Are you interested in starting a company in Pakistan? The process of registering a company can seem daunting, but it doesn’t have to be. By following a few simple steps, you can set up a business that is legally recognized and compliant with all relevant regulations. In this article, we will provide you with a step-by-step guide to registering a company in Pakistan.
Step 1: Approval of Company Name
Before you can register your company, you must first choose a name for it. The name you choose must be unique and not already registered with the Securities and Exchange Commission of Pakistan (SECP). You can check the availability of your chosen name by visiting the SECP website and performing a name search. Once you have chosen a name that is available, you must submit an application to the SECP for approval.
Step 2: Submission of Required Documents
Once you have received approval for your company name, you must prepare and submit the required documents to the SECP. These documents include the memorandum of association, articles of association, and other legal documents. The memorandum of association outlines the objectives of the company, while the articles of association outline the rules and regulations that govern the company’s operations. You must also provide proof of payment of the registration fee.
Step 3: Certificate of Incorporation
After the SECP has reviewed and approved your documents, they will issue you a certificate of incorporation. This certificate serves as proof that your company has been legally registered with the SECP and is authorized to conduct business in Pakistan.
Step 4: Deposit of Shares
Once you have received your certificate of incorporation, you must deposit the shares of your company with a designated bank. This step is necessary to show that the minimum capital requirements have been met. For a single member, private limited company, or unlisted company, the minimum capital requirement is PKR 100,000. For public listed companies, the minimum capital requirement is PKR 200 million.
Step 5: Registration for Taxes
All companies in Pakistan must register for income, sales, and relevant taxes. You must obtain a national tax number (NTN) from the Federal Board of Revenue (FBR) and register for sales tax with the relevant authorities. Failure to register for taxes can result in penalties and legal consequences.
Step 6: Appointing an Auditor and Audited Accounts
All companies with more than PKR 3 million in paid-up capital must appoint a chartered accountant firm to audit their accounts. Companies with less than PKR 3 million in paid-up capital may appoint either an ICMA or a chartered accountant. Companies with less than PKR 1 million in paid-up capital are not required to appoint an auditor or submit audited accounts while filing annual returns with the SECP and FBR.
Registering a company in Pakistan requires following a set of instructions and abiding by the rules set forth by the Securities and Exchange Commission of Pakistan. The process can be simplified by following the steps outlined in this article. By ensuring that you have met all the requirements, you can start your business with confidence and peace of mind. Remember to register for taxes and appoint an auditor if required by law. With these steps in mind, you are well on your way to starting a successful company in Pakistan.