If you are starting a business with one or more individuals in Pakistan, registering as a Partnership Firm is one of the most popular and cost-effective options. Governed under the Partnership Act, 1932, a partnership allows two or more persons to carry on a lawful business jointly, sharing profits, losses, responsibilities, and control.
This article explains the complete process to register a partnership business in Pakistan, the legal framework, required documents, and post-registration tax obligations for 2025.
What is a Partnership?
A partnership is a business structure in which two or more individuals agree to share the responsibilities, capital, profits, and losses of a business. It is different from a company in the sense that it does not have a separate legal identity — the partners are personally liable for debts and obligations.
Types of Partnership in Pakistan
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General Partnership – All partners share equal liability
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Limited Partnership – Some partners have limited liability
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Registered Partnership – Legally registered with the Registrar of Firms
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Unregistered Partnership – Valid but lacks legal enforcement rights in case of disputes
To protect your rights and avoid legal complications, it is highly recommended to register your partnership firm.
Where to Register a Partnership in Pakistan?
Unlike companies registered with SECP, partnership firms are registered with the Registrar of Firms under the relevant Provincial Government (Punjab, Sindh, KPK, or Balochistan).
For example:
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Punjab: Office of Registrar of Firms under Industries Department
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Sindh: Directorate of Industries, Government of Sindh
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KPK & Balochistan: Department of Industries respective provincial registrars
Step-by-Step Guide to Register a Partnership
Step 1: Choose a Business Name
Pick a unique and suitable name for your partnership business. The name:
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Must not already be in use by another registered business
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Should not violate trademarks or sound misleading (e.g., use of words like “Company,” “Corporation,” etc., is restricted)
You can do a basic search via Google or provincial registrar websites.
Step 2: Obtain National Tax Number (NTN) for Each Partner
Every partner must have an NTN issued by the Federal Board of Revenue (FBR). The process is as follows:
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Visit the nearest Regional Tax Office (RTO) or Tax Facilitation Center (TFC)
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Submit CNIC, proof of business address, bank certificate, and a mobile number registered in your name
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Alternatively, individuals can register for NTN online via FBR’s IRIS portal
Step 3: Draft a Partnership Deed (Agreement)
The partnership deed is a legal document that governs the rights, responsibilities, capital contribution, and profit/loss-sharing ratio among partners. It should include:
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Name and address of the firm
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Names and CNICs of all partners
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Nature of business
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Duration (fixed/indefinite)
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Capital contribution by each partner
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Profit/loss ratio
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Duties, rights, and restrictions of partners
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Dispute resolution method
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Exit or retirement clauses
The deed must be printed on stamp paper, notarized, and signed by all partners.
Step 4: Register the Partnership with Registrar of Firms
Visit the Registrar of Firms office in your respective province and submit the following:
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Application for registration (Form-I)
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Notarized Partnership Deed
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CNIC copies of all partners
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Proof of registered office address (rent agreement or ownership papers)
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Affidavit affirming the correctness of the information
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Bank challan or treasury receipt of registration fee
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Passport-size photographs of all partners
Once submitted, the Registrar will verify your documents and issue a Certificate of Registration, which legally registers your partnership firm.
Step 5: Open a Business Bank Account
With your registration certificate and NTN, open a business account in your partnership firm’s name. Most banks require:
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Registered Partnership Deed
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Registration Certificate
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CNICs of all partners
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Authority letter to operate the account
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NTN certificate
Step 6: Register for Sales Tax (if applicable)
If your business deals with taxable goods or services, you must register with the FBR for Sales Tax.
Apply for STRN (Sales Tax Registration Number):
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Log into FBR’s IRIS portal
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Go to Registration → Form 181 → Select “Sales Tax”
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Upload tenancy proof, utility bill, business bank certificate
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After verification, you’ll receive STRN and National Sales Tax Number (NSTN) (in applicable sectors)
This enables you to:
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Charge sales tax on invoices
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Claim input tax
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File monthly sales tax returns (by the 18th)
Post-Registration Responsibilities
Once your partnership is registered, you must:
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File annual income tax returns using your Partnership NTN
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Submit Form-A and Form-B to FBR as required
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Maintain proper books of accounts
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File monthly sales tax returns (if registered for sales tax)
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Update changes in partners or business address with the Registrar
Benefits of Registering a Partnership Firm
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Legal recognition and enforceability
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Access to business banking and credit facilities
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Eligibility to participate in tenders, contracts, and B2B transactions
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Flexibility in structure compared to companies
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Reduced regulatory burden compared to limited companies
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Can later convert to Private Limited Company if needed
Conclusion
Registering a partnership in Pakistan is a simple and cost-effective way to start a business. From choosing a name to drafting a deed and obtaining registration, each step helps you operate legally and grow with confidence.
