The automobile industry in Pakistan includes a wide range of business activities—from car dealerships and spare parts trading to vehicle manufacturing, assembly, and import. Whether you’re starting a vehicle sales business, launching an EV startup, or planning to assemble or manufacture cars locally, you must comply with the legal framework set by the Securities and Exchange Commission of Pakistan (SECP), Federal Board of Revenue (FBR), and relevant government ministries like the Ministry of Industries and Production.
This guide outlines the step-by-step process for registering an automobile company in Pakistan, including incorporation, tax registration, licensing, and sector-specific requirements.
Step 1: Choose the Right Legal Structure
| Business Type | Recommended Legal Form |
|---|---|
| Car dealership or trading company | Private Limited Company |
| Auto spare parts importer/exporter | Private Limited Company |
| Vehicle manufacturing or assembly | Private Limited or Public Company |
| Electric vehicle (EV) startup | Private Limited (can scale to Public) |
Note: A Private Limited Company (Pvt Ltd) offers limited liability, credibility, and easier access to financing.
Step 2: Name Reservation 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 unique name reflecting your business (e.g., “AutoTech Motors Pvt Ltd”)
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Avoid prohibited or misleading terms (e.g., “government”, “bank”, etc.)
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SECP will issue a Name Reservation Certificate, valid for 60 days
Step 3: Incorporation of the Company
Log into the SECP portal and apply for company incorporation.
Documents Required:
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Name reservation certificate
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Memorandum of Association (MOA) – define business activities (e.g., “Import, sale, manufacturing and trading of automobiles and related accessories”)
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Articles of Association (AOA) – define internal rules
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CNICs or passports of directors and shareholders
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Registered office address
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Consent of CEO and directors
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Form 21 (registered office) and Form 29 (directors)
Post-Submission:
You will receive a Certificate of Incorporation from SECP, along with a unique Company Incorporation Number.
Step 4: Obtain National Tax Number (NTN) from FBR
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Visit FBR Iris portal
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Register the company using the Company Registration Number (CRN) provided by SECP
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Enter business activity, office address, bank details
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FBR will issue a National Tax Number (NTN) and update it in Iris
If you are importing, selling goods, or manufacturing, apply for:
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Sales Tax Registration Number (STRN) from FBR
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Customs Registration (WeBOC ID) for importers/manufacturers
Step 5: Sector-Specific Licensing (If Applicable)
If your automobile company plans to assemble or manufacture vehicles locally, you must apply for sector-specific approval under Auto Industry Development and Export Policy (AIDEP) 2021–2026.
Apply to the Engineering Development Board (EDB) with:
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Business profile
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Feasibility report
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Technical production capacity
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Details of assembly/manufacturing plant
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CNICs of directors
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Environmental NOC
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Company incorporation documents
If approved, EDB will issue:
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Greenfield or Brownfield status certificate
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Access to tax incentives, lower customs duty, and R&D benefits
For importers and dealers of automobiles:
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Apply for Import Authorization from Ministry of Commerce, if needed
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Register in WeBOC system for customs clearance
Step 6: Register with Provincial Revenue Authority (If Providing Services)
If your company provides services such as:
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Automobile repair and maintenance
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Vehicle detailing
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Car leasing or rental services
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Insurance brokerage related to vehicles
You must register for Sales Tax on Services with:
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PRA (Punjab)
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SRB (Sindh)
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KPRA (KPK)
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BRA (Balochistan)
File monthly sales tax returns and issue tax invoices for service-based transactions.
Step 7: Open a Corporate Bank Account
Visit any scheduled bank with the following:
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Certificate of Incorporation
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NTN
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Board resolution for bank account opening
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CNICs of authorized signatories
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MOA and AOA
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Form 29 (list of directors)
Deposit the capital amount as stated in your incorporation documents.
Step 8: Register with Other Authorities (If Required)
Depending on your business model, consider registering with:
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Chamber of Commerce – useful for credibility and certifications
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Pakistan Single Window (PSW) – for import/export clearance
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Pakistan Customs (WeBOC) – mandatory for automotive imports
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Sindh Excise or Punjab Excise Department – for vehicle registration, if required
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EOBI and Social Security – if employing more than 5 workers
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Environmental Protection Agency (EPA) – for manufacturing or assembling units
Step 9: Ongoing Compliance
| Requirement | Frequency |
|---|---|
| Income Tax Return (FBR) | Annually |
| Sales Tax Return (FBR or PRA) | Monthly |
| Withholding Tax Statements | Monthly |
| SECP Form A (Annual Return) | Annually |
| SECP Form 29 (Director Changes) | As needed |
| Audit Reports (if turnover > Rs. 100 million) | Annually |
| EOBI/Social Security Payments | Monthly (if applicable) |
Taxation Overview for Automobile Companies
| Tax Type | Applicability |
|---|---|
| Corporate Income Tax | 29% (TY 2025) |
| Sales Tax on Goods | 18% (FBR) |
| Sales Tax on Services | 13%–16% (PRA/SRB etc.) |
| Customs Duty | Varies by vehicle type (25%–80%) |
| Withholding Tax on Imports | 5.5%–8% |
| Minimum Tax on Turnover (Section 113) | 1.25% |
Conclusion
Registering an automobile company in Pakistan requires careful planning, legal compliance, and sector-specific registrations. While a Private Limited Company is the most common legal form, you must also secure NTN, sales tax registration, and manufacturing/import approvals if applicable. Compliance with SECP, FBR, and relevant sectoral bodies like the Engineering Development Board (EDB) is essential for sustainable and legitimate operations.
Whether you’re launching a vehicle dealership, an EV manufacturing unit, or a spare parts import/export business, registering your company properly lays the foundation for success.
