Today we are going to talk about how to register a company in Pakistan. So far, we’ve discussed Business Pitch and Business Plans that were limited to the startup process. We now move onto a very crucial prospect i.e. of registration of a company, particularly in Pakistan. It is the last of endeavors in the course of business settlement, and for some entrepreneurs and founders; one of the ultimate goals. Therefore, it requires a broad comprehensive view on the subject of registration.
Hence, for your ease of understanding, we’ve simplified the procedures with a mindset that reader would have a better understanding of each necessary step, without having to dive into the complexity of the business. However, there is certain rules and ordinance which is followed by the Security and Exchange Commission of Pakistan. Here is a step by step guide to registering a company in Pakistan.
Requirements to Register a Company in Pakistan
- Name your company and Get it approved
While choosing the name for your company – make sure, not to use the Prohibited terms. Any deceptive or inappropriate words will not be approved by the SECP and the Validity of your proposed selection of name will be scrutinized. So as to assure that, it is neither identical with the existing companies’ name nor closely resembling. For that reason, you must abide by the criteria laid down for naming the company, to get the possible approval by SECP.
- Pay the fees for incorporation and Register your company
A name availability certificate is required from SECP and for the purpose, you may file an application. The fees for which could be paid using any bank challans at designated Muslim Commercial Banks (MCB). After this, you come to a level of registration where the SECP ask you to submit the following documents:
- Declaration of compliance
- Identification of office’s location
- Particulars of directors, secretary, chief accountant, auditors and other
- Copies of the Memorandum and Articles of Association with each member’s signature
- Get Digital Signature and Make a Company Seal
The signature is granted by National Institutional Facilitation Technologies (NIFT) and can be obtained using E-services of SECP. After the certificate of incorporation is issued, you may be required to present a company seal, depending on which city you’re going to start your business in. On the necessity point, it wouldn’t be wrong to mention that some states require a corporation to have a corporate seal, which is also sometimes referred as company seal.
- Register for Income, Sales and Professional Taxes
To register for Income tax, you’re supposed to apply for a National Tax Number (NTN) at the tax facilitation of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). The requirements for this application are:
- NTN form
- Proof of registration
- Memorandum and Articles of association
- Bank account number
- Copies of National Identity Cards (NICs) of companies’ Directors
- An attestation of business address
All of these are to be submitted at the nearest tax facilitation counter of Regional Tax Office (RTO) in Pakistan. Sales tax, like the income tax, can be registered by applying for a Sales Tax Number (STN) at the tax facilitation center of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). For the Professional tax, you’ll need to register with Excise and Taxation (ET) Department of the District.