How to register a startup company in Pakistan?
If you have a great idea for a new business and want to launch it in Pakistan, you will need to register your startup company with the relevant authorities. Registering a startup company in Pakistan is not very difficult, but it does require some steps and documents that you should be aware of. In this blog post, we will guide you through the process of registering a startup company in Pakistan and answer some common questions that you may have.
Step 1: Choose a name for your startup company
The first step is to choose a name for your startup company that is unique, catchy and reflects your business idea. You can check the availability of your desired name on the website of the Securities and Exchange Commission of Pakistan (SECP), which is the regulatory body for all companies in Pakistan. You can also reserve your name online for a fee of Rs. 200.
Step 2: Select a company structure
The next step is to select a company structure that suits your business needs and goals. There are different types of company structures in Pakistan, such as sole proprietorship, partnership, private limited company, public limited company, single member company and foreign company. Each type has its own advantages and disadvantages, as well as legal and tax implications. You should consult a lawyer or an accountant to help you decide which type of company structure is best for your startup.
Step 3: Prepare and submit the required documents
Once you have selected a company structure, you will need to prepare and submit the required documents to the SECP for registration. The documents may vary depending on the type of company structure you have chosen, but generally they include:
– Form 1: Declaration of compliance with the requirements of the Companies Act 2017
– Form 21: Notice of situation of registered office
– Form 29: Particulars of directors and officers
– Memorandum of Association: A document that outlines the main objectives and activities of your company
– Articles of Association: A document that defines the rules and regulations for the management and operation of your company
– Copies of CNICs or passports of directors and shareholders
– Fee challan: A receipt of payment of registration fee
You can submit these documents online through the SECP’s eServices portal or in person at the nearest Company Registration Office (CRO). The registration fee depends on the authorized capital of your company and ranges from Rs. 500 to Rs. 20,000.
Step 4: Obtain a digital signature
After submitting the documents, you will need to obtain a digital signature from the National Institutional Facilitation Technologies (NIFT), which is an authorized agency for issuing digital signatures in Pakistan. A digital signature is a secure way of authenticating your identity online and signing electronic documents. You will need a digital signature to file annual returns and other statutory forms with the SECP. You can apply for a digital signature online through the NIFT’s website or in person at their offices. The fee for obtaining a digital signature is Rs. 1,500 per year.
Step 5: Get a National Tax Number (NTN) and Sales Tax Registration Number (STRN)
The final step is to get a National Tax Number (NTN) and a Sales Tax Registration Number (STRN) from the Federal Board of Revenue (FBR), which is the tax authority in Pakistan. An NTN is a unique identification number that is required for filing income tax returns and paying income tax. An STRN is a unique identification number that is required for collecting and paying sales tax on goods and services. You can apply for an NTN and an STRN online through the FBR’s eFBR portal or in person at the nearest Regional Tax Office (RTO). The fee for obtaining an NTN and an STRN is Rs. 100 each.