Who Owns What? New Rules for Transparency in Pakistan
The Government of Pakistan wants to know who truly owns businesses and organizations. To achieve this, the Federal Board of Revenue (FBR) has introduced new rules called Beneficial Ownership Registration.
What does this mean?
- If you own or control a company or association of persons (AOP) in Pakistan, you need to tell the FBR who your real owners are. These are called beneficial owners.
- Who counts as a beneficial owner? Anyone who directly or indirectly controls at least 25% of the company/AOP through shares, voting rights, or other means (like contracts or family connections).
- What information do you need to provide? This includes names, dates of birth, nationalities, and contact details of the beneficial owners, along with details of their ownership or control.
Why is this important?
- Transparency helps prevent financial crime and tax evasion.
- It promotes good corporate governance and responsible business practices.
- It aligns Pakistan with international standards for financial transparency.
When do you need to do this?
- Most companies and AOPs already registered with the FBR need to submit their beneficial owner information by December 31st, 2023.
- New registrants should submit the information upon initial registration.