How long does it take to register a business in Pakistan?

Registering a business in Pakistan is an essential first step for entrepreneurs and organizations aiming to enter the formal economy. The process is overseen primarily by the Securities and Exchange Commission of Pakistan (SECP) and involves several stages such as name reservation, submission of incorporation documents, verification, and issuance of the certificate of incorporation. The time it takes to register a business in Pakistan depends on the business structure, the accuracy of the documents submitted, and whether standard or expedited services are used.

Overview of Business Structures in Pakistan

Before we explore the timeline, it is important to understand the types of businesses that can be registered in Pakistan. The form of business selected can influence the registration time.

• Sole Proprietorship

• Partnership Firm

• Private Limited Company

• Single Member Company (SMC)

• Public Limited Company

• Limited Liability Partnership (LLP)

• Foreign Company Branch or Liaison Office

Each of these business types has a slightly different registration procedure and time requirement.

Registration Authorities in Pakistan

The two main authorities responsible for business registration are:

• SECP – for companies (private limited, SMC, public limited, etc.)

• Registrar of Firms (under the respective provincial government) – for partnership firms

• FBR (Federal Board of Revenue) – for National Tax Number (NTN) registration for all business types

Additional authorities like PSEB, PEC, or Chamber of Commerce may also be involved, depending on the sector.

Standard Registration Timeline via SECP

Under typical circumstances, registering a company through the SECP takes 3 to 7 working days. This includes:

1. Name Reservation – 1 to 2 working days

2. Document Submission and Verification – 2 to 4 working days

3. Issuance of Certificate of Incorporation – 1 working day

If everything is correctly filled and submitted with complete supporting documents, the process can be finished on the shorter end of this timeframe.

Fast Track Registration Services (FTRS)

For businesses in a hurry, SECP offers the Fast Track Registration Services (FTRS). Through FTRS:

• Company registration can be completed in 4 hours

• Applicable only to Private Limited Companies and SMCs

• All documents must be correctly prepared and submitted via the SECP’s eServices portal

• A higher processing fee is charged

FTRS is ideal for time-sensitive business launches or startups preparing for urgent contractual obligations.

Timeline for Sole Proprietorship Registration

Sole proprietorships are the easiest and fastest to register. The process involves:

• Registering with FBR for NTN

• Optional: Business name registration with Chamber of Commerce or Trade License

The typical time required is 1 to 2 working days if documents like CNIC, electricity bill, and business address verification are complete.

Timeline for Partnership Firm Registration

To register a partnership:

• Documents are submitted to the Registrar of Firms in the relevant district

• The process takes around 5 to 7 working days

Steps include:

1. Drafting the Partnership Deed

2. Filing Form I

3. Paying the registration fee via bank challan

4. Receiving the Certificate of Registration

NTN registration must also be done separately with the FBR after this process.

Timeline for Public Limited Company Registration

Public limited companies (especially listed ones) take longer to register due to:

• Additional document requirements

• Higher scrutiny by SECP

• Requirement of at least 3 directors

• Drafting and vetting of Memorandum and Articles of Association

The entire process usually takes 10 to 15 working days depending on the complexity of the business and readiness of legal documentation.

Timeline for Branch or Liaison Office of a Foreign Company

Foreign companies looking to establish a branch or liaison office in Pakistan must apply through the Board of Investment (BOI). The process includes:

1. Submission of application via BOI portal

2. Clearance from the Ministry of Interior

3. Final approval and registration

The entire process can take 4 to 8 weeks, depending on the case and sector. After BOI approval, the entity must register with the SECP as a foreign company.

Factors Affecting Registration Timeline

Several variables can impact how long it takes to register a business:

Completeness of Documentation

• Incorrect or missing documents delay the process significantly

• SECP returns incomplete applications for correction

Choice Between Online and Offline Registration

• Online registration via SECP’s eServices portal is faster

• Offline submissions take longer due to manual processing and courier delays

Type of Business Entity

• Private limited and SMCs are fastest among companies

• Public companies and foreign entities take more time

SECP or Registrar Workload

• Backlogs or public holidays can cause unexpected delays

• End of fiscal quarters (March and June) are peak periods for SECP

Name Availability

• Name rejection leads to additional delays

• Businesses are encouraged to check name availability using the Company Name Search Facility on SECP’s website

Use of Professional Help

• Using a consultant or firm like Sterling.pk ensures faster preparation of documents

• Reduces chances of rejection or objection

Step-by-Step Breakdown of Private Limited Company Registration

1. Name Reservation
   Submit name request through SECP’s eServices. Approval is usually given within 24 hours.

2. Preparation of Documents
   Includes CNICs, Memorandum of Association, Articles of Association, Form 1, Form 21, and Form 29.

3. Payment of Fee
   Fees are paid online or via bank challan and submitted through the SECP portal.

4. Submission through eServices Portal
   Once submitted, SECP reviews and responds within 2 to 4 working days.

5. Certificate of Incorporation Issued
   If approved, the certificate is digitally issued.

6. Post-Incorporation Steps
   Get NTN from FBR, register with PSEB (if IT company), open a bank account, and apply for licenses.

Estimated Time for Post-Incorporation Formalities

• NTN Registration – 1 to 2 working days

• Sales Tax Registration (if applicable) – 3 to 5 working days

• Chamber of Commerce membership – 3 to 7 working days

• Bank Account Opening – 2 to 5 working days depending on bank policy

Tips to Speed Up the Process

• Prepare documents in advance

• Double-check SECP formats

• Consult professionals like Sterling.pk for legal vetting

• Submit through online channels

• Opt for FTRS if urgent

• Pay fees digitally for quicker acknowledgment

Common Mistakes That Cause Delays

• Submitting handwritten or outdated forms

• Not translating foreign documents

• Using a company name that violates SECP guidelines

• Missing signatures or CNIC copies

• Submitting low-resolution scanned documents

Advantages of Registering Through Professionals

• Accurate document preparation

• Timely submission

• Reduced risk of rejection

• Expert advice on choosing the best structure

• Help with post-incorporation tasks like NTN, GST, payroll setup, etc.

At Sterling.pk, we have assisted hundreds of businesses across Pakistan in registering their operations successfully and swiftly.

Conclusion

The time it takes to register a business in Pakistan varies significantly depending on the type of business, the method of application, and how prepared the applicant is. A sole proprietorship can be registered in 1 to 2 days, while a private limited company generally takes 3 to 7 days under standard processing or just 4 hours with FTRS. Public limited and foreign companies can take several weeks due to added compliance requirements.

By understanding the full process and ensuring the correct documentation is ready from the start, businesses can save time and avoid costly delays. Engaging experienced professionals like Sterling.pk can ensure a smooth registration experience, allowing founders to focus on building and growing their enterprise.