Registering a Company in Pakistan

Registering a company in Pakistan is the first and most crucial step toward formalizing your business. Whether you’re launching a startup, expanding an existing business, or entering the market as a foreign investor, the process is regulated under the Companies Act, 2017, and overseen by the Securities and Exchange Commission of Pakistan (SECP). A properly registered company not only enjoys legal protection and brand credibility but also becomes eligible for tax incentives, banking services, and investment opportunities. This comprehensive guide walks you through the complete process of registering a company in Pakistan, including eligibility, types of companies, required documents, step-by-step procedure, compliance, and timelines.

1. Why Register a Company in Pakistan?

Registering a business in Pakistan provides numerous advantages:

• Legal identity and protection

• Brand credibility and trust

• Access to government tenders and grants

• Easier bank account opening and financing

• Investment attraction (angel investors or VCs)

• Eligibility for tax exemptions (especially for exporters and IT firms)

• Better scalability and operational control

2. Regulatory Bodies Involved in Company Registration

The following authorities regulate and process company registrations in Pakistan:

• Securities and Exchange Commission of Pakistan (SECP) – Main regulator

• Federal Board of Revenue (FBR) – Tax registration

• Pakistan Software Export Board (PSEB) – For IT/Software companies

• Provincial Revenue Authorities – Sales tax registrations (PRA, SRB, KPRA, BRA)

• Chambers of Commerce – Optional but useful for trade/export

3. Types of Companies You Can Register in Pakistan

The Companies Act, 2017 allows for different types of companies based on business needs:

a. Single Member Company (SMC)
Owned by one individual with one nominee.

b. Private Limited Company (Pvt. Ltd.)
Minimum of 2 and up to 50 shareholders. Ideal for startups and SMEs.

c. Public Limited Company
Minimum of 3 directors and 7 shareholders. Can be listed or unlisted.

d. Section 42 Company (Non-Profit)
Used for charitable, educational, religious, or social purposes.

e. Limited Liability Partnership (LLP)
Hybrid of a partnership and company.

f. Foreign Company/Branch or Liaison Office
Foreign-based companies can set up a presence in Pakistan with BOI and SECP approval.

4. Pre-Registration Considerations

Before initiating the registration process, consider the following:

• Decide on type of company

• Choose a unique business name

• Appoint directors/shareholders

• Define authorized capital

• Choose a registered address in Pakistan

• Prepare Memorandum and Articles of Association

5. Step-by-Step Process to Register a Company in Pakistan

The company registration process is completely online through SECP’s eServices Portal.

Step 1: Name Reservation

• Visit: https://eservices.secp.gov.pk

• Create an account and apply for “Company Name Reservation”

• Guidelines:

  • Avoid restricted words (e.g., Bank, Trust, Authority)

  • Name must not resemble any existing company

  • Must reflect business activity (e.g., Tech Solutions, Traders, etc.)

SECP usually approves name reservation within 1–2 working days.

Step 2: Obtain Digital Signature (PKI Token)

• Required to digitally sign incorporation documents

• Obtain from NIFT or authorized vendors

• Required for all directors and subscribers

Step 3: Prepare Incorporation Documents

Prepare and upload the following:

• Form-I: Declaration of compliance with Companies Act

• Form-21: Notice of registered office

• Form-29: Particulars of directors, CEO, and officers

• Memorandum of Association (MOA): Outlines company objectives

• Articles of Association (AOA): Defines rules and internal governance

• CNICs or Passports of all shareholders/directors

• Nominee’s CNIC and consent (for SMC)

Step 4: Submit Application via SECP Portal

• Log in to SECP eServices

• Choose “Company Incorporation”

• Fill all forms online and attach required documents

• Review and digitally sign using PKI tokens

Step 5: Pay Incorporation Fee

• Fee depends on authorized capital

• Paid online through:

  • Credit/debit card

  • 1Link, Easypaisa, JazzCash

  • Bank transfer

Step 6: Issuance of Certificate of Incorporation

Once approved, SECP issues a Certificate of Incorporation, which includes:

• Company name

• Incorporation number

• Company type

• Date of incorporation

Usually issued within 3–5 working days.

6. Post-Incorporation Requirements

After incorporation, companies must fulfill several legal and tax obligations:

a. National Tax Number (NTN) Registration

• Register with FBR via IRIS Portal

• Required for filing tax returns and opening bank account

b. Sales Tax Registration (Optional for IT/Export businesses)

• File with PRA, SRB, KPRA, or BRA

• Required for businesses offering taxable services or goods

c. Bank Account Opening
Submit the following to any scheduled bank:

• Certificate of Incorporation

• NTN Certificate

• MOA and AOA

• Board resolution for bank authorization

• CNICs of signatories

d. Board Meeting and Resolutions
First board meeting should be held to:

• Appoint CEO

• Approve bank signatories

• Allot shares to subscribers

• Approve company seal and share certificates

e. PSEB Registration (For Software/IT Companies)
Apply for registration to claim tax exemptions on export income.

f. UBO Declaration Filing
Submit details of Ultimate Beneficial Owner (anyone with 10%+ shareholding).

7. Required Documents Checklist

8. Timeline for Company Registration

Total: 7–14 working days for full setup

9. Cost of Company Registration

10. Benefits of Incorporation Over Sole Proprietorship

11. Foreign-Owned Company Registration in Pakistan

Foreign investors can own 100% shareholding in most sectors in Pakistan. To register a foreign-owned company:

• Reserve name and follow same SECP process

• Submit notarized passport copies

• Provide foreign company resolution for investment

• Get BOI approval for specific sectors (if applicable)

• File inward remittance details to SBP through bank

12. Common Mistakes to Avoid

• Selecting a restricted business name

• Submitting blurry or unmatched ID documents

• Missing digital signature requirements

• Not filing Form-29 when directors are appointed

• Failing to register for NTN after incorporation

• Not maintaining statutory books (e.g., register of members)

13. Annual Compliance Requirements

After incorporation, companies must annually:

• File Form A (Annual Return) with SECP

• Update Form 29 for any changes in management

• File income tax returns with FBR

• Submit sales tax returns (if applicable)

• Prepare and file audited accounts (if required)

Failure to comply leads to penalties, fines, or even deregistration.

14. Why Choose Sterling.pk for Company Registration

At Sterling.pk, we offer end-to-end support for company registration in Pakistan. Our services include:

• Name reservation and legal structure guidance

• Preparation and filing of SECP documents

• Digital signature processing

• FBR and sales tax registration

• PSEB certification (for IT firms)

• Banking and post-incorporation support

• Ongoing compliance and tax advisory

Conclusion

Registering a company in Pakistan is a streamlined and digital process that offers numerous business, legal, and tax advantages. With the right support and accurate documentation, you can incorporate your company in under two weeks and begin operating formally. Whether you are a local entrepreneur or a foreign investor, understanding the SECP process, FBR requirements, and legal framework ensures long-term compliance and growth.

At Sterling.pk, our expert advisors simplify the registration journey so you can focus on launching, operating, and scaling your business.