How Do I Register a Company In Pakistan’s Special Economic Zones (SEZs)?

 Pakistan’s Special Economic Zones (SEZs) offer unique opportunities for investors by providing tax incentives, streamlined processes, and infrastructure tailored to industrial growth. SEZs have become a focal point of the country’s economic strategy, attracting both local and foreign investment. Company Registration In Pakistan within an SEZ follows a structured process governed by the Special Economic Zones Act, 2012, and related regulations. This guide outlines the steps to register a company in Pakistan’s SEZs.

1. Understand the Benefits of SEZs

Before registering, it’s important to understand the advantages SEZs provide:

  • Tax Exemptions: SEZ enterprises are exempt from income tax for 10 years starting from their production date.
  • Custom Duty Waivers: Import duties on machinery, equipment, and materials are waived.
  • Infrastructure Support: SEZs offer developed plots, reliable utilities, and connectivity to facilitate industrial operations.
  • One-Window Operations: Simplified procedures for business setup and regulatory compliance.

These benefits make SEZs an attractive option for industries like manufacturing, technology, and logistics.

2. Select an SEZ

Pakistan has several SEZs located across the country, including:

  • Rashakai SEZ (Khyber Pakhtunkhwa)
  • Dhabeji SEZ (Sindh)
  • Allama Iqbal Industrial City (Punjab)
  • Bostan SEZ (Balochistan)

Research the specific SEZ that aligns with your business goals and industry focus. Each SEZ may have different requirements, industries of focus, and infrastructure capabilities.

3. Choose a Business Structure

Select the legal structure for your company, which may include:

  • Private Limited Company (Pvt Ltd): Ideal for limited liability and scalability.
  • Public Limited Company: Suitable for large-scale projects requiring significant public investment.
  • Partnership: A simpler structure for smaller ventures but lacks limited liability.

For SEZs, a Private Limited Company is often the most practical choice due to its flexibility and limited liability protection.

Company Registration In Pakistan

4. Reserve a Company Name

Register a unique name for your company with the Securities and Exchange Commission of Pakistan (SECP). The name must comply with SECP’s guidelines and avoid prohibited or misleading terms. Use SECP’s e-Services portal to submit the name reservation application. Once approved, the name is reserved for 90 days.

5. Draft Incorporation Documents

Prepare the necessary documents for Company Registration In Lahore, including:

  • Memorandum of Association (MoA): Define the company’s objectives, specifying its focus within the SEZ.
  • Articles of Association (AoA): Outline the governance structure and operational rules.
  • Director and Shareholder Details: Provide CNICs (or passports for foreign nationals) of directors and shareholders.
  • Digital Signatures: Obtain digital signatures through NIFT for online submissions.

6. Incorporate the Company

File an incorporation application with SECP via its e-Services portal. Attach the following:

  • Approved company name.
  • Scanned copies of MoA and AoA.
  • Details of directors and shareholders.
  • Proof of incorporation fee payment.

Once the application is processed, SECP issues a Certificate of Incorporation within 5–7 working days.

7. Obtain SEZ Enterprise Status

After incorporation, apply for SEZ enterprise status from the Board of Investment (BOI) and the relevant SEZ authority. The application must include:

  • Business plan, detailing the project, its objectives, and its alignment with SEZ policies.
  • Feasibility study, demonstrating the financial viability of the project.
  • Certificate of Incorporation and company documents.

The SEZ authority reviews the application and, if approved, grants SEZ enterprise status.

8. Acquire a Plot in the SEZ

Once SEZ enterprise status is approved, apply for a plot within the chosen SEZ. The process involves:

  • Submitting an application to the SEZ authority.
  • Negotiating lease terms and payment of fees.
  • Signing a lease agreement for the industrial plot.

Some SEZs also provide pre-built facilities for businesses to start operations quickly.

9. Register with FBR and Other Authorities

Register your company with the Federal Board of Revenue (FBR) to obtain:

  • National Tax Number (NTN): Required for tax filing.
  • Sales Tax Registration: Necessary if your business deals in taxable goods or services.

Additionally, comply with labor and environmental laws by registering with the relevant authorities, such as the Employees’ Old-Age Benefits Institution (EOBI) and the Environmental Protection Agency (EPA).

10. Install Equipment and Begin Operations

Once registered, import any required machinery and raw materials. Take advantage of duty-free import benefits provided to SEZ enterprises. Ensure that the setup complies with the operational guidelines of the SEZ.

11. Maintain Compliance with SEZ Regulations

Registered SEZ enterprises must adhere to ongoing compliance requirements, including:

  • Submitting annual financial statements to SECP and SEZ authorities.
  • Ensuring timely tax filings.
  • Maintaining accurate employment and operational records.

Failure to comply can result in penalties or revocation of SEZ enterprise status.

Company Registration In Pakistan

Conclusion

Registering a company in Pakistan’s Special Economic Zones involves multiple steps, including incorporation with SECP, obtaining SEZ enterprise status, and acquiring a plot within the SEZ. The process is streamlined through one-window operations, ensuring minimal bureaucratic hurdles. By following this structured approach and leveraging the incentives provided by SEZs, businesses can achieve cost-effective operations and contribute to Pakistan’s industrial growth. Engaging a legal or business consultant like Hamza & Hamza Law Associates can further simplify the process, ensuring compliance and smooth registration.

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