Registration of Companies in Pakistan

Incorporating a company in Pakistan

The Securities and Exchange Commission of Pakistan (SECP) is the legal entity that handles company registration in Pakistan. The registration process with SECP can be completed by anyone.

Registration of companies in Pakistan

In Pakistan, company registration consists of the following steps:

  • All applicants must first obtain the Commission’s approval for their proposed company names. Applicants must fill out and submit the application form, either online or by hand.
  • Once those are in place, you will need to submit your articles of association and memorandum of association. Information about the shareholding percentages of each stakeholder should be included in MOA & AOA.
  • As a company, this document will need to be reviewed by a lawyer before it can be filed with SECP for registration. Limited Liability Partnerships and Public Limited Liability Companies are the two options.

Pakistani company registration follows the following procedure.

Registration of a company in Pakistan involves the following steps:

  • Getting your company’s name approved by SECP is the first step. SECP can help you with this by letting you know if a particular name is available. Online or manually, you will need to submit a copy of your company registration application along with the fee in order to receive this certificate.
  • Registration with SECP (Securities and Exchange Commission of Pakistan) is next on our list. Registration with SECP (Securities and Exchange Commission of Pakistan) is next on our list. To complete this process, they need to fill out a form and pay fees online or through various banks available across Pakistan. Luckily, all major Pakistani banks accept debit/credit cards now, so getting some cash before visiting should not be too difficult.
  • Last but not least, applying for a certificate of incorporation allows us to legally register ourselves as companies rather than sole proprietorships or individual traders.

The Commission must first approve the names of all interested applicants

Applicants must first obtain approval from the Commission for their proposed company names. It is important for the applicant to select their company’s name carefully as it will be registered under this name or its abbreviations or variations. No matter how new or existing the name is, it will be thoroughly scrutinized. Prior to giving you the OK on incorporation, the agency will look into every aspect of your proposed business name:

  • Names should not be identical to those of other entities registered in Pakistan;
  • There should be no offensive content in it;
  • As far as its nature, location, and operations are concerned, it should not mislead consumers;
  • A full name such as “Limited Liability Partnership Company (LLP)” can contain abbreviations (such as Ltd., Co., etc.).
Registering with SECP as a company there are three options, i.e. Proprietorship, Partnership and Limited Liability Company (Private or Public).
  • Proprietorship. If you are a proprietor, then it is best to register your company with SECP (Securities and Exchange Commission of Pakistan). Since there are no legal formalities involved in this option, it is considered to be very easy. Simply fill out their online form and submit it along with the required documents, and it will be registered within 24 hours. Because this option allows only one owner/partner at a time, it is not suitable for those who wish to create an organization with multiple owners/partners, whereas the other two options mentioned below allow for multiple shareholders/members.
  • For starting a partnership business in Pakistan, two or more partners may form a partnership under the Partnership Act, of 1932. In order to register a partnership firm, a Partnership Agreement must be executed. Among others, the terms and conditions of Partnership include, among others; terms, scope, object; shares of the respective partners; mode and time for sharing profits etc. In the same way as any other agreement, partners expressly limit their rights and obligations against one another in writing.
  • Company status refers to a business that is independent of its owners. At the end of the name, the words “Private Limited” or “Public Limited” are added. Other countries may refer to them as limited liability companies (LLCs) or corporations. The key difference Unlike LLCs in the US, LLCs in other countries pay taxes individually rather than as a company. According to Pakistan’s limited liability company structure, the company pays taxes first and then the directors pay taxes on their individual incomes. 

The next step is to register the business name by NTN number and to file tax returns

The next step in registering your business is obtaining an NTN number. To facilitate the filing of tax returns or paying taxes on business income, businesses are required to obtain a unique numerical identification in order to track their records. The Federal Board of Revenue (FBR) will allow you to file your tax returns once you have been assigned an NTN number.

The incorporation certificate could finally be obtained.

Registering a company in Pakistan ends with a certificate of incorporation. In addition to the name and address of your company, the certificate is issued by SECP. This certificate also contains your company’s registration number.

It may seem complex at first, but once you get the hang of it, it’s not too bad. Having done that, you will find incorporating your own company much easier than registering through other government agencies.

SECP accepts registrations from anyone

Registration with SECP is open to anyone. The process of starting a company in Pakistan does not require a license or permit.

Companies in Pakistan are regulated by SECP, a government agency. Islamabad is the head office, and Lahore, Karachi, Peshawar, Quetta, and Multan are its regional offices.

All private businesses operating within Pakistan’s territorial jurisdiction that are not public limited companies (PLCs) are registered with SECP. Therefore, private companies do not have to publish their financial accounts, but must still comply with certain other regulations (for example, filing annual returns).

We can help you register and file your new company

You can trust our Corporate House with all your business affairs. In addition to helping startups register companies in Pakistan, we are experts in corporate registration. Get in touch with us if you’re looking for a reliable solution!

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