So, you want to know how to register a company in Pakistan? Then this guide is for you. Make sure you read the whole guide and let us know in the comments if it helped.
- For the registration of a company, you have to go to SECP e-services web page.
- You have to reserve company name first and you can do that by signing up for SECP e-services.
- Enter all the details in the form and submit a challan of 100 Rs in any branch of MCB or UBL.
- Provide all relevant details and pay a fee for company incorporation which is 1800 Rs.
If you are planning to open a company in Pakistan then you have to register your company. The Government of Pakistan has made the process of company registration easy and they are trying to make this process easier for the people.
The registration process is handled by the SECP (Security and Exchange Commission of Pakistan). So to register any company in Pakistan, you need to visit SECP office or SECP website to get all relevant details about the registration of a company.
If you want to know about how to register a company in Pakistan then you come to the right place. In this article, we will provide step by step guide to you about how to register a company in Pakistan.
Securities and Exchange Commission of Pakistan
SECP (Securities and Exchange Commission of Pakistan) handles all the company registration process in Pakistan. The SECP offer e-services and offline system for registering a company in Pakistan. You can look for a company name and its availability. There are different types of companies you can register in Pakistan.
Types of legal companies in Pakistan
Before knowing how to register a company in Pakistan, you have to know the types of legal companies in Pakistan.
- Private Limited Company
- Single Limited Company
- Public Limited Company
- Private Limited Company
Any two or more persons associated for lawful purpose can form a Private Limited Company by subscribing their names to the Memorandum of Association and complying with the requirements of the Companies Act, 2017.
- Single Limited Company
If only one member forms a private company, it is called a single-member company. You can form a Single Limited Company by complying with the requirements of the Companies Act, 2017.
- Public Limited Company
Any three or more persons associated for lawful purpose can form a Public Limited Company by subscribing their names to the Memorandum of Association and complying with the requirements of the Companies Act, 2017. There are two types of Public Limited Company, Listed and Unlisted.
A Public Listed company offers its share to the public and anyone can acquire its share. Those shares are a limited liability. The minimum capital required to set up a listed company is PKR 200 million.
An unlisted company does not offer its share to the public and the minimum capital required to set up this type of company is PKR 100,000.
To register a company you need to follow some steps and you need to have an understanding of documents to register a company in Pakistan. Here is the complete guide on how to register a company in Pakistan.
Reservation of company name and Company Incorporation
To register any company in Pakistan you need to decide the name of the company and check its availability on the SECP website. You should look at section 10 of the companies Act, 2017. There is a list of prohibited terms available on the SECP website which you cannot use in a company name. It is better to look at the list and decide the company or firm name.
This will save your time and try to choose a unique firm or company name. After deciding the name of your company, check for its availability. If it is available then you can reserve that company name by creating an online account with SECP.
Regulations Set by SECP for a Company or firm Name
Some regulations set by SECP for a company name are following.
- It should not be identical or resemble the name of any existing company or registered LLP.
- The company name shouldn’t be inappropriate or deceptive.
- Try not to include any word or words in the company name which are offensive to any section of the people
- It should not include any other word that in the opinion of the registrar is undesirable.
- Your company or firm name must not exploit the religious susceptibilities of people.
- Avoid using any word that is prohibited under Section 10 of the Act and Regulation 4 of the Companies (Incorporation) Regulations, 2017.
These are some of the provisions that you have to consider before deciding your company or firm name.
Steps to Reserve the Company Name
Here are the steps to reserve the company name and incorporation of the company.
- Go to SECP website and Log on to e-services page on the SECP website.
- You need to have a valid CNIC if you are a Pakistani National and you need a valid passport if you are a foreigner.
- To get a same-day registration service, you should select ‘fast track registration services’ (FTRS).
- Fill out the online form and submit a user registration form by providing your particulars.
- You will receive security codes via SMS or email that you need to write in the form.
- After security codes verification, a PIN will be generated.
- The user registration fee can be paid online through your credit/debit card, or you can take a print out of the challan. The amount can be deposited in any of the selected branches of MCB or UBL. The normal registration fee is 100 Rs.
After that, you will receive a confirmation email from SECP within a day. If there is no prohibited word in your company name then that company name will be reserved.
You can also reserve a company name and company incorporation using the offline system. You can submit your application in SECP registrar office with three proposed names in the application. The registrar will take 3 to 5 working days and will license you to use the proposed name in the company documents for company incorporation.
Documents required for company incorporation
There are some documents which you must have if you want to register a company in Pakistan.
- Memorandum of Association and Articles of Association. Their samples are available on the SECP website.
- Memorandum of Association explains your company relationship with the outside world under which business sector your company e.g. Institution, Travel agency etc.
- Articles of Association is about the day-to-day proceedings within the company. It tells about the role of the CEO and directors. In short, it tells about how the company will run.
- CNIC Copies of Directors, CEO, Nominee (for the single-member company) or copies of passport in case of a foreigner.
- NOC or letter of intent/ license from concerned authorities if you want to register some specialized business.
- In the case of foreign company incorporation, you need to provide more details such as List and details of Directors. The company profile, detail of Directors and their nationality. You need to provide Company charter’s certified copy. You need to provide Memorandum of Association and Articles of Association as well.
- Authorization of Subscribers for filing of documents.
- Registration/Filing fee.
- The total company incorporation fee is 1800 Rs for online submission if the nominal share capital is not more than Rs 100,000. For offline submission, the total company incorporation fee is 3500 Rs.
Register for Income and Sales tax
To register a company in Pakistan, you must have a National Tax Number (NTN). You can apply for a National Tax Number (NTN) at the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR).
The Federal Board of Revenue (FBR) handles all the tax-related matters in the country. The required documents to apply for a National Tax Number (NTN) are the following:
- NTN form.
- Registration Proof.
- Memorandum and Articles of association.
- Bank account number.
- Copies of National Identity Cards of companies’ Directors.
- Evidence of business address.
You can also apply for NTN through FBR website and to apply for a sales tax number (STN) visit regional tax office of Federal board of revenue (FBR) or FBR official website.
Certification of Incorporation and Company Seal
After submitting all the documents, the Securities and Exchange Commission of Pakistan (SECP) will evaluate them and they will check all the documents validity. A digital signature or company seal will be granted by the National Institutional Facilitation Center (NIFT). You can acquire it from SECP.
All company directors signature are needed to receive this company seal. You will get a certificate of incorporation from SECP if all your documents are valid. It will be issued to you in the physical form or electronically. When you get incorporation certification from SECP, you can start your business.
To register a company in Pakistan is easy nowadays. Before this e-service of SECP, people have to submit applications for a company or firm registration by hand. It was difficult for people to register their company but this online system has made it easy for people to register a company. SECP has become efficient and you can easily register your company.
We provided a guide for both offline and online procedures and the documents required to register a company in Pakistan. We suggest you to use online SECP (Securities and Exchange Commission of Pakistan) system to register a company in Pakistan. We hope that now you know how to register a company in Pakistan.