Small Business Management

Incorporation of Business

Group Members Aatika Ahmed Adeel Muzaffar Alam Dawar Shah Akhter Jehanzeb Anwer BBA VII Teacher: Sultan Raza



We would like to extend our gratitude to Ms. Humaira Naz for her cooperation to provide us information about her business and answer a few questions from us. We further look up to her cooperation. With guidance from our teacher, Mr. Sultan Raza we were able to look into the real working and establishment of small business in Pakistan.

Name of the Company: Cleano Services (Pvt.) Ltd. Address: Room No. 116, 1st floor. Aamir Trade Centre, off Tariq Road Karachi Name of the Owner: Ms. Humaira Naz CNIC No. of the Owner: 42000045079-45 NTN No.: 3010097-3

SERVICES OFFERED: y y y y y y y Carpet cleaning Sofa Set cleaning Chairs Fumigation Termite Treatment Watertank Cleaning Plumbing

For a technical level analysis of the organization, we first reflect on the basic processes and procedures to be followed by businesses in their setup. The initial and foremost task that a business must do is to get registered. Unlike Public limited company, Cleano services had an easy setup procedure. The registration process had the following requirements: a) Check whether the name you want to register with is available or not, as repetition and commonality of names is not allowed; meaning that the same name cannot be used for more than one incorporation. b) Submit the necessary documents - Articles and Memorandum of Association. The Memorandum of Association is the constitution of a company. It comprises of the name of

the company, the situation of the registered office, the objects for which the company is formed, a limited liability clause saying that the liability of the members is limited and the signatures of the members. The articles of association, on the contrary are the by-laws that govern the company and are based on the doctrine of indoor management. It is also called the Magna-Carta of the company and describes how the business operations shall be carried out. After checking for the availability of the desired name, Cleano Services filed the aforementioned documents, received a Certificate of Incorporation and hence got through the task of registration and incorporation. The next legality, which the company had to fulfill, was the attainment of an NTN or a National Tax Number. The application of the NTN can be done by any person who is liable for tax, or is presumed to be liable for tax, or needs an NTN number to carry out business. About fifteen years back, acquisition of an NTN was difficult and involved Bribery from 2000-10,000 rupees. However, today the process is very streamlined and customer friendly. The applicant fills in a form and along with his NIC or CNIC, deposits five hundred rupees income tax office and gets his NTN in the next five to ten days. In case of a business the CNIC of the members, partners or directors along with their descriptions serve the purpose. Since Humaira Naz had an NTN( 3010097-3), the only thing required for Cleano Services was the submission of the names and CNIC of the directors. As astonishing as it may seem, the credit for this new convenience goes to the proprietor of Cleano Services, which is indicative not only of her amazing problem solving skills but also of the initiative and proactiveness that is required from entrepreneurs. The company s initiation was basically a result of the entrepreneurial spirit of Humaira Naz, who wanted to do something different and feel responsible for her life. Humaira Naz was initially working as a consultant but during that time she felt that her needs to start a business so that her children have some support after her. So she thought of entering in an industry, which is still not well developed. The idea of starting up the cleaning and plumbing came to her when she observed a shortage of cleaning maids, electricians and plumbers in his area. She felt the demand for these was very high as every household requires these services. However, there was a shortage of supply.

The name of the company initially was Cleano services. As already mentioned Humaira Naz was on the consultancy side so she had no experience of forming a company. But she went ahead and formed the company learning along the way. Initially the firm wasn t employing any intensive machinery and the firm was more labor focused. This was an advantage as the labor in Pakistan is cheap. However, in order to provide a higher quality of cleaning and plumbing machinery was imported; these included vacuum cleaners, portable extractor, burnishers etc. Humaira Naz didn t conduct any research before starting of with the business. She thinks research is not very relevant in her business. Either the results have been much more than what was projected or were worse than negative, never ever have they been accurate to what was projected. She believes that you have to take one second to see if the product is already being used or not. If it is being used than make the product better and cheaper and it will sell. If it is in use anywhere in the world you have to just pitch an idea, why not sell it in Pakistan?


The concept of carpet cleaning is fairly recent in Pakistan. But carpet cleaning business is quite old and successfully running in other parts of the world with innovative technologies and methods of carpet cleaning. The company currently operating in Pakistan uses traditional equipment and old method of cleaning which is termed as Steam cleaning which involves the usage of water and detergents. However we plan to differentiate our services through usage of latest dry cleaning process as employed by similar businesses in the developed world. The equipment we plan to use for cleaning are: Powerwand...............................................$2195.00 Portable Extractor........................... $1595.00

25' Vacuum and Solution Hose Set...............$95.00 Manual Stainless Dual Jet Wand...................$195.00 Carpet Rake...............................................$25.00 Stainless Steel Upholstery, Stair, or Detailing Tool......$140.00 Rotovac 3-in-1 Carpet Cleaning Detergent............................. Hefei Gaomei Cleaning Equipment Co., Ltd Sofa Cleaner. $34.00

We plan to use a fairly new method of cleaning which involves the use of hot carbonated extraction system. This phenomenal carpet cleaning mixture lifts dirt to the surface where it is whisked away with the vortex power of the PowerHead, a high-performance unit that applies the cleaning solution and then sucks away the dirt and water. With the approval of the Carpet & Rug Institute, the hot carbonated extraction system uses less water than steam cleaning, leaving your carpets sparkling clean in hours, not days. And, less water with more suction means a deeper clean without wicking (wicking is when the water left from steam cleaning wicks to the surface, pulling dirt up along with it).