In light of recent digitalization initiatives made by the Pakistani government, the Securities and Exchange Commission of Pakistan (SECP), formed to regulate and modernize the corporate sector, has received major consideration. Intending to assist the nation’s business community, this state-owned regulatory body is now digitally powered by a robust internet platform.
Therefore, prospective business owners who want to register a company in Pakistan can now do so easily without than having to deal with the hassle of submitting a physical application. We have your back. We shall outline the offline and online business registration processes in Pakistan in this blog in accordance with SECP regulations.
The Complete Guide To Company Registration In Pakistan
You can perform Company Registration Online in Pakistan in the following steps To register a corporation in Pakistan, you must complete four essential stages. The process of registering a corporation in Pakistan could take up to 1.5 months. It is founded on a few crucial processes, each of which has particular prerequisites outlined below.
1. Reservation For Business Name
Reserving a business name is the first and most crucial stage in incorporating a business. Whether submit your application physically or through an online application process. You may discover details about the online application and application procedure on the SECP website. As a result, in order to register your business online in Pakistan, you must first register on the SECP’s e-portal.
2. Account Creation On The SECP Online Portal
As a new user, you must select the “Sign up for National or Foreign/POC holder” option. The form must now be filled up with the required information. A four – digit pin number will be sent to you by email and SMS after you submit the form. Most importantly, it is crucial to note that the CNIC/passport number and password you gave while registering on the portal will act as your login information.
3. Choose The Name Reservation And Company Incorporation/Registration Option
After successfully logging into the website, you must choose “Name Reservation and Company Incorporation” from the list of choices. Now, suggest three names for your business. The name needs to fit the kind of business you’re conducting. Please select the relevant option from the drop-down box to define your business’s operations and nature. Choose a payment option from the list using a debit or credit card, a bank that offers the 1link service, the Easypaisa mobile wallet, an ATM, or mobile or internet banking.
4. Provide Your Company’s Contact Information And Phone Numbers
Kindly complete out the fields below with information about your company, including its phone number, email address, registered offices, and industry description. However, you need to have minimum capital in your account to register and start a company.
How Much capital is required to register a business in Pakistan?
The law only permits A firm to raise the amount of capital specified in the memorandum of establishment. Experts call it the approved capital. Therefore, a company must have PKR 100,000 in authorized capital to be incorporated and registered in Pakistan.
For online applications, the entire registration cost is PKR 1,800, while for physical submissions, it is PKR 3,500. Officials assess the bare minimum incorporation fee on PKR 100,000 of firm capital. The magnitude, location, size, and type of the firm, however, could all have an impact on the price.
Physical Application Process For Company Incorporation/Registration
The procedure for physically applying SECP is as follows. The first step is to Download the application form and then fill out the required application form.
To submit an application to a registrar, you must visit your closest company registration office, which has multiple locations spread over nine cities.
If your application satisfies the relevant requirements, the registrar will subsequently give a letter indicating the availability of your requested name. The name will be held for sixty days (two months) starting on the date the letter is issued, which is sufficient time to finish the procedure of incorporating a company in Pakistan.
Pro Tip: You might be better off favoring an online application over a physical one, and it might only cost you half as much as what is charged for physically applying. If you apply online, for example, you will have to pay PKR 200.
However, if you choose the manual method, you might have to pay PKR 500 in fees for a bank challan made in the name of the Securities and Exchange Commission of Pakistan (SECP). Furthermore, if you register your firm through a physical application, the incorporation charge is twice the original tariff. By rejecting conventional approaches, it appears that Pakistan’s government is devoted to furthering the concept of e-governance. Read Step-By-Step Guide To Company Registration In Pakistan From Expert Here.
Submission Of Incorporation Documents
To register a business in Pakistan, you must give SECP the incorporation documentation. After having your company name approved, the second critical step you must take to create a company in Pakistan is to file incorporation documents with the Security & Exchange Commission of Pakistan (SECP). These documents are below:
- Articles of Association
- Association Bylaws
- CNICs for the Directors in scanned form
- Scannable bank deposit receipt (In case of Offline Payment)
- The subscribers’ consent to the submission of documents
- Fee for registering/filing
Memorandum Of Association:
A document outlining your business or sector that is legally binding
Article Of Association:
A document outlining the duties of the board of directors of a corporation.
A person can also submit important documents in PDF format using SECP’s e-portal. There is also the possibility to pay registration fees online for Pakistani corporations. Therefore, the SECP system issues a digital signature and certificate of incorporation. After the successful completion of application submission and payment of the Pakistani company registration cost, SECP evaluates and verifies the integrity of each document. The National Institutional Facilitation Technologies (NIFT) then issues your company a digital signature, which may be obtained via SECP’s e-portal.
Therefore, You must give a thorough presentation outlining the kind of business and operations of your firm to obtain the certificate of incorporation from NIFT and the digital signature. However, depending on the circumstances, this step’s needs may change.
Register Your Business For Taxation With FBR
For tax purposes, you must register your business with FBR. You must apply for a National Tax Number to register your firm for income tax. Moreover, it is one of the final and most essential phases of forming a Pakistan company. Therefore, you must apply for the National Tax Number to register your firm with the Federal Board of Revenue (FBR) for income tax.
The requirements that you must include with your application are as below.
- Form NTN, National Tax Number
- Your Company’s Registration Documents
- Association Memorandum and Articles
- Number of a bank account
- Copies of the directors’ Computerized National Identity Cards (CNICs)
- Actual Business Address
Send your application to the Federal Board of Revenue’s tax facilitation counter at the Regional Tax Office (RTO) that is most convenient for you. That why, You must obtain a Sales Tax Number (STN) and go through a similar process to register your firm for sales tax. On the other hand, the process for professional tax is a little different and requires that you register your company with the Excise and Taxation (ET) Department.