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How to register an offshore company in Pakistan

How to register an offshore company in Pakistan


The concept of offshore companies has gained significant popularity worldwide due to their potential benefits, such as tax advantages, privacy, asset protection, and enhanced business flexibility. Pakistan, as an emerging market, also offers opportunities for entrepreneurs and investors interested in establishing offshore entities.


Offshore Company: An offshore company refers to a legal entity established in a foreign jurisdiction, typically a tax haven or low-tax jurisdiction. It enables individuals or corporations to conduct business internationally while enjoying certain advantages, such as tax optimization, privacy, and reduced regulatory requirements.

Tax Haven: A tax haven is a jurisdiction with favorable tax regulations that attract non-resident individuals and businesses seeking to minimize their tax liabilities. These locations often offer low or zero taxation on specific types of income, such as corporate profits, dividends, or capital gains.


Step 1: Determine the Offshore Jurisdiction:

Before registering an offshore company in Pakistan, it is important to choose the appropriate offshore jurisdiction. Consider factors such as tax benefits, regulatory environment, political stability, and reputation. Popular offshore jurisdictions include the British Virgin Islands, Cayman Islands, Isle of Man, and Mauritius.

Step 2: Seek Professional Advice:

Engage the services of a professional consultant or legal firm specializing in offshore company registration. Their expertise will guide you through the entire process and ensure compliance with relevant laws and regulations. They will help you select the most suitable offshore jurisdiction based on your specific requirements.

Step 3: Name Reservation:

Choose a unique name for your offshore company and submit it to the Securities and Exchange Commission of Pakistan (SECP) for reservation. The name should not be similar to any existing company name in Pakistan. Once the name is approved, it will be reserved for a specific period.

Step 4: Document Preparation:

Prepare the necessary documents required for offshore company registration, including:

a. Memorandum and Articles of Association: Draft these documents to outline the company’s objectives, share capital, ownership structure, and operational details.

b. Directors’ and Shareholders’ Details: Provide information about the directors and shareholders, including their names, addresses, nationalities, and copies of identification documents.

c. Registered Office: Establish a registered office address for the offshore company in Pakistan. This address will serve as the official contact for communication and legal purposes.

d. Share Capital: Decide on the amount and currency of the company’s share capital. This determines the ownership structure and initial investment.

e. Appointment of Company Secretary: Appoint a company secretary who will handle administrative tasks and ensure compliance with legal requirements.

Step 5: Submission and Review:

Submit the completed documents to the SECP for review. The SECP will assess the application and may request additional information or amendments if necessary. It is important to provide accurate and complete information to avoid delays or rejection.

Step 6: Payment of Fees:

Pay the required registration fees to the SECP. The fee structure may vary based on the offshore jurisdiction chosen and the nature of the company.

Step 7: Issuance of Certificate of Incorporation:

Upon successful review and payment of fees, the SECP will issue a Certificate of Incorporation. This document serves as proof of the company’s registration and legal existence.

Step 8: Post-Incorporation Compliance:

After obtaining the Certificate of Incorporation, fulfill the following post-incorporation compliance requirements:

a. Tax Registration: Register the offshore company with the Federal Board of Revenue (FBR) for tax purposes. Obtain a Tax Identification Number (NTN) and ensure compliance with tax regulations.

b. Bank Account Opening: Open a corporate bank account for the offshore company in Pakistan or the chosen offshore jurisdiction. Provide the necessary documentation, including the Certificate of Incorporation, to the bank.

c. Ongoing Compliance: Comply with annual filing requirements, financial reporting obligations, and any other legal and regulatory obligations imposed by the SECP and the FBR.


British Virgin Islands (BVI): BVI is a popular choice for offshore company formation due to its well-established legal framework, political stability, and tax benefits. It offers zero corporate tax, no capital gains tax, and no inheritance tax.

Cayman Islands: Known for its financial services industry, the Cayman Islands offer attractive features such as no corporate tax, no capital gains tax, and strict confidentiality laws. Many multinational corporations choose this jurisdiction for their offshore operations.

Case Studies

XYZ Inc.: XYZ Inc., a technology startup based in Pakistan, decided to establish an offshore company in Mauritius due to its favorable tax policies and double taxation agreements. By registering an offshore entity, XYZ Inc. was able to minimize its tax liabilities while expanding its international operations. The offshore company facilitated access to global markets and reduced bureaucratic complexities.

ABC Ltd.: ABC Ltd., a manufacturing company in Pakistan, established an offshore company in the Isle of Man to optimize its tax structure. By routing its international sales and royalties through the offshore entity, ABC Ltd. achieved significant tax savings. Additionally, the offshore company provided privacy and asset protection benefits.


Establishing an offshore company in Pakistan offers numerous advantages to entrepreneurs and investors. By leveraging favorable tax policies and other benefits of offshore jurisdictions, businesses can optimize their tax structures, protect assets, and expand their international footprint. However, it is crucial to carefully consider the legal and regulatory aspects, ensuring compliance with both local and international laws. Seeking professional guidance from legal and financial experts is strongly recommended to navigate the complexities involved in registering an offshore company.

In conclusion, offshore company registration in Pakistan can be a viable option for those seeking to optimize their business operations. The potential benefits are significant, including tax advantages, enhanced privacy, and increased global market access. However, it is essential to conduct thorough research, consult with experts, and adhere to legal and regulatory requirements to ensure a successful and compliant offshore company setup.