How to register a company in Pakistan?

All over the world, owning a company is one of the underline dream for many people. It is often
seen is long process of becoming wealthy and sustainable. However, it is a tedious process,
from start throughout the business period. In this article, you will clearly see, steps to register a
company in Pakistan.

Firstly you need to know that companies in Pakistan are registered with the Securities and
Exchange Commission of Pakistan (SECP). It is the only organization granted access to register
companies by the government of Pakistan.
There are three types if companies under the Ordinance :-
a) A company limited by shares
b) A company limited by guarantees
c) An unlimited liability company
Following are the step to register a company :-
1. Get Your Identity
First step is to check the availability of name for your company from the registrar of companies.
You need to submit an application to the registrar and get name availability certificate from
SECP. This can be done in two ways : online or manually. Before making an application for the
certificate please check for the availability by ding name search in SECP website and then if it is
available you may proceed with the certificate application. Although it sounds simple, there are
few restrictions in choosing a name for the company. Make sure no PROHIBITED words are
used, dont use any deceptive or inappropriate words and must not have closer resemblance
with an existing company.
2. Fees Payment & Prepare the documents
After receiving the name availability certificate, next step will be the preparation of documents.
Applicant will need to file an application for incorporation. The fees involved in this process
should be paid using relevant bank documents at branches of The Muslim Commercial
Bank(MCB). After the payment has been done, applicant would need to submit the following
documents :-
a) Declaration of compliance
b) Identification of offices location
c) Details about the directors, secretary, accountant and other important personnel
d) Copies of Memorandum of Association and Articles of Association with signature from
each member
What is Memorandum of Association?
This is a document that tell about the objective of your company. You must clearly mention your
services and field of your business as well as aim of your organization. Eg : Tourism, Rental
Agency and etc. Four copies of Memorandum of Association must be prepared.
What is Articles of Association?
In this document, you have to mention your rules and regulation of the company, your business
model, job description of your director, secretary and all your personnel in your company and
how the company will be run. Eg : How often will the meeting of board of director will be?, What
is the role of Directors? Four copies of Articles of Association must be submitted.

Other than these two important document, there are also few other forms needed.
a) Form 1
It is a declaration from owner of the company. The form can be downloaded from the
website of Securities and Exchange Commission website

b) Form 21
This form will inform the address of the company undergoing the registration process to
the registrar

c) Form 29
This is an appointment form. This is often used to appoint company director, legal
advisor, auditor and secretary. It contains particular about the personnel being
appointed.

3. Power of Attorney

This is a process done by company directors if they are asking a third party to handle the
process of registration of a company. This allow the third party to completely handle the
procedures involving the registration.

4. Submission of Document

After compiling all relevant document stated above, you may submit the documents to
relevant authorities. Once the registrar is satisfied with all the documents provided, they will
issue you the incorporation certificate for the newly registered company. The registration
process will take about 3-5 working days to process and issue of certificate.

However, there are few other procedures need to be followed by company owners to ensure
smooth start to their respective business. Following are some of the steps need to be done
to ensure no problems faced during business transactions.

5. Digital Signature & Company Seal

This signature is given by National Institution Facilitation Technologies (NIFT) and be

received using E-services of SECP. After receiving the incorporation certificate, sometimes
you are required to present a corporate seal or also known as company seal. So please
ensure that you have your digital signature & company seal ready once you receive your
incorporation certificate.
6. Register for NTN/GST
Besides SECP you also required to register your company with FBR to obtain a National Tax
Number(NTN). On top of that, depending on nature of your business, you are also required
to register for General Sales Tax (GST). To register for income tax, you are required to
obtain your NTN at the tax facilitation centers of Regional Tax Office (RTO) in your
respective areas. You can also apply for NTN through online. Requirements to apply for
NTN at RTO or FBR are :-

NTN Form
Registration proof
Memorandum and Articles of Association
Bank account number
Identity card of company directors
Details on business address

You also may apply your GST number at the RTO office and they will issue separate
certificate for your NTN and GST. To commence your business you are required to apply for
a Professional Tax Certificate which is to be renewed every year at your nearest Excise &
Taxation office. However your NTN and GST certificate does not require yearly renewal.

7. Social Security Registration

This registration is important to attract employees to your company. With this registration, it
shows that your company follows the rules for labor set by the government. Your social
security registration varies based on location.
If your company is located at Punjab, you may register with PESSI, if it is in Sindh province,
register at SESSI, if your company is located at Balochistan province, you may register with
BESSI.

You are also required to register your company with Employees Old Age Benefits Institution
(EOBI) which is a government institution. Once your company is registered with them, you
employees are insured with EOBI and are entitled for pension. The pension will be deducted
by EOBI from the company salary automatically via the National Bank and any updates can
be done by using EOBIs web portal.

8. Labour Department Registration

For the safety if your employees, your company is required to be registered with this
department. This is need to be done if your company has more than 2 employees. This
provide basic rights and security for the employees working in your company.

This is the entire process of company registration in Pakistan. This is essential to ensure the
registration of your company is successful and to ensure your business kick start in the perfect
way. It also follows all the rules set by the government. However, procedures might be changed
by relevant authorities every now and then, therefore please ensure that you keep yourself
updates and please dont hesitate to ask for assitance from relevant authorities.