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How to register a company in Pakistan
How to register a company in Pakistan
In every part of the world starting a business requires a couple of mandatory steps. It’s like a universal rule no matter what kind of business it is not nor which country you are in. One of those mandatory steps is the registration of your company. It is like one of those first basic steps that need to be taken before you can actually start your business operations. In Pakistan, registering a company is a very straightforward process albeit it might be a lengthy one. So if you are looking to register your company in Pakistan then listed below is the steps you need to follow.
Name the company and get an approval- The first and foremost step of registering a company is deciding on what you shall call your company. Once you have selected a name, you need to get the name approved and make sure it is not one of the prohibited terms of Pakistan. Maintaining this rule is a must. Any sort of disallowed words will not be approved by the SECP. Furthermore, you also need to ensure that you do not choose any names that are already assigned to existing companies. If such a thing happens then your name will not be accepted by the SECP either.
Registration and Incorporation fees: With the naming step out of the way, its time to move on to the payment stages. In order to register your company in Pakistan, you need to pay a small fee for both registrations as well as for incorporation. The payments are received at any branches of the Muslim Commercial Banks (MCB) and they can be paid with any bank challans. Once the payment is done the SECP will ask you to provide the following documents including;
- Declaration of compliance.
- Identification of location.
- Copies of the Memorandum and Articles of Association with the signature of each member.
- All other documents relating to the directors, secretary, chief accountant, auditors and others.
Digital Signature and Company Seal- Once you get your incorporation certificate you will be required to get a company seal. The company seal is dependent on the city in which you are located in. Some states want all of their corporations to have their own corporation seal which is otherwise known as a company seal. This seal will be used on the day to day activities of the business. In terms of the digital signature, that can be obtained by visiting the E-services of SECP. The National Institution Facilitation Technologies is responsible for providing the signature.
Income, sales, and professional taxes: Now that you have taken the digital signature and secured your company seals we come to the fourth step of registering a company in Pakistan. First, you need to register your company for income tax. This can be applied at the tax facilitation of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). At the RTO you should be applying for the National Tax Number, otherwise known as the NTN. In order to apply for this application, one would require the following
- NTN Form
- Proof of registration
- Memorandum and Articles of Association.
- Bank account
- Copies of the National Identity Cards of the directors of the company
- Attestation of business address.
In order to apply for the Sales Tax, one has to follow the same procedure as the Income Tax. Only this time you will have to fill out the Sale Tax Number (STN) at the FBR.
On the other hand, for the Professional Tax, you will need to go to the Excise and Taxation Department for the District and register with them.
Labor department of the district: The final stage of registering a company in Pakistan is with the labor department of the district. You will be required by law to register with their association as well. This is basically done so that the standards of labor rights are thoroughly maintained. This is mandatory for all companies except for the ones which are self-run. The registration process takes place with the District Chief Inspector of the Labor Department of the district the company is located in. The requirements for registration with the labor department are very simple. All you need is an application of a form and your bank challan. Submit those two documents and you are done.
That concludes the registration of a company in Pakistan. While there may be quite a number of steps that needs to be done, they are very simple and straightforward. Registering a business and running it in Pakistan is very easy which is why more and more companies are starting up in this country.