Legal issues appear so complex that we are required to pay high fees to professionals whose businesses profit from the general public's ignorance of the law. Suppose you are an aspiring business person who wants to register a company in Pakistan. In that case, you can now apply for the procedure without a hassle by filling out an online application instead of submitting it by going physical.
All you have to do is:
- Go to SECP e-services web page.
- Sign up for SECP e-services.
- Reserve company name.
- Enter details in the form .
- Submit a challan .
- Provide relevant details .
- Pay a fee for company incorporation (PKR 1800).
Read to the end and Follow detailed guidelines provided in the article to know how to register a company in Pakistan.
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Types of Legal Companies You Can Register In Pakistan
According to the legal companies act (2017) an individual can legally register three types of companies in Pakistan. Before knowing how to register a company, you first know the three main types of companies in Pakistan.
- Single Limited Company
- Private Limited Company
- Public Limited Company
-
Single Limited Company
As the name defines its meaning on its own that a single-member company (SMC) is formed by an individual member. An SMC complies with the requirements laid out in the First Schedule, Part II, Section 4 of the Companies Act. These requirements include
- The company does not invite the public to subscribe to any shares in the company.
- They do not register any share(s) in the name of two or more persons to hold one or more shares together.
- The number of members of the company shall be limited to one.
- All foreign nationals, except for Israeli nationals, are also eligible to set up an SMC in Pakistan.
-
Private Limited Company
SECP regulations define when two or more persons associated with lawful purpose can form a Private Limited Company. They can subscribe names to the Memorandum of Association and comply with the requirements of the Companies Act, 2017.
The requirements for the registration of a private limited company in Pakistan:
- A company that restricts the right to transfer its shares.
- Limits the number of its members to fifty, not including persons who are in the employment of the company.
- Prohibits any invitation to the public to subscribe for the shares (if any) or debentures or redeemable capital of the company.
-
Public Limited Company
A public limited company has its shares offered to the general public. Those shares are with limited liability. The share may be offered to the public. Anyone can acquire the shares. It may be through a public offering or through trading in the stock market. There are two types of Public Limited companies, Listed and Unlisted.
| listed | Unlisted | |
|---|---|---|
| Allowed Foreign ownership | 100% | 100% |
| Minimum Capital | PKR 200 Million | PKR 100,000 |
| Listed In Stock Exchange | Yes | No |
| Minimum No of Shareholders | 7 | 3 |
| Time of incorporation | 6 weeks | 6 weeks |
Capital Required To Register A Company In Pakistan
| Type of Entity | Minimum No. of Shareholders | Minimum Capital Requirement | Standard Time of Incorporation |
|---|---|---|---|
| Private Limited Company | 2 | 1000 PKR | 6 weeks |
| Branch Office | No shareholders | N/A | 7 weeks |
| Public Listed Company (Unlisted) | 3 | 100,000 PKR | 6 weeks |
| Liaison Office/ | No shareholders | N/A | 7 weeks |
| Public Listed Company (Listed) | 3 | 200 Million | 6 weeks |
| Single Member Company | 1 | 100,000 PKR | 4 weeks |
Requirements Before Registeration
Make sure that following information is available before registration:
Requirements For An Individual
- CNIC
- Phone number
- E-mail address
- Nationality
- Residential address
- Accounting period
- Business name
- Business address
- Principal business activity
- Name and NTN (If salaried)
- Address of property (property income)
Requirements For Principal Officer OF Company And AOP
- Name of company
- Business name
- Business address
- Accounting period
- Business phone number
- E-mail address
- Cell phone number of principal officer
- Principal business activity
- Address
- Company type
- Date of registration
- Incorporation certificate (by SECP)
- Registration certificate
- Registration certificate in case of society
- Name of representative and CNIC
The Step-by-Step Guide to Company Registration in Pakistan
The procedure for registering a company in Pakistan is given below;
- Acceptance Of Company Name.
- Providing Documents.
- Declaration Of Incorporation.
- Shares Deposited.
- Registration Of Income, Sales, And Professional Taxes.
Step 1: Acceptance Of Company Name
Choosing a name for the company is the first stage in the registration of a company in Pakistan. It is crucial to come up with a distinctive company name that will set you apart from the competition in your sector.
You must abide by the limitations and rules of withholding tax . Make sure, for instance, that no offensive terms are present in the name of your company.
Step 2: Providing Documents
The second step in the procedure of registering a company is the submission of all required documents. You must submit the incorporation documentation to the Securities and Exchange Commission of Pakistan (SECP) once the company name has been approved.
Step 3: Declaration Of Incorporation
The SECP assesses the documents after they are submitted. They verify their legitimacy. The National Institutional Facilitation Technologies (NIFT) issues digital signatures, which can be obtained via the SECP.
The certificate of incorporation is also issued by them. There can be a requirement for a company presentation. However, where the business began will determine this.
Step 4: Shares Deposited
The fourth step in the registration process is the deposition of shares. Shareholders must deposit their corresponding number of shares to the company's bank account upon registration.
Step 5: Registration Of Income, Sales, And Professional Taxes
The last step in the registration process is the Registration of income, sales, and professional taxes. The Federal Board of Revenue (FBR) registration and issuing of a national tax number are the final steps in registering a company in Pakistan (NTN). If necessary, a sales tax registration number may be registered.
We hope the information provided is going to help you register your company with convenience. Know the sale tax rates in Pakistan as well and grow with your products.
