Requirements and Process of Company Registration
Company Registration Services in Karachi, Islamabad, Rawalpindi, and Lahore: Step-by-Step Guide to Legal Business Formation in Pakistan
Company registration services in Karachi, Islamabad, Rawalpindi, and Lahore are designed to help entrepreneurs and businesses navigate the legal process of establishing a company in Pakistan. Company registration in Pakistan is a legal process that involves several essential steps to establish a business as a formal corporate entity. To begin, the first requirement is choosing the type of company to be registered, which can be a private limited company, a public limited company, or a single-member company.
The next step is to select a unique company name, ensuring that it complies with the guidelines provided by the Securities and Exchange Commission of Pakistan (SECP). A registered office address is also mandatory, and it should be within Pakistan. Additionally, the company must appoint a minimum of two directors for a private limited company or three directors for a public limited company. The directors must be Pakistani citizens, while foreign nationals can also be appointed, provided they fulfill the legal requirements.
To formalize the company’s structure and purpose, the company must also draft its Memorandum of Association and Articles of Association, clearly outlining its business objectives, internal management structure, governance model, and operational framework. Our expert company registration lawyers in Karachi, Lahore, Islamabad, and Rawalpindi ensure that all legal requirements are meticulously met, providing you with a seamless and compliant registration experience.
Steps to Successfully Register a Company in Pakistan
The process of company registration in Pakistan begins by submitting the required documents to the SECP’s online portal or regional offices. This includes the completed company registration form, Memorandum and Articles of Association, identification documents of the directors and shareholders, and proof of the registered office address. Once these documents are verified, the SECP issues a certificate of incorporation, confirming the establishment of the company. Following this, the company must apply for a National Tax Number (NTN) from the Federal Board of Revenue (FBR) and register for sales tax if applicable. The company also needs to open a corporate bank account to manage its financial operations. Upon completion of these steps, the company is legally recognized and can commence its operations in Pakistan, ensuring compliance with all corporate and tax laws.
Company Registration in Pakistan/LLC Business Registration: Requirements and Procedures in Pakistan
If you’re looking to establish a company in Pakistan, it’s crucial to understand the requirements and procedures for registering a business here. Here, we will provide you with valuable information on the requirements for company registration in Pakistan, as well as the associated costs. By following these guidelines, you can select the most suitable method for forming your new business in Pakistan.
Requirements for Company Registration/LLC Business Registration
To initiate the company registration process in Pakistan, you need to apply for incorporation. The initial step is selecting a unique company name that does not contain any prohibited words. Once the name is chosen, you must submit the required documents to the Securities and Exchange Commission of Pakistan (SECP), which will then verify the documents. These specimen documents can be obtained from the SECP website.
Primary Documents for Company Registration/LLC Business Registration
Memorandum of Association (MoA) and Articles of Association (AoA):
When registering a company, the primary documents required are the Memorandum of Association (MoA) and the Articles of Association (AoA). The MoA outlines the fundamental objectives of the business, covering various activities such as trading or general order suppliers. The MoA should be prepared in four copies and must include the company’s contact details and registered office address.
Choosing a Company Name/Business Name
The first step in the company registration process in Pakistan is selecting a unique name for your company. It should not contain any banned words or phrases. Once you’ve decided on a name, you must submit the necessary documents to the Securities and Exchange Commission of Pakistan (SECP). These documents should be legally valid. You can obtain a digital signature through the National Institutional Facilitation Technologies, and the SECP provides a guide on filing and completing the registration forms.
Company Registration/New LLC Business Registration Procedure
To complete the company registration process, you need to follow these steps:
- Company Incorporation Brochure:
Access the company incorporation brochure on the eServices portal, which offers comprehensive guidance on how to incorporate a company.
Online Form Submission
Fill out the online form with all the required data and provide a signature with a PIN.
- Incorporation Fee Payment:
- Make the payment for the incorporation fee using a credit card, debit card, Bank challan or ATM. The fee amount depends on the Authorized Capital of your company, with higher amounts incurring higher fees.
Additional Registrations:
Alongside the company registration forms, you must also register for income tax and professional tax. These registrations involve the following steps:
a. Income Tax Registration:
Apply for a national tax number (NTN) by visiting the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) or the online portal.
b. Professional Tax Registration
Register with the Excise and Taxation Department in the district where your company operates.
c. Employee’s Oldage Benefits Institution (EOBI) Registration
Register your company with the Employees Old Age Benefits Institution in Sindh, Punjab, Balochistan or Khyber Pakhtunkhwa to ensure that insured employees receive a pension upon retirement.
d. Social Security Institution Registration
- Complete the registration process with the Federal Employees Old Age Benefits Institution.
Company Registration/LLC Business Registration Process
The company registration/LLC business registration process in Pakistan involves the following steps:
a. New Company/LLC Name Registration
Register the company name, ensuring it is unique and doesn’t include any prohibited words. The SECP evaluates the company’s incorporation documents and grants digital signatures, which are obtained through the National Institutional Facilitation Technologies.
b. Document Submission for LLC Business/Company Registration
Submit all the required documents to the SECP, including a copy of the director’s passport, contact number, physical address, paid capital declaration, and directors’ positions.
c. Listing on SECP Website
After submitting the documents, the company will be listed on the SECP website, and an incorporation fee will be applicable.
Preparation of Article of Association & Memorandum of Association for Private Limited Company
Prepare the Articles of Association and Memorandum of Association, which outlines the company’s general objectives and business plans. It should include details specific to your company, such as being a general order supplier or trading company.
SECP’s Incorporation Certificate
Apply for the SECP’s Incorporate Certificate, which typically takes 24 hours to process, barring any objections. Certain businesses, such as non-banking finance companies, security services, and associations of not-for-profit organizations, may require prior licenses, leading to a longer processing time. Overall, the registration process is generally straightforward.
Memorandum of Association and Articles of Association of the Company
To incorporate a company in Pakistan, you must submit the Memorandum of Association and Articles of Association (MoA). Once the SECP approves these documents, the company can commence its operations. Depending on the city where the business is located, acquiring a company seal may also be necessary. If it’s not applicable to your company, the SECP will refund the application fee and send a confirmation email.
Cost of Company Registration:
- When registering a company in Pakistan, you are required to pay a registration fee to the SECP. This fee is determined based on the authorized capital of your company and typically amounts to ten per cent of its nominal share capital. The minimum capital requirement is one hundred thousand rupees, while the maximum capital varies based on business profile, number of directors, and initial investment of subscribers. It’s important to check the SECP website or other reliable sources for the most up-to-date filing fee information.
Comparison of Registration Costs:
- The cost of company registration in Pakistan is relatively affordable. For companies without share capital, the registration fee is Rs 200. Importing goods from abroad incurs higher costs, while exporting goods results in lower fees. Importing products without a license is possible, and foreign investors can establish 100% foreign-owned companies in most business sectors. Shareholders of any nationality, except Israeli nationals, are permitted. Two types of share capital exist in Pakistan: authorized and paid-up, with the amount of authorized capital declared in the company’s Articles of Association.
Application and Name Availability:
- Upon submitting the application form, you will receive an availability letter, which reserves your chosen company name for a period of sixty days. This timeframe is more than sufficient to complete the company incorporation process in Pakistan. Applying online is a cost-effective option, while submitting documents by mail may incur additional fees. For detailed information about the costs associated with company registration in Pakistan, please refer to the end of this article.
Note: It’s advisable to seek legal advice from experts in Pakistan, especially if you plan to incorporate a more complex company, before proceeding with the registration process.
