The textile industry is the backbone of Pakistan’s economy, contributing significantly to exports, employment, and GDP. Whether you plan to start a textile manufacturing unit, fabric trading company, clothing brand, or textile export business, your operations must be legally registered and compliant with SECP, FBR, and relevant trade authorities.
This guide outlines the full process for registering a textile company in Pakistan, including company incorporation, tax registration, licensing for exports, and sector-specific compliance.
Step 1: Choose the Right Legal Structure
| Type of Textile Business | Suggested Legal Form |
|---|---|
| Small-scale trading or retail | Sole Proprietorship or AOP |
| Textile manufacturing or export | Private Limited Company |
| Spinning, weaving, or dyeing units | Private or Public Limited Company |
| Garment or apparel brands | Private Limited Company |
Tip: For credibility, export operations, and bank financing, a Private Limited Company is the preferred structure.
Step 2: Reserve Company Name with SECP
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Visit the SECP eServices portal
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Use the “Name Reservation” option
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Choose a name reflecting your textile brand or operations (e.g., “LoomTech Textiles Pvt Ltd”)
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SECP will issue a Name Reservation Certificate, valid for 60 days
Step 3: Incorporate the Company
Log into SECP eServices and complete incorporation using the following documents:
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Name Reservation Certificate
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Memorandum of Association (MOA) – include activities like “manufacturing, trading, export, import, and marketing of textiles, fabrics, yarns, garments”
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Articles of Association (AOA)
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CNICs or passports of directors and shareholders
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Forms 21 and 29 (address and director info)
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Paid-up capital details
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Submission of incorporation fee
Once approved, SECP will issue:
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Certificate of Incorporation
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Company Registration Number (CRN)
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Access to SECP’s online company profile
Step 4: Register with Federal Board of Revenue (FBR)
Go to FBR Iris portal and apply for:
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National Tax Number (NTN)
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Sales Tax Registration Number (STRN) – mandatory if you’re selling or exporting textile goods
Provide:
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SECP incorporation certificate
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MOA and AOA
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Bank account details
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Registered address
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CNICs of directors
FBR will issue a registration certificate showing NTN and STRN.
Step 5: Open a Business Bank Account
Open a corporate bank account under your company name. Required documents include:
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Certificate of Incorporation
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NTN
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Board Resolution for account opening
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MOA, AOA, and Form 29
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CNICs of signatories
Deposit the paid-up capital and start business transactions.
Step 6: Register with the Trade Development Authority of Pakistan (TDAP)
If you plan to export textiles, registration with TDAP is essential.
Steps:
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Apply at www.tdap.gov.pk
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Submit company profile, NTN, SECP documents, and export product list
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TDAP issues a registration certificate used to participate in trade fairs and apply for export incentives
Step 7: Register with Pakistan Single Window (PSW) and WeBOC
For customs clearance and export/import of textile goods:
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Register your company on Pakistan Single Window (PSW)
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Integrate with WeBOC (Web-Based One Customs) system
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Required for textile exporters, importers of machinery, and raw materials
You’ll also need to register with:
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Chamber of Commerce and Industry (mandatory for exporters)
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Pakistan Hosiery Manufacturers Association (PHMA) or APTMA, depending on your sector
Step 8: Register for Utility and Industrial Connections
If establishing a factory or textile unit, apply for:
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Industrial electricity and gas connections with DISCO and SNGPL
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Environmental NOC from EPA
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Labour Department registration for worker welfare
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Social Security (SESSI) and EOBI if hiring more than 5 employees
Step 9: Protect Your Brand Name and Designs
Apply to IPO Pakistan for:
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Trademark registration of your textile brand or logo
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Design registration (for unique fabric patterns or clothing lines)
This provides legal protection against copying or misuse.
Step 10: Fulfill Ongoing Tax and Legal Compliance
| Requirement | Frequency |
|---|---|
| Income Tax Return (FBR) | Annually |
| Sales Tax Return (FBR) | Monthly |
| Withholding Tax Statements | Monthly |
| SECP Annual Return (Form A) | Annually |
| Form 29 (director changes) | As needed |
| Audited Financial Statements (if required) | Annually |
| Trademark Renewal | Every 10 years |
| EOBI/SESSI Contributions | Monthly |
Taxation of Textile Companies
| Tax Type | Applicability |
|---|---|
| Corporate Income Tax | 29% (TY 2025) |
| Sales Tax on Textile Goods | Standard 18% (with some 0% rated exports) |
| Sales Tax on Services (if applicable) | 13%–16% (provincial) |
| Minimum Tax on Turnover (Section 113) | 1.25% |
| Export of Goods | 0% GST + WHT exemptions (under Export Facilitation Scheme) |
| Withholding Tax on Salaries, Contracts, Rent | As per FBR schedule |
Export Incentives and Schemes
Textile companies engaged in export may benefit from:
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Export Facilitation Scheme (EFS 2021) – zero-rating on raw material imports
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Duty Drawback of Taxes (DDT)
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DLTL Scheme – drawback of local taxes and levies
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Export Finance Scheme (EFS) from SBP
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Preferential access to EU and UK under GSP+ status
Conclusion
Registering a textile company in Pakistan involves formal incorporation with SECP, tax registration with FBR, and trade-related licensing through TDAP and customs. Whether you aim to manufacture, export, or sell fashion apparel, home textiles, or fabrics, legal registration and sector compliance ensure smooth business operations and eligibility for government incentives.
By completing all steps—from company setup to brand protection—you can build a successful and export-ready textile business in Pakistan’s globally competitive textile sector.
