How to register a foreign company in Pakistan?

Registering a foreign company in Pakistan involves several steps and compliance with local regulations. Here’s a general outline of the process:

Eligibility and Approval:

Ensure your foreign company is eligible to operate in Pakistan under the applicable laws and regulations.

Certain sectors may have specific restrictions or requirements, so check with the relevant authorities.

Name Reservation:

Choose a unique name for your company and get it reserved with the Securities and Exchange Commission of Pakistan (SECP). The name should not already be in use by another company in Pakistan.

Documentation:

Prepare the necessary documents, which typically include:

Memorandum and Articles of Association (MAA)

Form 38 (details of directors)

Form 29 (details of registered office)

Passport copies of directors and shareholders

Board resolution approving the establishment of a place of business in Pakistan

Power of attorney (if applicable)

Local Registered Office:

Have a registered office address in Pakistan where official correspondence will be sent.

Registration with SECP:

Submit the required documents to the SECP along with the prescribed fees.

The SECP will review the documents and, if satisfied, will issue a certificate of incorporation.

Tax Registration:

Register your company for tax purposes with the Federal Board of Revenue (FBR) in Pakistan.

Obtain a National Tax Number (NTN) and Sales Tax Registration Number (STRN) if applicable.

Bank Account:

Open a bank account for your company in Pakistan.

Post-Registration Compliance:

Ensure compliance with ongoing requirements such as filing of annual returns, financial statements, and other regulatory filings with the SECP and FBR.

Sector-Specific Approvals:

Depending on the nature of your business, you may need additional approvals or licenses from sector-specific regulatory authorities (e.g., State Bank of Pakistan for financial services).

Legal and Regulatory Compliance:

Comply with all local laws, including labor laws, environmental regulations, and any other applicable statutes.

Local Representation:

Consider appointing a local representative or agent to facilitate communication and compliance with local authorities.

It’s advisable to consult with a local lawyer or a firm specialized in corporate law in Pakistan to guide you through the specifics of registration and compliance based on your company’s circumstances and business activities.