How to renew a business registration in Pakistan

Business registration in Pakistan is not always a one-time process. While some entities, like sole proprietorships and partnerships, may operate without formal renewal for years, others — especially companies registered with the Securities and Exchange Commission of Pakistan (SECP) or regulated entities like Section 42 non-profits — are legally required to renew or update their registrations periodically.

Renewing a business registration ensures your business remains active, compliant, and visible to government bodies, tax authorities, clients, and financial institutions. In this article, we provide a complete guide to renewing different types of business registrations in Pakistan, covering SECP companies, sole proprietorships, partnerships, and licensed businesses operating under specific authorities.

Why Business Registration Renewal is Important

• Legal Continuity: Avoids deactivation or striking off by SECP or Registrar of Firms

• Tax Compliance: Ensures updated status with FBR and sales tax authorities

• Banking and Contracts: Maintains validity of agreements and bank relationships

• Tenders and Licensing: Necessary for applying to public and private tenders

• Reputation and Trust: Enhances credibility among customers and stakeholders

Regulatory Authorities for Renewal

Different types of businesses must renew their registration or legal standing with different authorities:

• SECP: For private/public companies, SMCs, LLPs, and Section 42 companies

• Registrar of Firms: For partnership firms

• FBR: For NTN and tax profile updates

• Chamber of Commerce: Annual renewal for membership certificates

• Professional Bodies: Depending on business sector (e.g., PEC, PSEB, PRA)

Renewal Requirements by Business Type

1. Renewal of SECP-Registered Companies

SECP does not require a “renewal” of company incorporation per se. However, companies must maintain active status through mandatory annual compliance.

a. Filing Form A (Annual Return)

• Purpose: Updates SECP with the latest shareholder and director details

• Due Date: Within 30 days of holding the Annual General Meeting (AGM)

• Applicable To: Private, Public, and SMCs

• Filing Mode: Online through SECP eServices

• Penalty for Delay: PKR 2,500/day and potential deactivation

b. Filing Audited Accounts

• Required annually along with Form A

• Companies with capital over PKR 10 million must submit audited financials

• Small companies may submit unaudited accounts with certification

c. Updating Statutory Records

• Form 29 for changes in directors

• Form 21 for change in registered office

Failure to meet these compliance requirements may result in the striking off of the company name or change in legal status to “inactive.”

2. Renewal of Section 42 Non-Profit Companies

Section 42 companies must renew their license from SECP every 3 years.

Renewal Process:

• Submit application at least 30 days before expiry

• Attach latest audited accounts, activity report, and compliance certificates

• Pay prescribed renewal fee (currently PKR 20,000 for most cases)

• Await SECP license extension approval

SECP may revoke the license if the organization fails to meet public interest criteria or violates terms of incorporation.

3. Renewal of Partnership Firm Registration

While the Partnership Act, 1932 does not mandate periodic renewal, the following should be updated with the Registrar of Firms when applicable:

• Change in Partnership Deed

• Addition or Retirement of Partner

• Change in Business Address

Any such amendment must be reported through revised Form I and submission of a fresh partnership deed on stamp paper. This keeps the firm’s records current and avoids legal ambiguity.

4. Renewal of Sole Proprietorship (Tax Status)

Sole proprietors do not need to renew their FBR registration unless:

• They were marked inactive due to non-filing

• Their business details (nature, address, ownership) changed

In such cases, update is done through the FBR IRIS portal using Form 181. If you’re flagged inactive, you must submit:

• Proof of ongoing business

• Updated utility bill or tenancy agreement

• Application for reactivation via regional tax office

Additionally, renewal of chamber membership, trade license, or sales tax registration may be required depending on business activity.

5. Renewal of Chamber of Commerce Membership

Businesses registered with regional chambers must renew membership annually.

Process:

• Submit renewal application online or at chamber office

• Pay annual fee based on business category (sole proprietor, AOP, or company)

• Submit copy of NTN, tax return, bank certificate, and business letterhead

Deadline: Usually by 31st March every year
Failure to renew results in cancellation of membership and removal from chamber directories.

6. Renewal of Sales Tax Registration (FBR or PRA/SRB)

Sales tax registration does not expire, but inactivity may lead to suspension.

Reactivation:

• File pending sales tax returns

• Submit activation request on FBR IRIS or PRA e-portal

• Provide updated utility bill and business address verification

In cases where business has remained inactive, FBR may require fresh verification of premises and bank details.

7. Renewal of Trade Licenses from Local Government

Municipal or Tehsil authorities often require annual renewal of:

• Trade Licenses

• Food Licenses

• Factory Licenses

• Signboard Tax Receipts

Process:

• Submit renewal form

• Pay license fee (amount depends on business size and locality)

• Provide copy of old license, utility bill, and CNIC

Non-renewal may result in fines, sealing of business premises, or cancellation.

8. Renewal with Sector-Specific Authorities

a. Pakistan Software Export Board (PSEB)

• Annual renewal required for registered IT/Software companies

• Submit audited accounts, business activity proof, and tax returns

b. Pakistan Engineering Council (PEC)

• Required for engineering companies and consultants

• Renew PEC License annually based on business classification

c. Food and Health Authorities

• Submit inspection reports, payment proof, and health certifications

Renewal Checklist