To register a company with FBR is a crucial step in establishing a business in Pakistan. The FBR plays a vital role in administering taxation matters and ensuring compliance with tax laws. This blog post aims to provide a step-by-step guide on how to register a company with the FBR in Pakistan, outlining the necessary procedures and requirements.
Step 1: Business Incorporation
Before registering with the FBR, it is essential to incorporate your company under the Companies Act, 2017. This involves the following steps:
- Choose a suitable business structure: Decide on the type of company you want to establish, such as a private limited company, single-member company, or partnership firm.
- Reserve a company name: Select a unique and distinguishable name for your company and apply for name reservation through the online e-services portal of the Securities and Exchange Commission of Pakistan (SECP).
- Prepare incorporation documents: Draft the necessary incorporation documents, including the Memorandum and Articles of Association, Form A, and Form 29.
- Pay registration fees: Calculate the registration fees based on the authorized share capital of the company and pay them to the designated bank.
- Submit documents to the SECP: Compile all the required documents and submit them to the SECP for scrutiny and approval.
Step 2: Obtaining National Tax Number (NTN)
Once your company is incorporated, the next step is to obtain a National Tax Number (NTN) from the FBR. Here’s what you need to do:
- Register on the FBR online portal: Create an account on the FBR Iris portal by providing the necessary details and registering as a taxpayer.
- Complete the registration form: Fill out the registration form, providing accurate information about your company, including its name, address, nature of business, and other relevant details.
- Submit the required documents: Attach the following documents with the registration form:
- Copy of Certificate of Incorporation issued by the SECP
- Copy of Memorandum and Articles of Association
- Copy of CNICs of all directors and authorized representatives
- Bank account details
- Proof of business address
- Verification of documents: The FBR will verify the submitted documents and may request additional information or clarification if needed.
- Attend an interview (if required): In some cases, the FBR may request an interview with the company’s directors or authorized representatives to verify the information provided.
- Issuance of NTN: Once the verification process is complete, the FBR will issue the National Tax Number (NTN) to your company.
Step 3: Registering for Sales Tax (ST)
If your company is engaged in the supply of goods or services, you will also need to register for Sales Tax (ST). Follow these steps to complete the registration:
- Obtain an STRN: To register for Sales Tax, you need to obtain a Sales Tax Registration Number (STRN). This can be obtained by submitting an online application through the FBR Iris portal.
- Provide necessary details: Fill out the application form with accurate details about your business, including turnover, nature of business, and other relevant information.
- Submit supporting documents: Attach the required supporting documents, including a copy of the NTN certificate, bank account details, and proof of business address.
- Verification and approval: The FBR will review your application, verify the documents, and may conduct an interview if necessary. Upon successful verification, your company will be issued an STRN.
Registering a company with the Federal Board of Revenue (FBR) in Pakistan is a
multi-step process that requires careful attention to detail and adherence to the regulatory requirements. By following the steps outlined above, you can ensure a smooth and efficient registration process for your company with the FBR.
It is important to note that registering with the FBR not only brings your company into compliance with tax laws but also enables you to avail various benefits and exemptions provided by the government. It also establishes your credibility as a legitimate business entity.
Once your company is registered with the FBR, it is crucial to fulfill your tax obligations promptly and accurately. This includes filing regular tax returns, maintaining proper accounting records, and complying with other tax-related requirements.
To stay updated with any changes or amendments in tax laws and regulations, it is advisable to regularly visit the FBR’s official website and subscribe to their newsletters or notifications.
In conclusion, registering a company with the Federal Board of Revenue (FBR) in Pakistan is a significant step towards establishing your business and ensuring compliance with tax laws. By carefully following the outlined steps and fulfilling the required documentation and procedures, you can successfully register your company with the FBR and embark on a lawful and prosperous business journey in Pakistan.
Remember, it is always recommended to seek professional advice or consult a tax expert to ensure accurate compliance and a smooth registration process tailored to your specific business needs.