How to Register a Solar Company in Pakistan

How to Register a Solar Company in Pakistan (2025 Step-by-Step Guide)

With rising electricity costs and Pakistan’s urgent need for clean energy, the solar power sector is booming. Whether you’re planning to sell solar panels, offer installation services, or provide net metering solutions — registering your solar company is the first legal step toward operating in this promising industry.

This complete guide explains how to register a solar company in Pakistan, including:

• Company structure and SECP registration

• FBR NTN & sales tax registration

• AEDB (Alternative Energy Development Board) registration

• Net metering license (DISCO approval)

• Banking, invoicing & tax benefits

• FAQs and expert tips

✅ Step 1: Choose the Right Legal Structure

Select the business type that best fits your solar business:

🧠 Pro Tip: For government contracts, tenders, and AEDB registration, Private Limited or SMC is highly preferred.

🏛️ Step 2: Register the Company with SECP

The Securities and Exchange Commission of Pakistan (SECP) is the primary authority for company incorporation.

🔹 Required Documents:

• CNIC of owner/directors

• Company name (check availability)

• Office address

• MOA and AOA mentioning solar energy, installation, net metering, renewable energy

• Paid-up capital details

🔹 Process:

1. Create an account on SECP e-Services

2. Reserve the company name

3. Submit incorporation forms (Form 1, 21, 29)

4. Upload documents & pay the fee

5. Get Incorporation Certificate in 3–5 days

💰 Cost: PKR 2,000–5,000 (Govt fee only)

💼 Step 3: Get NTN and Sales Tax Registration from FBR

To operate legally and issue tax invoices, your company must register with the Federal Board of Revenue (FBR).

🔹 Steps to Register:

1. Visit FBR IRIS Portal

2. Apply for NTN (Income Tax Registration)

3. Apply for Sales Tax Registration (STRN) — required for solar product sales

4. Upload supporting documents (SECP certificate, address, letterhead)

💡 Important: Solar equipment is generally sales tax exempt, but registration is needed to claim exemption and file returns.

☀️ Step 4: Apply for AEDB Registration (Alternative Energy Development Board)

For solar EPC (Engineering, Procurement, Construction) companies, AEDB registration is essential.

🔹 Benefits of AEDB Certification:

• Eligibility to apply for net metering approvals

• Get listed as a certified vendor

• Enhanced trust from clients and government

🔹 AEDB Requirements:

• SECP Incorporation Certificate

• FBR NTN & STRN

• Technical staff CVs

• Office lease/ownership proof

• Sample BOQ/quotations

• Solar experience (if available)

🔹 Application Process:

1. Fill application form at AEDB website

2. Submit required documents

3. Pay the fee (approx. Rs. 25,000–30,000)

4. Get certificate (valid for 1–2 years)

💡 Category A/B/C: Classification depends on your technical capacity, services, and project size.

⚡ Step 5: Register for Net Metering (Optional – If Offering Installation Services)

Net metering allows consumers to sell excess solar power to the grid. If your company offers this service, you must:

• Be AEDB-certified

• Apply to respective DISCOs (e.g., LESCO, IESCO, K-Electric, etc.)

Each DISCO has its own net metering registration process. You’ll apply on behalf of your clients as an authorized vendor.

💳 Step 6: Open a Business Bank Account

You’ll need a business account to:

• Receive local and international payments

• Comply with tax laws

• Handle imports (solar panels, inverters)

Required:

• SECP Certificate

• NTN Certificate

• Board Resolution

• Letterhead, stamp, and office documents

💡 Other Optional Registrations

📊 Tax Benefits for Solar Companies in Pakistan

• 0% customs duty and sales tax on solar panels and inverters (as per SROs)

• Exemption available for registered companies via proper channels

• Net metering clients receive bill credits from DISCOs

✅ Always consult a tax expert to claim exemptions legally and timely file returns.

📄 Sample MOA Activities for a Solar Company

Include the following terms when drafting the Memorandum of Association:

• Supply, installation, and maintenance of solar energy systems

• Import/export of renewable energy equipment

• Designing and executing solar EPC projects

• Consultancy and feasibility studies for solar systems

❓ Frequently Asked Questions (FAQs)

Q1: Do I need AEDB registration to start a solar company?

No, but if you want to offer net metering or appear on the AEDB-approved vendor list, it’s mandatory.

Q2: Can I start a solar business as a sole proprietor?

Yes. Many small vendors begin this way. However, Pvt Ltd or SMC is more credible and preferred by clients and banks.

Q3: Is solar business profitable in Pakistan?

Absolutely. With rising demand, lower hardware costs, and government net metering support — solar is one of Pakistan’s most promising sectors.

Q4: Do I need a license to sell solar panels?

No license is required to sell, but importing, installing, or offering net metering requires specific certifications (AEDB, WEBOC, DISCO approval).

Q5: How long does AEDB registration take?

Usually 3–4 weeks after complete document submission and verification.

📢 Final Thoughts

Starting a solar company in Pakistan is not just profitable — it contributes to a greener, more energy-secure future. Whether you’re targeting residential, commercial, or industrial clients, legal registration builds trust and unlocks growth opportunities.

From SECP to AEDB, every step adds legitimacy and long-term value to your business.

🧑‍💼 Need Help Registering Your Solar Company?

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