The law that directs company registration in Pakistan is the Companies Act 2017 (the Act). This Act provides full details about the formation of a company and how to manage it. Currently, the authority to register a company lies with the local Company Registration Office (CRO), which operates under the Securities & Exchange Commission of Pakistan (SECP). SECP regulates the formation of companies, ensures they follow the rules, and grants licenses for certain types of businesses. Right now, you can find CROs offering their services in almost every major city of Pakistan, including Islamabad, Karachi, Lahore, Peshawar, Quetta, Multan, Faisalabad, and Gilgit.

In January 2024, the Securities and Exchange Commission of Pakistan (SECP) approved and registered 2,651 new companies, 10% more than last year’s number. Now, there are a total of 212,108 registered companies in Pakistan. There are multiple reasons to invest in Pakistan. Some of the main benefits of registering a company in Pakistan may include low competition, a vast population, and a quickly expanding economy. Registering a company in Pakistan involves several steps, and the process may vary slightly depending on the type of company you wish to register. In this research article, our research team compiled a list of step-by-step guides to registering a company in Pakistan. For a detailed walkthrough on registering a startup, read our complete guide on How to Register a Startup Company with SECP in Pakistan.

How to Register a Company in Pakistan? Step-by-Step Guide

Registering a company with the Securities and Exchange Commission of Pakistan (SECP) can be confusing if you try to do it alone. But if you break the process into small steps, it becomes easier to understand. This will help you complete the whole process on time in Pakistan. These steps may include:

Choose the Type of Company

In Pakistan, some common types of companies include sole proprietorship, private limited company, and public limited company. The majority of people in Pakistan are not aware of the different legal options available to register a business. They are incapable to find and differentiate between them. Before you learn how to register a business in Pakistan, it’s good to know the different types of companies so you can pick the one that fits your business best, listed as

Select a Suitable Business Structure

Based on your business model, founding members, and available funds, you can decide on a company-type in Pakistan. If you are a small business owner planning to stay the only owner for a while, you might choose a single-member company or get a silent partner to start a private limited company. Any business can begin small and expand later. You can change from a single-member company to a private limited one or even become a public company and list your shares for sale. To learn more about protecting your intellectual property, check out our Comprehensive Guide to Patent Registration.

There are two main types of public limited companies in Pakistan, unlisted and listed, mentioned as:

Choose and Approve a Company Name

SECP, the premium corporate governing body, provides easy online company registration in Pakistan. It allows the professional communities or companies to apply for a company name alone or in combination with the whole registration process. However, ensure the proposed company name is available and fulfills the legal criteria. However, before finalizing the company name, it is important to check its availability and ensure it meets legal requirements. The name should be unique and relevant to the business without causing problems with other brands or companies. To get your company name approved online, go to the SECP’s eServices Portal. Sign up, pick a name for your company, and send it in with a Rs.200 fee. If you prefer offline approval, you must fill out the INC-Form-1 and pay Rs.500.

Prepare Required Documents

When registering your company in Pakistan, you must require all the necessary documents to confirm your business ownership. Prepare the MOA, which includes the company’s name, address, objectives, and details of shareholders and their shares. The format may vary depending on the type of company. When you’re registering your company in Pakistan as per the Companies Act, make sure you have these things ready:

• Copies of the Computerized National Identity Card (CNIC) of all the founding members.
• Proof of the registered office address
• Memorandum of Association to say what type of company it is and who the members are
• Articles of Association to explain what the company does and how it operates
• Bank statement showing that the required capital has been paid
• Details of directors and their nationality if it’s a foreign company
• Registration fee slip

To register a private limited or single-member company in Pakistan, you will need to pay a registration fee. If you apply online, the fee is PKR 1800. If you choose the conventional method, it’s PKR 3500.

If you are a student or a recent graduate, make sure to read our Step-by-Step Guide to Degrees Attestation from HEC in Pakistan for a seamless attestation process.

Get Digital Signature Certificates (DSC)

Collect all the required documents and apply for digital signature certificates for the directors, members, or shareholders. Permitting members to sign company registration documents electronically may speed up the whole process. They won’t need to visit the registrar’s office just to sign documents.

Get a Certificate of Incorporation

After gathering all the required documents and getting them signed by the members, now it’s time to submit them to the SECP office. As you will have already approved your company name, the process may be easier and smoother. The SECP will check or review your application, documents, and details to give you the Certificate of Incorporation. If everything is in order and complies with the legal requirements, they will issue the Certificate of Incorporation. This document or certificate is your license to start operating the business legally.  

Open a Business / Corporate Bank Account

Using a personal account for your company operations isn’t secure or official. So, you should set up a business bank account to ensure that all your transactions are legal. Banks typically require your Certificate of Incorporation, NTN, and some additional information to open an account for your company.

Shareholders Deposit Funds

When a company is formed, its owners, known as shareholders or members, contribute money or assets to it as capital. This capital is used to finance the company’s operations and growth. Shareholders must deposit the capital amount of their shares into the company’s bank account. This ensures that the company has the necessary funds to start its operations and carry out its business activities.

For example, if a company has three shareholders, each owning an equal share, and the total capital required for the company is $30,000, then each shareholder would need to deposit $10,000 into the company’s bank account.

Apply for a National Tax Number (NTN)

To handle your income and business taxes properly, you have to register with the Federal Board of Revenue, and they will give you a National Tax Number (NTN) and Sales Tax Registration Number (STRN). You usually need to show this number for many business deals and transactions. Then, every year, you will need to file tax returns to make sure your company pays the right taxes and follows the tax rules.

Register for Sales Tax (if applicable)

If your business deals with products that are produced locally or imported, According to the Sales Tax Act 1990, a business is exempt if it deals in computer software, medicines, poultry feed, and raw agricultural produce. If your business isn’t exempt, you will need to register for sales tax. You will receive a Sales Tax Registration Number (STRN), which must be included on all receipts. Then, you will have to submit the tax you collect by the 15th of the next month.

Companies might also need to register or sign up with Social Security and EOBI (Employees’ Old-age Benefit Institute) to take care of their employees. You might not need it right away, but as your workforce grows, you have to think about it. There are plenty of promising businesses you can start, expand, and get legally set up in Pakistan.