How to Register a Company in

Pakistan

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.

o For the registration of a company, you have to go to SECP e-

services web page.
o You have to reserve company name first and you can do that by
signing up for SECP e-services.
o Enter all the details in the form and submit a challan of 100 Rs in
any branch of MCB or UBL.
o 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.

1. Private Limited Company

2. Single Limited Company
3. Public Limited Company                                 
o 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.
o 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.
o 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.

o It should not be identical or resemble the name of any existing

company or registered LLP.
o The company name shouldn’t be inappropriate or deceptive.
o Try not to include any word or words in the company name which are
offensive to any section of the people
o It should not include any other word that in the opinion of the
registrar is undesirable.
o Your company or firm name must not exploit the religious
susceptibilities of people.
o 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. 

o Go to SECP website and Log on to e-services page on the SECP

website.
o You need to have a valid CNIC if you are a Pakistani National and you
need a valid passport if you are a foreigner.
o To get a same-day registration service, you should select ‘fast track
registration services’ (FTRS).
o Fill out the online form and submit a user registration form by providing
your particulars.
o You will receive security codes via SMS or email that you need to write
in the form.
o After security codes verification, a PIN will be generated.
o 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.

o Memorandum of Association and Articles of Association. Their samples

are available on the SECP website.
o Memorandum of Association  explains your company relationship with
the outside world under which business sector your company e.g. Institution,
Travel agency etc.
o 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.

o CNIC Copies of Directors, CEO, Nominee (for the single-member

company) or copies of passport in case of a foreigner.
o NOC or letter of intent/ license from concerned authorities if you want
to register some specialized business.
o 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.
o Authorization of Subscribers for filing of documents.
o Registration/Filing fee.
o 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: 
o NTN form.
o Registration Proof.
o Memorandum and Articles of association.
o Bank account number.
o Copies of National Identity Cards of companies’ Directors.
o 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.

Conclusion
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
 The Step-by-Step Guide to Company
Registration in Pakistan

There are a lot of reasons why to invest in Pakistan. Some of its prime benefits include low
competition, a huge population, and a rapidly growing economy. In this article, you will get an
overview of different legal entities that are available for foreign investors. We will also share the
step-by-step guide to company registration […]

July 19, 2018

There are a lot of reasons why to invest in Pakistan. Some of its prime benefits include low
competition, a huge population, and a rapidly growing economy.
In this article, you will get an overview of different legal entities that are available for foreign
investors. We will also share the step-by-step guide to company registration in Pakistan.
The information presented continues to change depending on the laws and amendments made in
Pakistan. We update our articles accordingly.

TABLE OF CONTENTS

1. Overview of Legal Entities in Pakistan

2. Types of Legal Entities in Pakistan
3. How to register a company in Pakistan
4. Alternatives to company registration in Pakistan

Overview of Legal Entities in Pakistan

Minimum No. of Minimum Capital Standard Time of
Type of Entity
Shareholders Requirement Incorporation
Private Limited PKR 100,000
2 6 weeks
Company (~USD 823)
Single Member PKR 100,000
1 4 weeks
Company (~USD 823)
Public Listed Company 200 million
3 6 weeks
(Listed) (~USD 1.6M)
Public Listed Company PKR 100,000
3 6 weeks
(Unlisted) (~USD 823)
 Branch Office No shareholders N/A 7 weeks
Liaison Office/
No shareholders N/A 7 weeks
Representative Office

Allowed Foreign Ownership in Pakistan

Unlike many other similar markets, Pakistan is very welcoming towards foreign investors.  Due
to negative international reputation, the country has significantly opened up to foreign
investment over the past years.
For example, you can even import some products without acquiring an import license.
Moreover, foreign investors can set up 100% foreign-owned companies in most business
lines. The shareholders can be of any nationality, except for Israeli nationals.

Minimum Capital Requirement in Pakistan

There are two types of share capitals in Pakistan, paid-up capital and authorized capital. Both
capitals must be declared in the Articles of Association when you register your company.
Paid up capital is the amount of money that the company receives from its shareholders. On the
other hand, authorized capital is the maximum amount of share capital that the company is
allowed to authorize to issue to its shareholders.
There is no official minimum capital requirement for private limited companies in
Pakistan.  For this reason, a common practice is to consider PKR 100,000 (~US$823) as the
minimum capital.
In reality, however, the paid up capital you inject must be in compliance with your planned
expenses. For example, if you plan on building a factory for your business, you must also have
sufficient capital for that.

Types of Legal Entities in Pakistan

More and more foreign investors recognize Pakistan as a market to invest in. In March 2018, for
example, foreign investment in Pakistan increased by USD 152.7. It is expected to grow by
17.2% by 2020.
If you are planning to invest in Pakistan, here are the types of legal entities that you can choose
from.

#1 Private Limited Company

Foreign investors can set up fully foreign-owned private limited companies (LLCs) in Pakistan.
The minimum number of shareholders needed in order to register this kind of company is two.
Any foreign national can be a shareholder in this kind of company, except for those coming from
Israel.
In general, PKR 100,000 (~US$ 823) is considered to be the minimum capital requirement.
However, take note that the actual minimum capital you need to inject depends on your planned
expenses.
Another requirement is that the registered address of the company’s office must be located in
Pakistan.
The incorporation time of a limited liability company in Pakistan is generally six weeks. The
registration is also subject to approval from the Board of Investment and you also need to obtain
clearance from the Ministry of Interior.

#2 Single Member Company

Foreign investors, apart from Israeli nationals, can also set up a single member company in
Pakistan with only one shareholder.
Just like a limited liability company, you can also set up a single member company in Pakistan
with PKR 100,000 (~US$ 823) of minimum capital.
The standard time of incorporation is four weeks and also make sure that the registered address
of the company will be in Pakistan.

#3 Public Limited Company

Generally speaking, a public limited company has their shares offered to the general public.
Those shares are with limited liability.
Anyone can acquire the shares. It may be through a public offering or through trading in the
stock market.
There are two types of public limited companies in Pakistan, unlisted and listed.
Listed Unlisted
Allowed Foreign Ownership 100% 100%
PKR
PKR 200 million
Minimum Capital 100,000
(~USD 1.6M)
(~USD 823)
Yes
Listed in Stock Exchange Shares must be subscribed by at least 500 No
applicants
Minimum No. of
7 3
Shareholders
Time of Incorporation 6 weeks 6 weeks

How to register a company in Pakistan

The Step by Step Procedure of Private Limited Liability Company Registration in Pakistan
The procedure of registering a public limited company is same as above. However, they may
require you to submit more documents.

Step 1: Approval of Company Name

This is the first step of company registration in Pakistan is choosing the company’s name. It is
important to devise a unique company name that would set you apart from the rest in the
industry.
You must follow the restrictions and guidelines. For example, make sure that your company’s
name does not include any prohibited words.

Step 2: Submission of Documents

Once the company name gets the approval, you need to submit the incorporation documents to
the Securities and Exchange Commission of Pakistan (SECP).

Step 3: Certificate of Incorporation

After submitting the documents, the SECP evaluates them. They check their validity. A digital
signature is granted by the National Institutional Facilitation Technologies (NIFT) and can be
acquired through the SECP.
Also, they issue the certificate of incorporation. Presentation of the company may be needed.
However, this depends on where the business started.
Step 4: Deposit of Shares

After the registration, shareholders must deposit their corresponding amount of shares to the
company’s bank account.

Step 5: Registration of Income, Sales, and Professional Taxes

In conclusion, the last step of company registration in Pakistan is the registration with the
Federal Board of Revenue (FBR) and issuance of a national tax number (NTN). A sales tax
registration number may be registered if applicable.

Alternatives to company registration in Pakistan

Branch Office

A branch office is a suitable alternative to company registration if your company wants to have a
presence in Pakistan without setting up a separate legal entity.
Branches carrying out a contract in Pakistan can be established. However, a branch office cannot
take part in any commercial or trading activities of whatever nature. Therefore, your activities
depend on the contract you signed. The contract restricts your activities.
The parent company owns 100% of the branch office in the country of origin. Since it is not a
limited liability company, it does not require any minimum capital either.
Process time for the registration takes up seven weeks. The permit can be valid for 1 to 5 years if
it has an approval from the Board of Investment (BOI).

Liaison Office

If you want to promote your products in Pakistan, you can set up a 100% foreign-owned liaison
office here.
Besides product promotion, you can also provide technical advice and assistance, explore the
various possibilities of joint collaboration, and export promotion in Pakistan.
However, this type cannot engage in commercial or trading activities and it is not subject to any
minimum capital either
A liaison office can only function according to the provisions of the contract or the assignment.
While part of the contract states that you can only provide technical assistance and product
promotion, you cannot engage in export promotion and other activities.
Hence, it is similar to the branch office. Therefore, there will be no shareholding since it’s going
to be in the country of origin only.
The standard time for establishing a liaison office in Pakistan is seven (7) weeks. Therefore, once
granted your permit will have a validity period of 1 to 5 years. Also, the Board of Investment
(BOI) needs to approve it.

How to start with company registration in Pakistan?

 If you are planning on investing in Pakistan, get in touch with Emerhub and we will handle the
process of company registration on your behalf.
All you need to send us to get started is:

 Name, addresses, and shareholding of each of the shareholders

 The amount of share capital
 Passport copies of the shareholders
 Proposed name of the company

Contact us via the form below and our consultants will gladly assist you with your company
registration in Pakistan.