AKBAR GULL

091546-004
DOING BUSINESS
IN LAHORE 2010
• It provides a quantitative measure of
the national and local regulation.
– Dealing with construction permits
– Registering property
– Paying tax
– Trading across the borders
– Enforcing contracts
City, Province Ease of doing Starting a Dealing with Registering Paying Trading across Enforcing
business business construction property taxes borders contracts
(rank) (rank) permits (rank) (rank) (rank) (rank)
(rank)

Faisalabad 1 2 6 1 3 4 2

Multan 2 6 1 7 3 5 4
Lahore 3 3 3 4 3 13 8
Islamabad 4 1 8 3 1 11 10

Sheikhupur 5 9 8 5 3 7 6
a
Gujranwala 6 13 2 6 3 10 4

Sukkur 7 10 4 10 11 3 1
Peshawar 8 3 6 9 10 8 8

Karachi 9 3 10 11 11 1 3
Rawalpindi 10 8 5 7 3 12 10

Sialkot 11 12 11 1 3 5 10
Quetta 12 6 12 13 2 9 13
 DEALING WITH CONSTRUCTION PERMITS

• There are 13 procedure required for all

construction permits
• All these procedures will take average 165
days
• The cost is 527.6% of income per capita
• Pakistan is globally rank on 73rd in ease of
dealing with construction permits.
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• In Lahore an entrepreneur must wait around 45 days for the examination
and approval of business plan
 REGISTERING PROPERTY
• There are basic six procedure in Pakistan for registration of
property
1. Obtain a prove of ownership called fard
2. Purchase a stamp paper
3. pay stamp duty and capital value tax in the bank.
4. Hire a deed writer to write a sale deed
5. Present the document for final registration
6. Step 6 vary province to province in Punjab (Lahore) patwari is
responsible for the transfer of property and issuing fard
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• Registration of property is fastest in Lahore in
30 days.
 PAYING TAXES
• Pakistan’s tax to GDP ratio is lowest in the
world.
• The country ranks 143rd of 183 of economies
on the ease of paying taxes
• The FBR also provide you a list of tax payers
which helps any company to know either
there supplier is listed with FBR or not
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• Islamabad’s total tax rate is lowest that is 26%
of commercial profits and by comparing it
Balochistan is 31.2 % Punjab 31.5% and
Khyber 31.5% and Sindh is contributing 31.6%
 TRADING ACROSS BORDERS
• Pakistan ranked 78th of 183 in ease of trading
across the border
• Exporting a container through Karachi port
requires 9 documents and 23 days and a cost
of US$ 619 and rest of South Asia requires 8
documents 32 days and US$ 1364
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• As far as concerned imports require average 8
document 21 days with the average cost US$
693 by comparing it rest of South Asia it would
take 9 documents 32 days and US$ 1509
 ENFORCING CONTRACTS
• An effective contract enforcement and well
functioning judiciary are the essential pillars of
a transparent business environment
• On average it requires 47 procedural steps
and takes 3.5 years (1261 days) to enforce a
simple contract at a cost 27.2% of the project
value.
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• Resolving commercial disputes is more costly
and time consuming in South Asia
• It takes 679.9 days in middle east and 450
days in east Europe and central Asia
DOING BUSINESS IN LAHORE
INITIATING A COMPANY IN LAHORE
 PROCEDURE 1
• APPROVAL OF COMPANY NAME THROGH
SECP
Time : 1 Day
Cost :PKR 200
 According to companies ordinance 1984 it is
necessary submit in SECP company name for the
approval.
 SECP will approve name for 90n days in which
company must be incorporated
 PROCEDURE 2
• Payment of fee for the name registration and
company incorporation using bank challans at
designated MCB bank

Company have to pay registration fee and the

incorporation with MCB bank.
 PROCEDURE 3
• Register the company with SECP through
online services
Time : 1 Days
Cost : PKR 7000
Documents
 Declaration of compliance
 Offices locations
 Particulars of Directors, Secretary, Auditors chief
accountants and others
 Four copies of memorandum and article of association
with each member signature
 PROCEDURE 5
• Register for income tax by applying national
tax number tax facilitation center of the
regional tax office of federal board of revenue
Time : 3 Days
Cost : No cost
 PROCEDURE 4
• Obtain digital signature from national
institute facilitation technology (NIFT) trough
SECP e-services
 Time : 2 days
 Cost : PKR 1277
 PROCEDURE 6
• Register for sales tax by applying sales tax
number tax facilitation center of the regional
tax office of federal board of revenue
 Time : 6 days
 Cost : no cost
 PROCEDURE 7
• Register for profession tax with excise and
taxation department the district
 Time : 7days
 Cost : no cost
 PROCEDURE 8
• Register with the Punjab employee social
security institute
 Time : 7 days
 Cost : no cost
 PROCEDURE 9
• Register with the employee old age benefit
institution
 Time : 11 days
 Cost : no cost
 PROCEDURE 10
• Register with west Pakistan shops and
establishment ordinance 1969 with labor
department of the district
 Time : 7 days
 Cost : PKR 10
THANK YOU……