What Are The Basic Requirements To Register a Company in Pakistan?

Company Registration In Pakistan is a straightforward process governed by the Securities and Exchange Commission of Pakistan (SECP). It ensures businesses operate legally, enjoy tax benefits, and gain credibility. Understanding the requirements is critical to streamlining the registration process. Below is a comprehensive guide to the basic requirements for registering a company in Pakistan.

1. Type of Company

The first step is deciding the type of company to register. Common types include:

The best option for small and medium-sized enterprises is a private limited company. Requires at least two shareholders and a maximum of 50.

Single Member Company (SMC): Suitable for solo entrepreneurs. Requires one director/shareholder.

Public Limited Company: Can invite public investment and requires at least three directors.

Partnership or Sole Proprietorship: Registered differently and falls under other regulatory frameworks.

2. Business Name Reservation

A unique business name is required to avoid conflicts with existing companies. The name must align with SECP’s guidelines, avoiding prohibited or misleading terms. Businesses can reserve a name online through the SECP portal. Once approved, it is reserved for 60 days.

3. Documentation Requirements

The following documents are necessary for registration:

The company's goals and range of operations are outlined in the Memorandum of Association (MOA).

Operating rules and regulations are outlined in the Articles of Association (AOA).

Copies of the directors' and shareholders' passports and CNICs serve as identification.

Forms 1, 21, and 29: These forms relate to the declaration of compliance, registered office address, and particulars of directors and other officials.

For foreign shareholders or directors, a notarized copy of their passport and proof of residence is required.

4. Registered Office Address

A registered physical address in Pakistan is mandatory. This will serve as the official correspondence address for SECP and other authorities.

5. Capital Requirement

While there is no minimum capital requirement for most companies, the declared share capital determines registration fees. For example, for private limited companies, the fee increases with higher authorized capital.

6. National Tax Number (NTN)

After incorporation, obtaining an NTN from the Federal Board of Revenue (FBR) is essential for taxation purposes. The Company Registration In Lahore is necessary for sales tax if applicable.

7. Bank Account

Opening a corporate bank account is required to deposit the share capital. Banks may require a company incorporation certificate and other supporting documents.

8. Digital Signature

SECP requires a digital signature for online filings. This can be obtained through the National Institutional Facilitation Technologies (NIFT).

9. SECP Registration Portal

SECP’s e-Services portal facilitates the entire registration process. Applicants create an account, submit required documents, and pay fees online.

10. Payment of Fees

The type and size of the company determine the registration fee.

Payments can be made online or through designated bank branches.

11. Post-Incorporation Requirements

Once registered, companies must comply with certain obligations, including:

Filing annual returns.

Maintaining updated records of directors and shareholders.

Adhering to corporate governance rules.

Final Thoughts

Conclusion

Registering a company in Pakistan requires careful planning and adherence to regulatory guidelines. SECP has simplified the process through digital platforms, reducing bureaucratic hurdles. By meeting these basic requirements, Hamza & Hamza Law Associates can establish a legal entity, paving the way for growth and success.

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