Registering a business in Pakistan is a critical step for entrepreneurs aiming to establish a legal and recognized entity. Understanding the associated fees is essential for budgeting and ensuring compliance with regulatory requirements. This article provides a detailed overview of the business registration fees in Pakistan, covering various business structures and the relevant authorities involved.
Regulatory Authorities Involved in Business Registration
In Pakistan, several regulatory bodies oversee the registration and regulation of businesses:
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Securities and Exchange Commission of Pakistan (SECP): Responsible for the incorporation and regulation of companies.
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Federal Board of Revenue (FBR): Handles tax registrations, including the issuance of National Tax Numbers (NTNs).
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Provincial Registrars of Firms: Manage the registration of partnerships and sole proprietorships at the provincial level.
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Intellectual Property Organization of Pakistan (IPO-Pakistan): Oversees trademark and intellectual property registrations.
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Local Government Authorities: Issue trade licenses and other local permits.
Sole Proprietorship
A sole proprietorship is the simplest form of business, owned and operated by a single individual.
Registration Fees
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FBR NTN Registration: Free of charge.
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Chamber of Commerce Membership: Optional; fees vary by chamber but typically range from PKR 3,000 to PKR 10,000 annually.
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Trade License: Issued by local authorities; fees vary depending on the municipality and nature of the business.
Partnership Firm
A partnership involves two or more individuals sharing profits and liabilities.
Registration Fees
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Registrar of Firms: Approximately PKR 1,000 to PKR 5,000, depending on the province.
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Stamp Duty: Varies based on the capital contribution; consult local authorities for exact rates.
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Chamber of Commerce Membership: Optional; fees similar to those for sole proprietorships.
Private Limited Company
A private limited company is a separate legal entity with limited liability for its shareholders.
SECP Registration Fees (Effective April 21, 2025)
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Name Reservation Fee: PKR 1,000.
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Incorporation Fee: Based on authorized capital:
Authorized Capital (PKR) Online Filing Fee (PKR) Offline Filing Fee (PKR) Up to 100,000 5,500 10,000 For every additional 100,000 up to 5 billion 770 per 100,000 770 per 100,000 For every additional 100,000 above 5 billion 165 per 100,000 165 per 100,000 -
Digital Signature Certificate: PKR 1,500 to PKR 2,000.
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FBR NTN Registration: Free of charge.
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Chamber of Commerce Membership: Optional; fees vary.
Single Member Company (SMC)
An SMC is a private limited company with only one shareholder.
Registration Fees
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Same as those for private limited companies.
Public Limited Company
A public limited company can offer its shares to the general public.
SECP Registration Fees
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Name Reservation Fee: PKR 1,000.
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Incorporation Fee: Based on authorized capital; generally higher than private companies.
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Prospectus Approval Fee: Varies; consult SECP for details.
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Digital Signature Certificate: PKR 1,500 to PKR 2,000.
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FBR NTN Registration: Free of charge.
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Chamber of Commerce Membership: Optional; fees vary.
Limited Liability Partnership (LLP)
An LLP combines elements of partnerships and companies, offering limited liability to its partners.
SECP Registration Fees
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Name Reservation Fee: PKR 1,000.
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Incorporation Fee: Based on contribution amount; consult SECP for exact rates.
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Digital Signature Certificate: PKR 1,500 to PKR 2,000.
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FBR NTN Registration: Free of charge.
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Chamber of Commerce Membership: Optional; fees vary.
Non-Profit Organization (Section 42 Company)
These are companies formed for promoting commerce, art, science, religion, charity, or any other useful object.
SECP Registration Fees
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Name Reservation Fee: PKR 1,000.
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License Fee: PKR 150,000.
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Incorporation Fee: PKR 27,500 (online), PKR 55,000 (offline).
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Digital Signature Certificate: PKR 1,500 to PKR 2,000.
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FBR NTN Registration: Free of charge.
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Chamber of Commerce Membership: Optional.
Foreign Company Registration
Foreign companies can register and operate in Pakistan by setting up a liaison office, branch office, or a locally incorporated subsidiary.
SECP Registration Fees
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Filing Charter/Memorandum: PKR 11,000 (electronic submission), PKR 22,000 (manual submission).
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Other Fees: Vary based on the nature of the business and the documents submitted.
Additional Costs to Consider
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Professional Fees: Engaging consultants or lawyers can cost between PKR 10,000 to PKR 50,000, depending on the complexity of the registration.
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Stamp Duty: Applicable on certain documents; rates vary by province.
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Publication Fees: For public companies, publishing notices in newspapers may be required.
Annual Compliance Fees
After registration, businesses must comply with annual requirements, which may involve additional fees:
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SECP Annual Return Filing: Fees vary based on the company’s authorized capital.
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FBR Tax Return Filing: No direct fee, but professional assistance may cost between PKR 15,000 to PKR 100,000 annually.
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Audit Fees: Vary depending on the audit firm and company size; small companies may pay between PKR 25,000 to PKR 100,000, while larger enterprises may incur higher costs.
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Professional Tax: Levied by provincial tax authorities; amounts vary by province and business size.
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Chamber of Commerce Membership Renewal: Optional; fees range from PKR 7,000 to PKR 15,000 annually.
Conclusion
Understanding the various fees associated with business registration in Pakistan is essential for entrepreneurs and business owners. While some costs are fixed, others vary depending on the type of business entity, authorized capital, and services required. It’s advisable to consult with professionals or the respective regulatory bodies to get accurate and up-to-date information tailored to your specific business needs.
