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Legal requirements for company registration in Pakistan

Legal requirements for company registration in Pakistan


Registering a company is an essential step towards establishing a legal entity in Pakistan. The process ensures that the company operates within the framework of the law and provides a structured environment for conducting business. This article aims to provide a detailed overview of the legal requirements for company registration in Pakistan, including definitions, examples, case studies, and a comprehensive conclusion.


Company: A company refers to an incorporated entity that has a separate legal existence from its owners and shareholders. It can be a private limited company, a public limited company, or a single-member company.

Memorandum of Association (MoA): The MoA outlines the company’s objectives, scope of operations, and the rights and responsibilities of its members. It serves as the company’s constitution.

Articles of Association (AoA): The AoA specifies the internal regulations for the company’s governance, management structure, and operational procedures. It complements the MoA.

Legal Requirements:

Name Reservation: The first step in the registration process involves selecting a unique company name and obtaining its reservation from the Securities and Exchange Commission of Pakistan (SECP). The name should not be identical or misleadingly similar to any existing company.

Memorandum and Articles of Association: Prepare the MoA and AoA according to the Companies Act, 2017. These documents outline the company’s purpose, share capital, shareholders’ rights, directors’ powers, and internal regulations.

Directors and Shareholders: A company must have at least one director and one shareholder. Both can be individuals or corporate entities. The director(s) should be over 18 years old, mentally sound, and not convicted of any criminal offense.

Registered Office: A company must have a registered office in Pakistan where official communications and notices can be served. The address must be provided during the registration process.

Form A-21: Submit the prescribed Form A-21, along with the MoA, AoA, and other necessary documents, to the SECP. This application initiates the registration process.

Capital Requirements: For a private limited company, the minimum authorized share capital is PKR 100,000, whereas for a single-member company, it is PKR 500,000. A public limited company must have a minimum authorized share capital of PKR 2 million.

Tax Registration: After company registration, obtain a National Tax Number (NTN) and register for income tax, sales tax, and any other applicable taxes.



ABC Technologies Private Limited:

ABC Technologies selects a unique name and obtains its reservation from the SECP.

The founders prepare the MoA and AoA, defining the company’s objectives and internal regulations.

They appoint two directors and allocate shares among the shareholders.

The registered office address is provided.

The founders submit the required documents, including Form A-21, to the SECP.

After approval, ABC Technologies Private Limited is registered as a legal entity.

XYZ Industries Public Limited:

XYZ Industries conducts a thorough search to ensure its chosen name is not already in use.

The founders draft the MoA and AoA, specifying the share capital, directors’ powers, and shareholders’ rights.

They appoint a board of directors and allocate shares accordingly.

The registered office address is provided.

XYZ Industries submits the necessary documents, including Form A-21, to the SECP.

Upon successful registration, XYZ Industries Public Limited is formed.

Case Studies:

Case Study: Company Registration Challenges

ABC Services Pvt. Ltd. faced delays in its registration process due to a technical issue with the SECP’s online portal. Despite submitting all the required documents, the company’s application was not processed for several weeks. This delay affected their ability to secure business contracts and caused frustration among the founders. To address the issue, the company’s representatives contacted the SECP directly, highlighting the problem and requesting expedited processing. The SECP acknowledged the issue and promptly resolved the technical glitch, ensuring that ABC Services Pvt. Ltd. was registered within a week.

Case Study: Compliance with Capital Requirements

XYZ Manufacturing Pvt. Ltd. initiated the registration process with a share capital of PKR 50,000, which fell short of the minimum capital requirement for a private limited company. As a result, their application was rejected by the SECP. Realizing the error, the company’s founders raised additional funds from investors and increased the share capital to PKR 100,000. They resubmitted the application with the corrected capital amount and successfully registered XYZ Manufacturing Pvt. Ltd.



In conclusion, the process of company registration in Pakistan involves various legal requirements that are essential for establishing a legitimate and compliant entity. These requirements include selecting a unique company name, preparing the Memorandum of Association (MoA) and Articles of Association (AoA), appointing directors and shareholders, providing a registered office address, submitting the necessary forms and documents to the Securities and Exchange Commission of Pakistan (SECP), meeting the capital requirements, and obtaining tax registrations.

Two case studies highlighted the challenges that companies may face during the registration process. Delays in processing applications due to technical issues can hinder business operations and contracts. In such cases, direct communication with the SECP and timely resolution of the problem can help expedite the registration process. Another challenge can arise from not meeting the minimum capital requirements, resulting in the rejection of the application. However, proactive measures, such as raising additional funds or adjusting the share capital, can rectify this issue and ensure successful registration.

By fulfilling the legal requirements, companies in Pakistan can establish a solid legal framework, gain credibility in the market, and protect their stakeholders’ interests. Company registration provides a structured environment for conducting business, facilitates legal compliance, and enhances the company’s ability to engage in various commercial activities.

It is important for individuals and entities interested in starting a business in Pakistan to familiarize themselves with the specific legal requirements and seek professional guidance if needed. Adhering to these requirements will not only ensure compliance with the law but also contribute to the growth and success of the company in the long run.

In summary, company registration in Pakistan is a crucial step towards establishing a legal entity. By following the prescribed legal requirements, companies can gain legal recognition, protect their interests, and operate within the boundaries of the law. It is important to stay informed about any updates or changes in the registration process and seek expert advice to ensure a smooth and compliant registration experience.