Business

A Step by Step Guide for Registering a Company in Pakistan

Company registration  remains the most favoured form of business organisation in Pakistan. Incorporation of a company  helps boost business for medium as well as large-scale business enterprises.  All company registrations and regulations are controlled by  the Companies Ordinance Act of 1984.

The function of administration of all companies is governed by the Securities and Exchange Commission of Pakistan and the Registrar of Companies appointed by the Securities and Exchange Commission of Pakistan (for the particular province) where such company is to be registered.

Under the provisions of the Companies Ordinance, 1984 a company is a corporate body with separate legal entity and a perpetual succession. A company may be formed by persons associating for any lawful purpose by subscribing their names to the Memorandum and Articles of Association and complying with other requirements for registration of a company under the provisions of the Ordinance.

 According to the Companies Ordinance, 1984 there can be three different types of companies:

  • A company limited by shares
  • A company limited by guarantee
  • An unlimited liability company

The following steps needs to be followed to create and register a company in Pakistan.

1. Seek approval on name of the company

The first step towards incorporation of a company is to seek the “availability of name” for the proposed company from the concerned registrar of companies. Although, it sounds simple enough, but there are certain prohibitions and restrictions, the applicants have to look into while choosing a name for a company. This is the SECP official guideline for choosing a name.

2. Pay fee’s  associated with incorporation and registration of the company

Post receiving the name availability certificate  from SECP , the applicants have to file an  application for incorporation. There are two ways to go about it:

a. Online Incorporation

For an online submission, the applicants are required to create an account (username and password) under user registration system of eServices and generate PIN for signing the application. A video tutorial prepared by SECP for user registration at eServices is available here.

Once you submit the process as per the guidelines suggested in the video, you can now pay the fees associated with company registration process by credit card, debit card or online funds transfer (the online transfer facility is available for Muslim Commercial Bank (MCB) and United Bank Limited (UBL) account holders only.) Alternatively, the print out of the fee challan can be submitted in the designated branch of MCB or UBL.

b. Offline Incorporation

The fees associated with the process can be paid by generating manual challan from this Challan link and submitting it alongwith a company registration application at the designated branches of MCB or UBL in Pakistan.

Post payment of the fee, SECP then requires the applicant to submit the following documents:

  • Declaration of compliance
  • Identification of office’s location
  • Copies of CNIC/NICOP of the subscribers/ directors/ chief executive officer/ nominee (for single member
    company)/authorized representative or copies of Passport in case of a foreigner
  • NOC/Letter of Intent/ License (if any) of the relevant regulatory authority in case of a specialized business
  • In case the subscriber is a foreign company, the profile of the company, detail of its directors, their
    nationality and country of origin, certified copy of its charter, statute or memorandum and articles etc.
  • Copies of  the Memorandum and Articles of Association with each member’s signature, where:

Memorandum of Association explains the business sector of your company e.g. Institution, Travel agency, Trading or manufacturing, Supply or chain of stores. To put simply, MOA tells about the relationship of your company with the outside world.

Articles of Association lets know about the day-to-day proceedings within the company i.e. what role CEO and directors would play, business concerned meetings and the appointments of employees, in short- how the company will run.

At the completion of the process, the subscriber registering the company shall receive a Certificate of Incorporation issued electronically or in physical form.

Once the certificate of incorporation is received, a private company /single member company can start its function.

3. Obtain a digital signature and create a company seal

The signature is granted by National Institutional Facilitation Technologies (NIFT) and can be obtained by using the electronic services of the SECP. After the certificate of incorporation is issued, the company representatives may be  required to present a company seal, depending on the where the business will be head quartered or started.

4. Register for Income, Sales and Professional Taxes

To register for Income tax, the company will have to  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 include:

  • NTN form
  • Incorporation Certificate
  • Memorandum and Articles of association
  • Bank account number
  • Copies of National Identity Cards (NICs) of companies’ Directors
  • An attestation of business address

Sales tax, like the income tax can be registered for, by applying for a Sales Tax Number (STN) at the tax facilitation centre of RTO of FBR. For the professional tax, provided it applies, the company will have to register with Excise and Taxation (ET) Department of the District.

5. Register with ESSI and EOBI

Depending on the location of the business, the company will  need to register with

  • Punjab Employees Social Security Institutions (PESSI)
  • Sindh Employees Social Security Institution (SESSI)
  • Likewise (BESSI) or (KPKESSI) for Balochistan and Khyber Pakhtunkhwa respectively.

Under the Employees Old Age Benefits Institution (EOBI), insured employees are entitled to a pension, upon retirement, invalidity in the case of disability, old-age grant and survivor’s pension. Every industry or a commercial establishment with five or more employees has to be registered with the Federal Employees Old age Benefits Institution (EOBI).

6. Register with the Labor Department of the District

To safeguard the labor standard of the workers, all company’s are required to registration with the District Chief Inspector of the labor department in each district. For registration, employer must submit the application form A accompanied with the relevant bank form.

Once these requirements are met and vetted by SECP, the company is then ready to become an independent operating body in Pakistan and will be treated as such.

Related: How to Register a Partnership in Pakistan

12 Comments

12 Comments

  1. Nouman Nazim

    07/03/2015 at 8:01 pm

    If your business is based in Islamabad than you should register with IESSI (ICT Employees Social Security Institution), I-10 and Labour Welfare Department, H-9, Islamabad.

  2. Zach Thalman

    25/06/2015 at 5:50 pm

    This sounds like how you would register your company in any country not just Pakistan. To my knowledge, I thought that you had to get the name of your company approved so that you don’t violate any copyrights that other companies have on names or slogans. You would also have to pay a fee to register, which I don’t think it would cost that much money. You would need to register so the government would be able to get your taxes and know who to tax. http://www.registryunlimited.com/services.html

  3. Abdul rehman

    16/07/2017 at 1:26 pm

    Hi
    I want to start small trading company in Lahore. Is necessary to obtain Esai and Eobi and labour register certificates?

    I

  4. Muhammad Talha Rashdi

    19/09/2017 at 11:33 am

    Can u help me to registration for my company?

  5. muhmmad haris

    31/01/2018 at 2:37 am

    Can u help me to registration for my company?

  6. Sarmad

    13/06/2018 at 2:54 pm

    Can there be a one-man distribution company? For example, if I want to become a distributor of flower seed company abroad, will it be mandatory to make partners and employ an accountant and other supporting staff?

  7. Ali Akbar

    09/09/2018 at 10:18 am

    HI I WANT SECURTY OF MY DIAGNOSTIC CENTER NAME SO ANY ONE NOT COPY THIS NAME
    KINDLY ANY ONE TEL ME ABOUT THIS

  8. Sohail Iftikhar

    17/05/2019 at 12:03 am

    I want to register my single owner company and Name registration please guide me for procedure.

    • MUHAMMAD IMRAN

      23/06/2019 at 10:09 pm

      Aslam-0-alaikum

      Mr Sohail Iftikhar..

      Please contact me, I will guide you, how to register a company in Pakistan.

      Whatsapp: 003215445040

  9. Asad Ali Shah

    25/05/2019 at 8:01 am

    Please tell me offiline code of easy paisa on mobilink jazz like telenor *786# tell me jazz offline code

  10. Hafiz Ammar Javed

    02/07/2019 at 7:34 pm

    Dear sir.
    i m a DAE civil diploma holder can i register a small construction company for house building and designing please guide

  11. Jawid

    12/07/2019 at 7:10 pm

    I need to open an export company in pakistan

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