Registering a company in Pakistan is now easier thanks to SECP’s digital eServices portal. Yet, many startups and entrepreneurs still make avoidable mistakes that delay the process, lead to rejections, or create compliance burdens after incorporation. This article highlights the most common errors made during company registration in Pakistan and how to avoid them.
1. Selecting a Prohibited or Confusing Name
SECP has strict naming rules. Names containing words like “Authority,” “Federal,” “Bank,” “Board,” “Pakistan,” or similar to existing companies are often rejected.
Tip: Use SECP’s eServices portal to check name availability and avoid restricted terms unless you have special approval or NOC.
2. Submitting Incomplete or Inaccurate Forms
Errors in Form-I, Form-21, or Form-29—such as typos, missing CNIC numbers, or wrong addresses—lead to rejections.
Tip: Double-check all data. Have a consultant or expert review your forms before submission.
3. Not Preparing MOA and AOA Properly
Using generic Memorandum and Articles of Association (MOA/AOA) without aligning them with your actual business activities can limit future operations.
Tip: Customize your MOA with your intended business objects. Don’t just copy templates blindly.
4. Not Obtaining Digital Signatures in Advance
SECP requires digital signatures (PKI tokens) for online submissions. Many applicants forget to apply for them, causing delays.
Tip: Apply for PKI tokens early through NIFT or SECP-authorized vendors.
5. Incorrect Use of Suffixes in Company Name
Adding the wrong suffix (e.g., using “Ltd” instead of “(Pvt) Ltd” for a private company) leads to rejection.
Tip: Use “(Pvt) Ltd” for Private Limited, “(SMC-Pvt) Ltd” for Single Member Company, and “Ltd” for Public Limited.
6. Using CNICs or Passports That Are Unclear or Expired
SECP will reject scanned identity documents that are blurred, expired, or don’t match form details.
Tip: Ensure high-quality scans and that all identity documents are valid and correctly spelled.
7. Not Declaring Nominee in Single Member Company (SMC)
For SMCs, it’s mandatory to appoint a nominee who will manage the company if the single director dies.
Tip: Add nominee’s CNIC and signed consent letter with your SMC application.
8. Not Filing Form-29 for Director Appointments
Many founders assume incorporation is complete without submitting Form-29 to appoint directors.
Tip: Form-29 must be submitted immediately after incorporation to notify SECP of company officers.
9. Ignoring Tax Registration Post-Incorporation
Without an NTN from FBR, your company can’t open a bank account or file taxes.
Tip: After SECP approval, apply for NTN and STRN on FBR’s IRIS system within the first week.
10. Not Opening a Bank Account Promptly
Without a corporate bank account, you can’t receive capital, foreign remittances, or pay vendors properly.
Tip: Open the account using your Certificate of Incorporation, NTN, MOA/AOA, and board resolution.
11. No Understanding of Annual SECP Compliance
Many new companies ignore annual filings like Form A, Form 29 updates, and financial statements.
Tip: Maintain a compliance calendar and work with professionals to ensure you meet deadlines.
12. Registering with Incomplete Share Capital Information
Failing to clearly define paid-up and authorized capital causes confusion and may require post-incorporation amendments.
Tip: Clearly state capital structure in Form-I and MOA. Ensure the declared capital matches your business plan.
13. Not Hiring a Consultant When Needed
SECP processes may seem easy, but errors can lead to time loss and regulatory issues.
Tip: Work with a corporate consultant like Sterling.pk to avoid costly mistakes.
14. Not Understanding the Tax Regime
Registering a company without understanding its tax obligations under FBR, PRA, or SRB can lead to fines and penalties.
Tip: Know your sector-specific tax rules, exemptions, and obligations before starting operations.
15. No Clear Registered Office Address
Providing temporary or incomplete addresses results in communication lapses with SECP and FBR.
Tip: Use a valid, physical address for your company. Update SECP through Form-21 if it changes.
Conclusion
Avoiding these common mistakes will save you time, money, and legal hassle when registering your company in Pakistan. From name reservation to tax registration and post-incorporation compliance, every step matters. By planning ahead, verifying documents, and consulting experts, you can register smoothly and start your business on a strong legal foundation.
At Sterling.pk, we help entrepreneurs, startups, and SMEs register their companies correctly—without errors, delays, or hidden compliance issues.
