Pakistan’s startup sector has had record inflows of more than $300 million this year, with a number of high-profile funding wins over the last few months. However, its new enterprises are facing a myriad of challenges as they attempt to get their businesses up and running.
Despite significant improvements in the Ease of Doing Business Index 2020, Pakistan still ranks among the world’s worst markets to enforce contracts and pay taxes.
Asif Saifullah Khan, a lawyer who works with startups and SMEs in Pakistan and the UK, is the founder of an online marketplace called Sidekick that helps startups and small to medium-sized entities navigate Pakistan’s complex business landscape.
“Sidekick provides a one-stop-shop to address your legal, accounting and finance, and tax needs,” said Khan in an exclusive interview with ProPakistani.
Sidekick is a platform available online and through an Android or iOS app that connects users — businesses — with qualified service providers. The platform’s users submit requests for consulting services from lawyers, accountants, tax advisors, and other business professionals, whose credentials have been thoroughly vetted.
“We want to give consumers a human touchpoint as they navigate through complicated tasks like tax filings and contract signings,” Khan said.
“Instead of just offering them software-based solutions, we want to provide them access to qualified, vetted professionals who can help them step-by-step,” he explained.
Khan said that new Pakistani businesses struggle primarily with understanding their tax obligations, and that only three million file their taxes annually in a country of over 200 million people. For years, many businesses and individuals simply did not file taxes, which is why there is a lack of awareness about the process of the filing of taxes.
Khan highlighted that the government’s recent efforts to expand the tax base and formalize the economy have pushed businesses to place extra emphasis on meeting tax regulations.
Pakistan’s tax rules and processes are still complex, which means that most new companies need extra help in understanding and fulfilling the requirements. This prompts companies to reach out to consultants to help them understand and fulfill the requirements.
Khan explained that Sidekick can do just that by allowing such businesses to speak to experienced lawyers and accountants who can guide them through complex tasks.
He added that, apart from tax-related issues, startups and small businesses tend to need help in drafting agreements and contracts, and that Sidekick’s professionals can help clients understand these contracts from a legal perspective so that oversights do not lead to problems further down the road.
“We vet each professional’s credentials before they’re allowed to join the platform so you can be sure that the professional is qualified to provide you services,” Khan explained, and mentioned that users can rate and review each engagement and leave behind testimonials.
Sidekick has on-boarded multiple professionals comprising mainly small to mid-sized law firms and accounting firms, as well as some independent practitioners. On average, these professionals possess more than ten years of work experience in their field.
The law firm Ahmad, Azim and Co. was one of the first firms that Sidekick approved to offer services on the platform.
The online marketplace also offers corporations its services in the form of an employee benefit. Large firms such as JSK Feeds Limited and Kulsum International Hospital have signed agreements with Sidekick to support their employees with tax filing and other accounting obligations.
Eighty percent of Sidekick’s users were sourced through partnerships with corporations, and it is aggressively looking to add more users and will sign on more service providers as its user base increases.
The company is focusing on its partnership approach and on expanding services to software technology parks and co-working spaces that have a number of startups and SMEs present on-site.
Khan also revealed that Sidekick is working on launching a number of new services and features. For example, the team plans to introduce a rapid assist tool in the first quarter of next year, through which clients can dial a number and speak to a consultant immediately. It also intends to launch a dynamic sales tax tool that will allow vendors to calculate effective sales tax rates on goods and services immediately.
“It’s very important for us to actually talk to users, and understand what their main problems and concerns are, and how we can help them,” he explained.
“Our online marketplace is a springboard for those conversations,” he added.
Sidekick is another addition to Pakistan’s rapidly growing startup ecosystem but is unique as specifically aims to support other startups and SMEs.
Khan accentuated that “Pakistan’s recent wave of startup funding is a sure sign that the sector is flourishing,” and that Sidekick is projected to become “a platform that supports the country’s new enterprises and helps them thrive”.
The writer didn’t bothered to even share Sidekick’s website or android app link
It’s a nice initiative for startups and already running businesses