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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Pakistan
With a population of over 150 million, Pakistan is one of the fastest-growing economies in Asia. Local and foreign investors looking to register company in Pakistan can do so individually or consult a business solution company like 3E Accounting. The startup ecosystem is picking up with continuous government support as well as a public-private partnership.
Why Incorporate in Pakistan?
Pakistan is a country that continues to develop, and by 2025 over 2 million will be within the middle-income households levels. Every investor planning to do businesses in Pakistan will experience high-speed internet connectivity and a well-educated workforce. The government of Pakistan is at the forefront in introducing three-year relief and developing regulations that allow local venture capital firms and investors to establish businesses.
Entrepreneurship in Pakistan is on its ascendancy, and with the introduction of the direct foreign policies, it has made it easier for applicants to register company in Pakistan. Again, through foreign investment incentives such as tax concessions, low-interest loans, double tax treaties, among others, there are more investment opportunities.
Lucrative Industries to Look at-in Pakistan
Pakistan’s economy is steadily growing, supported by five significant sectors. The five sectors include FMCG, chemicals and fertilizers, automotive, textile and energy, and petroleum sectors.
The Process of Registration
Foreign and local investors have a chance to register company in Pakistan whenever there have all the requirements. Before any applicant decides to register for a company, they must ensure that they get the right information. Having the right information would mean consulting the right business solution provider such as 3E Accounting. With 3E Accounting, you’re bound to get an array of services, including the following:
- Human Resource services
- Taxation and legal services
- Business license renewal
- Auditing and Accounting services
You can always get in touch through our contacts and experience the best professional services.
We look at the steps on how to register company in Pakistan that applicants need to know.
Step 1: Company Name Approval
Operating any form of business requires one to have a legal business name. The business name must be unique and easy to pronounce. In Pakistan, the Securities and Exchange Commission of Pakistan (SECP) is the agency in charge of name search and approval. The business name undergoes verification to determine whether it has followed the naming criteria and no other similar name is existing. After that process, SECP will issue you with a name availability certificate. The applicant then pays the incorporation fees at the approved commercial bank.
Step 2: Statutory Document Submission
After receiving the name availability certificate, the registration process requires the applicant to submit the statutory documents. The process to register company in Pakistan requires the applicant to acquire the digital signature and develop a company seal. The National Institutional Facilitation Technologies, which offers the E-Services, needs the applicant to have the digital signature. Now, through the E-services, the applicant will submit the following statutory documents:
- Copies of Memorandum and Articles of Association showing members signatures.
- An official letter of the testimony of compliance.
- Details of identification of the all the directors, chief accountant, company secretary among others.
- A registration identification of the location of the premise.
When the validation of the statutory documents is complete, the applicant will receive the certificate of incorporation.
Step 3: Tax Status Registration
Applicants must follow through the process to register for tax status to register company in Pakistan. The Regional Tax Office (RTO) and the Federal Board of Revenue (FBR) are the agencies responsible for Pakistan’s tax matters. What happens here is that the authorities issue the applicant with a National Tax Number where they can register for the income tax, sales tax, and professional taxes. The following documents must be submitted to the tax office by the applicant to register for the income tax:
- The National Tax Number form
- Memorandum and Articles of Association
- Copies of the Identification of all directors
- Company address
Step 4: Shares Deposit
The Company Act stipulates that the shareholders must deposit their equal share through a commercial bank account.
Step 5: Social Security Registration
Every applicant planning to register company in Pakistan must register with Employees Social Security Institutions (ESSI) and the Employees Old-Age Benefits Institution (EOBI). Again, the applicant will register with the district’s Labour Department by filling up application Form A and Bank Challan.