How to incorporate a company in Pakistan

Incorporating a company in Pakistan is the first step toward establishing a formal business entity recognized by law. Company incorporation not only provides credibility and legal recognition but also allows businesses to open corporate bank accounts, enter into contracts, raise capital, and enjoy tax benefits. In Pakistan, the process of company registration is governed by the Companies Act, 2017 and regulated by the Securities and Exchange Commission of Pakistan (SECP). This comprehensive guide outlines the step-by-step procedure, requirements, and benefits of incorporating a company in Pakistan.

Types of Companies You Can Register in Pakistan

The SECP allows the incorporation of several types of companies depending on your business objectives and ownership structure:

• Private Limited Company (Ltd) – Most common structure for startups and SMEs

• Single Member Company (SMC) – For individuals wanting sole ownership with limited liability

• Public Limited Company (Listed/Unlisted) – For larger businesses and IPOs

• Non-Profit Association (Section 42 Company) – For charitable or social welfare organizations

• Foreign Company – Branch or liaison office of a foreign entity

Legal Framework for Company Incorporation

• Companies Act, 2017

• SECP Rules and Regulations

• Companies (Incorporation) Regulations, 2017

• Name Reservation and Incorporation Guidelines (Updated 2024)

Step-by-Step Process to Incorporate a Company in Pakistan

Step 1: Decide on the Type and Structure of the Company

Choose the appropriate type based on ownership, liability, and future business needs:

• SMC – Single shareholder

• Private Limited – Minimum 2 and maximum 50 shareholders

• Public Limited – Minimum 3 shareholders, no limit on maximum

• Decide between shareholding structure (equity-based) or guarantee-based (for NPOs)

Step 2: Reserve the Company Name with SECP

• Visit the SECP’s eServices portal at https://eservices.secp.gov.pk

• Log in and choose “Name Reservation (Fast Track)”

• Provide three name options in order of preference

• The name should not be:

  • Similar to existing companies

  • Offensive or misleading

  • Contain restricted words (Bank, NGO, Trust, etc. without approval)

• Pay PKR 200 name reservation fee via credit card, mobile wallet, or bank

Step 3: Prepare the Incorporation Documents

After name approval, prepare the following documents:

• Memorandum of Association (MoA) – Outlines the company’s objectives

• Articles of Association (AoA) – Governs internal management and operations

• Form II (Particulars of Directors)

• Form III (Consent to Act as Director)

• CNICs/NICOPs/Passports of directors and shareholders

• Address proof (utility bill or tenancy agreement)

• Form 48 (declaration of compliance)

Note: For SMC, a simplified format of AoA and MoA is provided by SECP

Step 4: Submit the Incorporation Application Online

• Log in to the SECP eServices portal

• Choose “Incorporation of Company”

• Upload all required forms and scanned documents

• Pay the incorporation fee, which varies based on:

  • Authorized capital (starting from PKR 1,800 for PKR 100,000 capital)

  • Type of company

• Choose Digital Signature and Company Seal Issuance option if required

Step 5: Obtain Digital Signatures

SECP now issues digital signatures through NIFT (National Institutional Facilitation Technologies)

• Apply online via SECP or NIFT portal

• Required for submitting and signing eForms

• Valid for 1–2 years

• Physical biometric verification may be needed

Step 6: Certificate of Incorporation Issuance

Once all documents are approved:

• SECP issues Certificate of Incorporation

• Includes: Company name, registration number, date of incorporation

• Can be downloaded directly from SECP eServices

Step 7: Post-Incorporation Registrations and Requirements

1. National Tax Number (NTN)

• Register on FBR’s IRIS portal at https://iris.fbr.gov.pk

• Required to file taxes, hire employees, or open bank accounts

• Upload incorporation certificate, CNICs, tenancy agreement

2. Sales Tax Registration (STRN)

• Mandatory if your company deals in goods or taxable services

• File separately with FBR or provincial tax authorities (PRA, SRB, KPRA, BRA)

3. Bank Account Opening

• Use incorporation certificate, NTN, board resolution, and AoA/MoA

• Choose a reputable commercial bank

• Required for business transactions and capital inflow

4. Business Address and Lease Agreement

• Maintain a verifiable physical address

• Submit rent agreement or ownership documents to FBR and SECP

5. Labor and Employment Registrations

• EOBI Registration (for employee pensions)

• Social Security Registration (province-specific)

• Professional Tax in applicable provinces

Timeline for Incorporation

Fees for Incorporation (Private Limited Company)

Benefits of Company Incorporation in Pakistan

• Limited Liability for shareholders

• Legal recognition under Pakistani law

• Access to corporate financing and investment

• Eligibility for government tenders and export licenses

• Continuity of business even after changes in ownership

• Facilitates foreign investment and joint ventures

Common Mistakes to Avoid During Incorporation

• Choosing a name already registered or reserved

• Errors in MoA or AoA clauses

• Not uploading attested documents

• Using incorrect NIC/Passport numbers

• Skipping digital signature application

• Using residential address not permitted for commercial activity

Foreign Company Incorporation in Pakistan

Foreign investors can register a Branch Office, Liaison Office, or Foreign Subsidiary:

• File application with BOI (Board of Investment)

• Seek approval from SECP after security clearance

• Comply with Foreign Exchange Regulations (SBP)

• Repatriation of profit allowed under specific conditions

Incorporating an NGO (Section 42 Company)

• File under Section 42 of the Companies Act, 2017

• Submit license application to SECP with objectives and sources of funding

• Additional scrutiny from Interior Ministry and Economic Affairs Division

• Must maintain separate audit reports and tax returns

How Sterling.pk Helps with Company Incorporation

At Sterling.pk, we provide end-to-end company registration services, including:

• Name availability and legal advice

• Drafting of Memorandum and Articles

• Online SECP portal handling

• NTN, Sales Tax, EOBI registration

• Post-incorporation compliance (Form A, Form 29)

• Business bank account facilitation

• Trademark and intellectual property protection

Conclusion

Company incorporation in Pakistan is now more streamlined than ever, thanks to SECP’s online eServices platform and simplified procedures. Whether you are a startup founder, SME owner, or foreign investor, forming a registered company offers a solid legal foundation, enhances business credibility, and unlocks growth opportunities. By understanding the regulatory framework and following the proper steps—or by working with experts like Sterling.pk—you can ensure a smooth incorporation process and position your business for long-term success.