for solo entrepreneurs who want full control while maintaining limited liability.
  • Branch or Liaison Office – If an expatriate represents a foreign company, they can register a branch or liaison office instead of incorporating a new entity. This requires approval from the Board of Investment (BOI).

Most expatriates opt for a Private Limited Company due to its flexibility and lower regulatory burden.

2. Registering the Company with SECP

Step 1: Name Reservation

  • Expatriates must apply for name reservations through the SECP e-Services portal.
  • The chosen name should not be identical or similar to an existing business.
  • SECP issues a Name Reservation Certificate within 1-2 working days.

Step 2: Preparation of Incorporation Documents

The following documents must be submitted online via SECP’s e-Services portal:

  • Memorandum of Association (MoA) – Defines the company’s objectives and business activities.
  • Articles of Association (AoA) – Governs the internal management and operational rules.
  • Copies of Passports and CNICs – Foreign directors and shareholders must submit scanned copies of their passports.
  • Form 29 – Contains details of the company’s directors and CEO.
  • Form 21 – Specifies the company’s registered office address in Pakistan.
Company Registration In Pakistan


Step 3: Payment of Registration Fee

  • The incorporation fee depends on the company’s authorized capital.
  • Payments can be made online or at designated bank branches.

Step 4: Certificate of Incorporation

  • Once SECP verifies the documents, it issues the Certificate of Incorporation, confirming the company’s legal existence.

3. Obtaining a National Tax Number (NTN)

After Company Registration In Lahore, expatriates must register with the Federal Board of Revenue (FBR) to obtain an NTN (National Tax Number). This is essential for:

  • Filing taxes
  • Opening a corporate bank account
  • Conducting business transactions

Registration is done through FBR’s IRIS portal by submitting:

  • The SECP Certificate of Incorporation
  • The company’s bank account details
  • The director’s passport copy

4. Foreign Investment and Repatriation of Profits

Expatriates can own 100% shares in most sectors without requiring a local partner. However, certain restricted industries, such as media, require local equity participation.

Opening a Corporate Bank Account

  • The company must open a corporate bank account in a Pakistani bank.
  • Initial paid-up capital must be deposited in this account.

Foreign Exchange Regulations

  • Foreign investors can remit capital, dividends, and profits outside Pakistan.
  • The State Bank of Pakistan (SBP) regulates foreign exchange transactions, ensuring that foreign investors can easily repatriate their earnings.
Company Registration In Pakistan


5. Industry-Specific Approvals and Provincial Requirements

Certain industries require additional approvals from provincial or federal regulators. For example:

  • Real estate companies need approval from the Lahore Development Authority (LDA) or the Sindh Building Control Authority (SBCA).
  • Financial services companies must be registered with the State Bank of Pakistan (SBP) or the SECP.
  • Manufacturing businesses require approvals from Environmental Protection Agencies (EPA) in their respective provinces.

Additionally, Company Registration In Lahore for sales tax with the respective provincial revenue authorities, such as:

  • Sindh Revenue Board (SRB)
  • Punjab Revenue Authority (PRA)
  • KP Revenue Authority (KPRA)
  • Balochistan Revenue Authority (BRA)

6. Compliance and Annual Filings

Expatriate-owned companies must fulfill annual compliance requirements to avoid legal issues. These include:

  • Annual Returns Filing – Companies must submit annual returns to SECP, detailing shareholders, directors, and financial statements.
  • Tax Returns – Companies must file annual income tax and sales tax returns with FBR and relevant provincial tax authorities.
  • Audit Reports – If the company exceeds a certain revenue threshold, it must submit audited financial statements.

Non-compliance with these requirements can result in penalties or company deregistration.

7. Benefits for Expatriates Registering a Company in Pakistan

Pakistan offers several benefits to expatriate entrepreneurs, including:

  • 100% foreign ownership in most industries
  • No minimum capital requirement for company incorporation
  • Repatriation of profits and dividends through the State Bank of Pakistan
  • Access to Special Economic Zones (SEZs), which offer tax holidays, customs duty exemptions, and subsidized utilities
  • No nationality restrictions on becoming a company director or shareholder

Additionally, Pakistan’s growing digital economy and strategic location make it a lucrative market for IT startups, e-commerce businesses, and service-based enterprises.

Conclusion

Expatriates can easily register a company in Pakistan with the help of Hamza & Hamza Law Associates by following SECP’s online registration process and complying with FBR’s tax regulations. The ability to own 100% shares repatriate profits, and access investment incentives makes Pakistan a favorable destination for foreign entrepreneurs.

However, it is crucial to ensure compliance with tax laws, industry-specific approvals, and annual filings to operate smoothly. Consulting with a business lawyer or financial expert can further simplify the process for expatriates looking to establish a successful business in Pakistan.

Comments

Post a Comment

Popular posts from this blog

What Are the Penalties for Non-Compliance After Company Registration in Pakistan?

Image
 After Company Registration In Pakistan , businesses need to comply with various legal, tax, and regulatory obligations as prescribed by the Securities and Exchange Commission of Pakistan (SECP), the Federal Board of Revenue (FBR), and other relevant authorities. Failure to comply with these requirements can result in severe penalties, fines, and even legal action. Understanding the penalties associated with non-compliance is crucial for business owners to avoid financial and reputational damage. Below is a comprehensive guide to the penalties for non-compliance after company registration in Pakistan. 1. Penalties for Late Filing of Annual Returns One of the most common non-compliance issues faced by businesses in Pakistan is the failure to file the annual return with the SECP. Under the Companies Act, 2017, all companies are required to file their annual return and financial statements within a specific time frame. Deadline : Annual returns must be filed within 30 days of the co...
Read more

How To Comply With Social Security Obligations After Company Registration In Pakistan?

Image
Company Registration In Pakistan , it must comply with various labor laws and social security regulations to protect the rights of its employees. Social security obligations ensure that workers receive benefits such as medical coverage, pension, and injury compensation . Compliance with these regulations is mandatory for businesses under the Employees’ Old-Age Benefits Institution (EOBI) Act and the Provincial Employees Social Security Ordinances . This article outlines the key social security obligations that businesses must fulfill after company registration in Pakistan. 1. Registering with the Employees’ Old-Age Benefits Institution (EOBI) What is EOBI? The Employees’ Old-Age Benefits Institution (EOBI) is a federal body that provides pensions and retirement benefits to employees in registered companies. Steps to Register with EOBI Obtain EOBI Registration After company registration with SECP (Securities and Exchange Commission of Pakistan) or as a sole proprietorship, the comp...
Read more

What Are The Benefits, Pros And Cons Of Registering Your Company or Business In Pakistan?

Image
Company Registration In Pakistan offers numerous advantages for entrepreneurs, but it also comes with its own set of challenges. The decision to formalize a business entity can significantly impact its growth, credibility, and legal standing. Here's a look at the key benefits, pros, and cons of registering a company in Pakistan. Benefits of Registering a Company in Pakistan Legal Protection and Limited Liability One of the primary benefits of registering a company in Pakistan is the limited liability protection it offers. In a private limited company, the personal assets of the owners or shareholders are protected from business liabilities. This means that if the company faces financial difficulties or legal claims, the personal assets of the shareholders remain secure. Increased Credibility and Trust Enlisting an organization improves its validity according to clients, accomplices, and financial backers. A formal business structure, such as a private limited company or public lim...
Read more