Can a Pakistani Resident Register a Company On Behalf Of a Foreigner?

 Yes, a Pakistani resident can register a company on behalf of a foreigner in Pakistan, subject to certain legal, regulatory, and procedural conditions. While the law allows foreign ownership of companies in most sectors, foreign nationals often appoint local residents—such as business partners, legal representatives, or consultants—to handle the Company Registration In Pakistan process due to logistical or legal convenience.

Legal Framework for Foreign Participation

The registration of companies in Pakistan is governed by the Companies Act, 2017, and regulated by the Securities and Exchange Commission of Pakistan (SECP). Under Pakistani law, foreign individuals or entities can own shares in a company, whether it is a private limited, public limited, or single-member company (with some restrictions for the latter).

Foreigners are permitted to be directors or shareholders, and in some sectors, they can even own 100% equity. However, certain regulated sectors—such as media, arms, and agriculture—may have restrictions or require prior approvals from relevant authorities.

Role of a Pakistani Resident in the Registration Process

A Pakistani resident can play various roles when assisting a foreigner in registering a company, including:

  • Acting as an authorized representative or agent to handle documentation.

  • Serving as a nominee director or shareholder (though this must be done with caution and transparency).

Company Registration In Pakistan

  • Assisting with regulatory filings with the SECP, FBR (Federal Board of Revenue), State Bank of Pakistan (SBP), and other bodies.

This is particularly useful when the foreigner is not physically present in Pakistan during the registration process.

Key Steps in the Registration Process

Here is a breakdown of how a Pakistani resident can assist in Company Registration In Pakistan on behalf of a foreigner:

1. Name Reservation

The Pakistani representative can apply online through SECP’s eServices portal to reserve the desired company name.

2. Drafting Incorporation Documents

This includes:

  • Memorandum and Articles of Association

  • Form 1 (Declaration of compliance)

  • Form 21 (Address of the registered office)

  • Form 29 (Details of directors and officers)

If the foreigner is to be listed as a director or shareholder, their passport copy, address, and other personal details are required.

3. Obtaining Digital Signatures

Pakistani residents can assist in obtaining digital signature certificates through NIFT, which are needed to file incorporation forms electronically.

4. Filing with SECP

The representative can submit the application and documents online via the eServices portal. Once approved, the SECP issues a Certificate of Incorporation.

5. Registering with FBR

The company must be registered with the Federal Board of Revenue to obtain an NTN (National Tax Number). The Pakistani resident can file this on the foreigner’s behalf, using authorization letters.

6. Opening a Bank Account

To bring in foreign investment, a company must open a business bank account in a Pakistani bank. The foreign shareholder will need to send funds through proper banking channels in compliance with State Bank of Pakistan (SBP) rules.

Authorization and Power of Attorney

To act on behalf of a foreign national, the Pakistani resident often needs a Power of Attorney (PoA), duly notarized and, if issued abroad, attested by the Pakistani embassy/consulate in the foreigner’s country. This document authorizes the Pakistani resident to sign documents and represent the foreigner during the registration process.

Company Registration In Pakistan

Considerations and Compliance

  • Disclosure: Any nominee arrangements must be fully disclosed to SECP to avoid legal complications.

  • Taxation: Foreign shareholders may be subject to withholding taxes or reporting requirements.

  • Banking Compliance: The foreign capital injection must comply with SBP’s foreign exchange regulations.

Conclusion

A Pakistani resident can legally and effectively register a company on behalf of a foreigner, acting as a representative, agent, or business facilitator by Hamza & Hamza Law Associates. While the process is relatively straightforward, it must be conducted transparently and in accordance with SECP, FBR, and SBP regulations. With proper documentation and legal authorization, foreign investors can successfully establish a business presence in Pakistan through the support of local partners or professionals.

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