A Private Limited Company is the most preferred legal business structure in Pakistan for entrepreneurs, startups, and SMEs who seek limited liability, business credibility, and corporate governance. Registered and regulated by the Securities and Exchange Commission of Pakistan (SECP), it offers a well-structured, formal pathway for doing business in Pakistan.
This guide explains everything about private limited company registration in Pakistan: what it is, how to register, benefits and drawbacks, time required, tax implications, and FAQs.
What is a Private Limited Company in Pakistan?
A Private Limited Company (Pvt. Ltd.) in Pakistan is a legal entity formed under the Companies Act, 2017, which is separate from its shareholders and directors. It:
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Limits the liability of its members to their shareholding.
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Requires at least two directors and two shareholders (except for a Single Member Company).
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Cannot offer its shares to the general public.
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Must use “(Private) Limited” at the end of its name.
How to Register a Private Limited Company in Pakistan?
Private limited companies are registered with SECP (Securities and Exchange Commission of Pakistan) via its eServices portal. The process is completely online.
Step-by-Step Registration Process:
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Name Reservation
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Visit: SECP eServices
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Search for company name availability.
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Submit online Form CNIC-1 for name reservation.
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Time: 1 working day (usually).
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Preparation of Documents
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Memorandum of Association (MoA)
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Articles of Association (AoA)
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CNIC/NICOP/Passport copies of directors and shareholders
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Authorization and Undertaking (for online submission)
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Form 48 (Consent of Directors)
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Address and contact details of the company office
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Submission of Incorporation Application
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Fill Form INC-1 on SECP’s eServices portal.
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Upload MoA and AoA with other documents.
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Pay the incorporation fee via online payment or bank challan.
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Incorporation Certificate
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Once documents are verified and approved, SECP issues the Certificate of Incorporation along with:
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NTN (National Tax Number)
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Company’s incorporation number
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Time: Usually within 3 to 5 working days from name reservation.
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Post-Incorporation Tasks
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Open corporate bank account.
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Register with FBR for sales tax (if applicable).
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Register with PSEB (if exporting IT services).
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Apply for chamber of commerce membership (optional but beneficial).
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Maintain statutory registers, company seal, and board resolutions.
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How Much Time Does It Take?
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Name Reservation: 1 working day
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Company Registration (post-name approval): 2 to 4 working days
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Total Time Required: 3 to 5 working days, depending on document accuracy and SECP workload.
Benefits of Registering a Private Limited Company
| Benefit | Description |
|---|---|
| Limited Liability | Shareholders are only liable to the extent of their shares. |
| Separate Legal Entity | The company can own assets and enter contracts independently. |
| Business Credibility | Improves trust with investors, banks, and clients. |
| Continuity | Not affected by death or exit of shareholders. |
| Ease in Fundraising | Venture capital and institutional investors prefer Pvt Ltd companies. |
| Tax Deductions | Corporate tax allows deduction of business expenses. |
Drawbacks of a Private Limited Company
| Drawback | Description |
|---|---|
| Compliance Burden | Regular filings with SECP and FBR are mandatory. |
| Costs | Legal, accounting, and audit expenses are higher. |
| Public Disclosure | Certain financial and structural information is publicly accessible. |
| No Public Shares | Cannot raise capital via public stock exchange. |
Comparison: Private Limited Company vs. Other Registrations
| Feature | Private Limited Company | Sole Proprietorship | Partnership |
|---|---|---|---|
| Legal Status | Separate Entity | Not separate | Not separate |
| Liability | Limited | Unlimited | Unlimited (joint/several) |
| Ownership | Minimum 2 | 1 | Minimum 2 |
| Continuity | Perpetual | Ends with owner | Ends on change in partners |
| Compliance | High | Low | Moderate |
| Taxation | Corporate Tax | Individual Tax | AOP Tax |
Private limited company is generally preferred for medium to large businesses and those aiming for structured growth and credibility.
What is the Tax Rate for Private Limited Company in Pakistan?
As of the Tax Year 2025:
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Standard Corporate Tax Rate: 29%
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SMEs (under specific conditions): 15% to 20%
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Export-oriented or IT businesses: May avail tax exemptions or reduced rates under PSEB or STZA registration.
Note: Tax rates are subject to annual Finance Acts. Consult a tax consultant for up-to-date planning.
FAQs – Private Limited Company Registration in Pakistan
What is a private limited company?
A private limited company is a legally registered business that limits its liability to shareholders, cannot sell shares to the public, and is governed by the SECP under the Companies Act, 2017.
What is a private limited company in Pakistan?
In Pakistan, it is a company registered with SECP that enjoys a separate legal identity, limits liabilities of shareholders, and follows a corporate structure suitable for business growth and credibility.
How to register a private limited company in Pakistan?
You can register online via SECP’s eServices portal by reserving your company name, preparing incorporation documents, submitting Form INC-1, and paying the required fees. The process takes 3–5 working days.
What is the tax rate for private limited company in Pakistan?
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Standard corporate tax: 29%
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Small companies (under Section 2(59A)): 15%
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Exporters (IT/Software/Services): May get exemptions under PSEB/STZA certifications.
What is SECP?
SECP stands for the Securities and Exchange Commission of Pakistan, the corporate regulator responsible for company incorporation, filings, and compliance.
Where can I check SECP company details?
You can check any registered company’s details on SECP’s official portal:
👉 https://www.secp.gov.pk/company-name-search/
What is SECP login for private limited company?
Once your company is registered, SECP provides login credentials to access the eServices dashboard where you can:
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File annual returns
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Make changes to company structure
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Update shareholder/director information
👉 Login here: https://eservices.secp.gov.pk
Final Thoughts
A Private Limited Company is a robust business structure in Pakistan that ensures business continuity, limited liability, and professional branding. With an easy and fast online registration process through SECP, it is the preferred route for entrepreneurs and growing businesses. However, it comes with compliance responsibilities and professional costs that need to be managed efficiently.
