How to register a startup company in Pakistan?

Starting a new business in Pakistan is an exciting yet complex journey. For startups, choosing the right legal structure and completing the registration process is the foundation for growth, funding, and legal protection. The Securities and Exchange Commission of Pakistan (SECP), in coordination with other government bodies, has streamlined the company registration process to support entrepreneurship and innovation. This comprehensive guide explains how to register a startup company in Pakistan, covering legal structures, documentation, procedures, and post-registration compliance.

Understanding a Startup in the Pakistani Context
A startup is generally a new business venture focused on innovation, scalability, and rapid growth, often using technology. In Pakistan, startups are typically registered as:

• Private Limited Company (Pvt. Ltd.)

• Single Member Company (SMC)

• Sole Proprietorship (for early-stage solo entrepreneurs)

For legal protection, investor attraction, and long-term scaling, a Private Limited Company is the most recommended legal structure.

Step-by-Step Guide to Register a Startup Company in Pakistan

Step 1: Name Reservation on SECP e-Services
The first step in registering your startup is reserving a unique company name:

• Visit the SECP eServices portal

• Create an account

• Apply for name reservation (Form 1)

• Choose a name that:

  • Is not misleading or similar to an existing company

  • Does not include prohibited words (e.g., federal, national, Islamic)

  • Ends with “(Private) Limited” or “(SMC-Private) Limited”

Name approval usually takes 1–2 working days.

Step 2: Prepare Required Documents
Once the name is approved, gather the following:

• Copies of CNICs or NICOPs of directors and shareholders

• Registered address of the business

• Memorandum of Association (MOA) – defines business objectives

• Articles of Association (AOA) – outlines company rules and governance

• Form 21 – registered office address

• Form 29 – details of directors, CEO, and company secretary

• Form 1 – declaration of compliance

Step 3: Company Incorporation with SECP
Log into SECP eServices:

• Select “Incorporation of a Company”

• Upload the signed incorporation documents

• Pay the registration fee via bank challan or online payment

• Submit the application for processing

The SECP reviews the documents and typically issues a Certificate of Incorporation within 3–5 working days.

Step 4: Obtain National Tax Number (NTN) from FBR
Once your startup is registered with SECP, you must apply for an NTN (National Tax Number) with the Federal Board of Revenue (FBR):

• Visit FBR’s IRIS portal

• Create a profile and login

• Submit online NTN registration form with:

  • SECP registration details

  • CNICs of directors

  • Address and contact info

NTN is required for filing taxes, opening a bank account, and entering into contracts.

Step 5: Open a Business Bank Account
To operate legally, a startup must open a corporate bank account using:

• Certificate of Incorporation

• SECP Forms (21, 29)

• NTN

• Board Resolution (if required by the bank)

• Copies of CNICs/NICOPs of directors

Step 6: Sales Tax Registration (if applicable)
If your startup sells taxable goods or provides services, you must obtain a Sales Tax Registration Number (STRN):

• Register through the FBR portal

• Submit business and bank details

• STRN enables the filing of monthly sales tax returns and issuance of tax invoices

Step 7: Optional – Register with PSEB for IT Startups
For tech startups offering software or IT-enabled services, registration with the Pakistan Software Export Board (PSEB) offers benefits:

• 100% income tax exemption on IT exports (till June 2026)

• Access to government incentives

• Recognition for international tenders

Step 8: Enroll with Provincial Authorities (if needed)
Depending on the nature of the business, you may also need to register with:

• Punjab Revenue Authority (PRA)

• Sindh Revenue Board (SRB)

• Balochistan Revenue Authority (BRA)

• Khyber Pakhtunkhwa Revenue Authority (KPRA)

This applies mostly to service startups operating in a specific province.

Step 9: Register with Social Security and EOBI (for employers)
If your startup employs workers, you must register with:

• Employees Old-Age Benefits Institution (EOBI)

• Provincial Social Security Institution

• Labour Department (if employing more than 10 people)

This ensures compliance with labor laws and enables employee benefits.

Step 10: Comply with Post-Incorporation SECP Requirements
After registration, your startup must fulfill ongoing obligations:

• File Form A (Annual Return) each year

• File Form 29 for any change in directors or officers

• Maintain financial records and get accounts audited (if applicable)

• Hold board meetings and record minutes

• Renew digital signatures if using eServices

Cost of Registering a Startup Company in Pakistan

Timeframe for Startup Registration

• SECP Name Approval: 1–2 working days

• Company Incorporation: 3–5 working days

• NTN Issuance: 1–2 days

• Bank Account Opening: 2–4 working days

• Sales Tax & PSEB: 5–10 working days

Benefits of Registering a Startup

• Legal recognition and credibility

• Limited liability protection

• Access to investor funding

• Ease of doing business with clients and vendors

• Eligibility for government grants and tax incentives

• Participation in startup accelerators and incubators

Tax Implications for Registered Startups

• Subject to Corporate Income Tax (29%)

• May qualify as Small Company (20%) if turnover < PKR 250 million

• Eligible for tax credit under Sections 65B, 65D, and 65E

• IT Startups: 100% tax exemption on export income till 2026 (subject to PSEB registration)

Startup Grants and Incentives in Pakistan

• Ignite National Technology Fund: Grants for tech innovation

• Kamyab Jawan Program: Soft loans for youth-led businesses

• State Bank of Pakistan (SBP) Refinance Scheme: Low-cost financing

• Startup Pakistan Program: Training, mentorship, funding access

• Tax incentives for women-led businesses and freelancers

Challenges Faced by Startups During Registration

• Lack of awareness of digital portals (SECP, FBR)

• Documentation hurdles for foreigners or overseas Pakistanis

• Delays in digital signature issuance

• Limited access to startup-friendly bank account options

• Difficulty navigating tax compliance without professional help

Pro Tips for Successful Startup Registration

• Use SECP’s fast-track eServices portal

• Hire a registered intermediary or consultant

• Choose a scalable legal structure (Pvt. Ltd. preferred for investors)

• Maintain digital records for audit and tax filing

• Stay updated with SECP Circulars and FBR SROs

Conclusion
Registering a startup company in Pakistan has become faster and more efficient with SECP’s digital reforms. By selecting the right legal structure, submitting accurate documentation, and fulfilling post-registration obligations, you can establish a compliant and credible business foundation. Whether you’re launching a tech solution, an e-commerce venture, or a service-based startup, proper company registration is your gateway to sustainable growth, funding opportunities, and long-term success.