Complete Guide to Limited Company Registration in Pakistan (2025)

Forming a Limited Company in Pakistan is one of the most effective ways to build a credible and scalable business. Whether you’re a startup founder, small business owner, or investor, registering a company gives you a structured legal identity, financial security, and access to institutional growth opportunities. This article walks you through everything you need to know — from types and benefits to the step-by-step process and post-registration formalities.

What is a Limited Company?

A Limited Company is a type of business entity that exists as a separate legal person from its owners (also known as shareholders or members). This means the company can own property, enter into contracts, sue or be sued — independently of its owners.

The key feature is limited liability: shareholders are only liable up to the amount they invested. Their personal assets are protected in case the company runs into legal or financial trouble.

This structure is governed by the Companies Act, 2017 and regulated by the Securities and Exchange Commission of Pakistan (SECP).

Types of Limited Companies in Pakistan

1. Private Limited Company (Pvt Ltd)

The most common choice for startups and growing businesses. It offers flexibility and fewer regulatory obligations.

• Requires minimum 2 shareholders and 2 directors

• Maximum limit of 50 shareholders

• Cannot raise public capital or offer shares to the general public

• Suitable for partnerships, startups, family businesses

2. Single Member Company (SMC)

Ideal for individuals who want to run a business independently but enjoy the benefits of a separate legal identity.

• Can be formed by a single person

• Limited liability and legal protections still apply

• Often chosen by freelancers, consultants, or solo founders

3. Public Limited Company

Best for large-scale businesses or those planning to raise funds from the public or get listed on the stock exchange.

• Requires minimum 3 directors

• No limit on the number of shareholders

• Must follow stricter reporting, auditing, and compliance standards

Benefits of Registering a Limited Company

✔️ Limited Liability Protection

Owners are only responsible for the company’s debts to the extent of their shareholding. This shields personal wealth and encourages risk-taking.

✔️ Separate Legal Entity

The company can operate independently from its owners, enter into contracts, own assets, and be held legally accountable in its own name.

✔️ Investor and Bank Confidence

Banks, angel investors, and venture capitalists prefer investing in registered companies over unregistered businesses or sole proprietorships.

✔️ Brand Image and Market Presence

A registered entity with a “(Pvt) Ltd” tag automatically enhances your brand’s trust and reputation in the market.

✔️ Access to Government Incentives

Registered companies may access tax benefits, government grants, and IT park facilities in Pakistan.

Step-by-Step Process for Limited Company Registration in Pakistan

✅ Step 1: Name Reservation with SECP

• Choose a unique business name compliant with SECP’s Name Availability Guidelines

• Avoid words like “Federal,” “Authority,” or “Corporation” unless specifically allowed

• Submit your application online via SECP eServices portal

• Fee: PKR 200; approval within 24–48 hours

✅ Step 2: Drafting MoA and AoA

• Memorandum of Association (MoA): Declares your business scope and activities

• Articles of Association (AoA): Outlines internal rules, director responsibilities, and shareholder rights

• These must be tailored for your company type and signed digitally

✅ Step 3: Fill Online Incorporation Forms

Log into the SECP portal and fill out:

• Form 1: Declaration of compliance

• Form 21: Company’s address

• Form 29: Details of directors, CEO, and secretary

• Upload CNICs, utility bills, and other supporting documents

✅ Step 4: Payment of Fee and Submission

• Pay incorporation charges via debit card or bank challan

• Submit all required documents through the SECP eServices platform

• After approval, you will receive:

  • Certificate of Incorporation

  • Digital Signature Certificate (DSC)

  • Company’s Unique Incorporation Number (UIN)

Capital Requirements and SECP Fee Structure

• There is no minimum capital requirement to start

• You can begin with PKR 100,000 to PKR 1,000,000 as authorized capital

• SECP charges vary based on capital:

  • Up to PKR 100,000: ~PKR 1,500

  • PKR 100,001 – 500,000: ~PKR 2,500

  • PKR 500,001 and above: ~PKR 5,000 or more

Post-Incorporation Formalities

Once your company is incorporated, you must complete the following to be fully operational:

📌 National Tax Number (NTN) Registration

• Mandatory for filing returns and making business transactions

• Register online at FBR’s IRIS portal

📌 Sales Tax Registration (if applicable)

• Required if offering taxable services or goods

• Apply via FBR or respective Provincial Revenue Authority (e.g., PRA for Punjab)

📌 Opening a Business Bank Account

• Must use your official company name

• Required documents:

  • Certificate of Incorporation

  • NTN

  • Board Resolution (signed by directors)

📌 Annual Compliance

• File Form A (Annual Return) and audited financial statements

• Submit regular updates for any changes in directors, address, or capital

Taxation of Limited Companies in Pakistan

• Corporate Income Tax Rate: ~29%

• Withholding tax applies on payments to employees, vendors, etc.

• Income Tax and Sales Tax returns must be filed on time to avoid penalties

• SMCs may benefit from reduced tax audit risks if fully compliant

Common Mistakes to Avoid

• Choosing a company name that gets rejected by SECP

• Ignoring annual filing obligations

• Failing to open a business account or get an NTN on time

• Not maintaining records of board meetings and shareholder changes

• Confusing SMC and Pvt Ltd when adding new shareholders

Choosing Between SMC and Pvt Ltd

Final Thoughts

Registering a Limited Company in Pakistan offers structure, scalability, and legal protection. With SECP’s digitized process, registration has become faster and more efficient than ever. However, professional guidance is still essential to ensure error-free filings, correct tax registrations, and long-term compliance.

If you’re ready to launch your business formally and want expert help, firms like Sterling.pk can streamline the process from name reservation to post-incorporation compliance — giving you peace of mind as you focus on growth.