What Licenses Are Required After Company Registration In Pakistan?
Company Registration In Pakistan through the Securities and Exchange Commission of Pakistan (SECP) is only the first step toward legally operating a business. Once registration is complete, companies must obtain a variety of licenses and approvals depending on the nature of their business, industry, and location. These licenses ensure compliance with federal, provincial, and local laws and allow the company to conduct its operations legally.
This article provides a comprehensive overview of the licenses and registrations required after company formation in Pakistan.
1. National Tax Number (NTN) Registration
After incorporation, the company must obtain a National Tax Number (NTN) from the Federal Board of Revenue (FBR). This is mandatory for all companies, as it allows them to:
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File income tax returns
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Open a corporate bank account
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Conduct business with other tax-compliant entities
NTN registration can be done online via the FBR’s IRIS portal, and it is usually processed within a few days.
2. Sales Tax Registration (if applicable)
Companies involved in manufacturing, trading, or providing taxable services must register for sales tax. This registration is also done through FBR and is essential for:
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Charging and collecting sales tax from customers
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Claiming input tax adjustments
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Filing monthly sales tax returns
Without sales tax registration, companies may not be able to do business with large clients, especially those in the formal sector.
3. Professional Tax Registration
Each Company Registration in Lahore is required to register for professional tax with the Excise and Taxation Department of the relevant province. This tax is levied on businesses and salaried professionals and is payable annually.
Professional tax registration is especially important when applying for other local government permits or trade licenses.
4. Chamber of Commerce Membership
While not mandatory for all companies, joining a Chamber of Commerce and Industry can be beneficial. Many sectors require membership as a precondition for:
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Participating in trade exhibitions
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Import/export licensing
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Getting certain government incentives
Examples include the Lahore Chamber of Commerce & Industry (LCCI) and the Karachi Chamber of Commerce & Industry (KCCI).
5. Trade License / Business Location Permit
To operate a physical office, retail outlet, warehouse, or factory, companies must obtain a trade license or municipal permit from the local Metropolitan Corporation or Development Authority. This verifies that the business is allowed to operate in a specific zone or area.
In major cities like Karachi, Lahore, and Islamabad, trade licenses are issued by the respective local authorities such as CDA, LDA, or KMC.
6. Industry-Specific Licenses
Depending on the nature of the business, some sectors require additional licenses or approvals:
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Health or food businesses need licenses from the Punjab Food Authority (PFA) or the Sindh Food Authority (SFA).
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Educational institutions must get approval from education departments and local authorities.
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Construction companies may need registration with the PEC (Pakistan Engineering Council).
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Import/export businesses must register with Pakistan Customs and obtain a WeBOC ID.
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IT and telecom companies may need licenses from the PTA (Pakistan Telecommunication Authority).
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Pharmaceutical and health-related companies need to be registered with the DRAP (Drug Regulatory Authority of Pakistan).
7. Environmental Approvals
For businesses likely to affect the environment (factories, manufacturing units, etc.), it is mandatory to obtain a No Objection Certificate (NOC) from the relevant Environmental Protection Agency (EPA) before starting operations.
8. Labor and Social Security Registration
Companies with employees must register with:
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Employees’ Old-Age Benefits Institution (EOBI)
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Social Security Institutions (like Punjab or Sindh Social Security)
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Workers Welfare Fund (WWF) and Workers Profit Participation Fund (WPPF)
These registrations ensure compliance with labor laws and allow employees to access medical, pension, and other welfare benefits.
Conclusion
After registering a company in Pakistan, obtaining the right licenses is essential to operating legally and avoiding penalties. While the exact requirements vary based on business type and location, every company must at least get an NTN, professional tax registration like Hamza & Hamza Law Associates, and trade license. Industry-specific permits and regulatory compliance are equally important to ensure smooth operations and credibility in the market. Early compliance not only reduces risk but also opens the door to government incentives and corporate partnerships.
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