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Queries about Company Registration in Pakistan

by Muhammad Ahmad
written by Muhammad Ahmad

How to registered a PVT Ltd company in Pakistan

Registering a private limited company in Pakistan involves several steps, which include preparing the necessary documentation, submitting applications, and completing formalities with the Securities and Exchange Commission of Pakistan (SECP). Here’s a step-by-step guide to the process:

Step 1: Name Reservation

  1. Choose a Company Name: The name should not be identical or similar to an existing registered company and should not violate any SECP naming guidelines (e.g., avoid prohibited words).
  2. Apply for Name Reservation: You can reserve your company’s name through SECP’s eServices portal. You will need to create an account, and after logging in, fill out a name reservation application.
    • Processing Time: Typically 1-2 working days.
    • Fee: PKR 200. (can be updated)

Step 2: Prepare Incorporation Documents

  1. Memorandum of Association: This document outlines the scope of activities the company will undertake.
  2. Articles of Association: This document governs the internal management of the company.
    • SECP provides templates for these documents, which can be modified based on your needs.

Step 3: File for Incorporation

  1. Log into eServices and select “Company Incorporation” to begin the process.
  2. Complete the online forms which include:
    • Form 1 (Declaration of Compliance)
    • Form 21 (Notice of Situation of the Registered Office)
    • Form 29 (Particulars of Directors, CEO, etc.)
  3. Upload the required documents:
    • Scanned copies of Memorandum & Articles of Association.
    • CNIC copies of the directors and CEO.
    • Name reservation letter.
  4. Pay the incorporation fee, which varies depending on the authorized capital of the company.Authorized Capital (PKR)Fee (PKR)Up to 100,0001,500100,001 – 500,0002,500500,001 – 1,000,0004,000Above 1,000,0008,000+You can pay this fee via online banking or bank deposit.

Step 4: Digital Signatures

After filing for incorporation, you will need to obtain digital signatures for the directors and CEO from the National Institutional Facilitation Technologies (NIFT), which is integrated with SECP’s eServices portal.

Step 5: Certificate of Incorporation

Once all documents are submitted and reviewed, SECP will issue the Certificate of Incorporation, officially registering your company. This process usually takes about 5-7 working days after submission of all required documents.

Step 6: Post-Incorporation Requirements

  1. Open a Corporate Bank Account: You’ll need to provide the certificate of incorporation and other company documents.
  2. Register for Taxation: Obtain a National Tax Number (NTN) from the Federal Board of Revenue (FBR) and register for sales tax if applicable.

How to registered a company in Punjab

Registering a company in Punjab, Pakistan follows a similar process as the overall company registration in the country, but here’s a step-by-step guide with specific considerations for companies being incorporated in Punjab:

1. Decide the Type of Company

Can I run a company without registration in Pakistan

Yes, you could run a small or casual business in Pakistan without registration, however there are sure obstacles and dangers worried. Here’s what you need to realize about running an unregistered business:

Lack of Legal Recognition: An unregistered business doesn’t have a separate legal identity, so you won’t be able to issue legal contracts, open a business bank account, or engage with larger corporations or government agencies.

Liability: In an unregistered business, especially for sole proprietorship’s, the owner is personally liable for all business debts and legal issues.

Limited Access to Credit and Investment: Without registration, you may find it difficult to raise funds, get bank loans, or attract investors.

No Brand Protection: Your business name won’t be protected legally, meaning anyone could potentially use the same name.

Restricted Growth Opportunities: Unregistered businesses often have difficulty expanding or working with larger clients or government entities, as they typically prefer dealing with registered entities.

How to registered a company with FBR

Registering a company with the Federal Board of Revenue (FBR) in Pakistan is an important step to ensure compliance with tax laws. After your company is incorporated through the Securities and Exchange Commission of Pakistan (SECP), you must register with FBR for a National Tax Number (NTN) and, if applicable, for Sales Tax Registration (STR). Click here get step by step procedure of get registration of your company in FBR.

How to registered a brand name in Pakistan

What is the stamp duty for company registration in Punjab

The stamp duty for company registration in Punjab, Pakistan, varies based on the authorized share capital of the company and other applicable charges related to the incorporation. Here’s a breakdown of the relevant stamp duties:

1. Stamp Duty on Memorandum of Association

Stamp duty is applicable on the Memorandum of Association at the time of company registration in Punjab. The stamp duty rates are based on the authorized share capital of the company and are subject to the regulations set by the Punjab Government.

Rates:

  • PKR 1000 for every PKR 100,000 of authorized capital, up to a maximum of PKR 15,000.

This means that if your company has an authorized share capital of:

  • PKR 100,000, the stamp duty will be PKR 1,000.
  • PKR 500,000, the stamp duty will be PKR 5,000.
  • PKR 1,500,000, the stamp duty will be PKR 15,000 (this is the maximum).

2. Stamp Duty on Articles of Association

The Articles of Association are subject to a fixed stamp duty.

Fixed Rate:

  • PKR 1,000 (regardless of the authorized capital).

3. Additional Provincial Charges

In Punjab, there may also be some additional minor charges associated with the incorporation process, such as registration charges at the Provincial Excise and Taxation Department.

How much does it cost to register a logo in Pakistan

  • Filing Fee: PKR 2,000 (online) or PKR 3,000 (physical).
  • Publication Fee: PKR 3,000.
  • Registration Fee: PKR 9,000.
  • Renewal Fee (after 10 years): PKR 15,000.

This cost applies to registering a logo in one class. If you want to register your logo in multiple classes, you will need to pay the fees for each class.

For the latest information and updates on fees, you can visit the official IPO Pakistan website.

What is the minimum capital requirement for a private limited company in Pakistan

While there is no legally mandated minimum capital requirement for registering a private limited company in Pakistan, it is advisable to choose an authorized capital that reflects the size and scope of your business operations. Many companies start with PKR 100,000 as a reasonable amount for small- to medium-sized businesses.

What is form 29 in Pakistan

Form 29 in Pakistan is a statutory document that must be filed with the Securities and Exchange Commission of Pakistan (SECP). It is used to notify SECP of any changes related to the management of a company, such as appointments, resignations, or changes in the particulars of directors, the Chief Executive Officer (CEO), auditors, or other officers of the company.

When is Form 29 Filed?

Form 29 is required to be filed within 14 days of any of the following events:

  1. Appointment of Directors or Chief Executive Officer (CEO).
  2. Resignation or Removal of a Director, CEO, or company secretary.
  3. Change in Particulars of Directors, CEO, or Auditors (e.g., change in address, CNIC, etc.).
  4. Appointment or Removal of Auditors.
  5. Filling of Casual Vacancies: If a director resigns and a new director is appointed, it needs to be reported using Form 29.

Contents of Form 29:

Form 29 contains the following information:

  1. Particulars of Directors: Names, addresses, and CNIC numbers of the directors, CEO, or auditors.
  2. Appointment/Resignation Date: The date of appointment, resignation, or removal.
  3. Role or Designation: The position held by the person (e.g., Director, CEO, Auditor).
  4. Changes in Particulars: Any changes to the personal information or official position of the officers.
  5. Signatures: Signed by an authorized officer of the company.

Filing Requirements:

  • Form 29 must be submitted online via the SECP eServices portal.
  • It should be filed within 14 days from the occurrence of the event (appointment, resignation, etc.).
  • Late filing of Form 29 can result in penalties or fines from SECP.

Importance of Form 29:

  • It ensures that SECP is kept up to date with changes in a company’s management structure.
  • Filing Form 29 is crucial for maintaining compliance with corporate laws in Pakistan.
  • It also serves to maintain transparency and accountability within a company, making it easier for shareholders and stakeholders to track changes in leadership and management.

Failure to file Form 29 on time can lead to regulatory complications, fines, and penalties, so companies must ensure timely submission after any such changes occur.

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Blog

How to registered a company with FBR

by Muhammad Ahmad
written by Muhammad Ahmad

Registering a company with the Federal Board of Revenue (FBR) in Pakistan is an important step to ensure compliance with tax laws. After your company is incorporated through the Securities and Exchange Commission of Pakistan (SECP), you must register with FBR for a National Tax Number (NTN) and, if applicable, for Sales Tax Registration (STR). Here’s a step-by-step guide to registering your company with the FBR:

1. Get the Required Documents Ready

Before starting the registration process with FBR, ensure you have the following documents prepared:

  • Incorporation Certificate (from SECP).
  • Memorandum & Articles of Association.
  • Company’s bank account details (Corporate bank account).
  • Company’s NTN (if obtained previously).
  • Directors’ CNICs (Computerized National Identity Cards).
  • Office address and contact information.

2. Create an FBR Account

  1. Visit the FBR’s IRIS Portal: Go to the official FBR IRIS portal at https://iris.fbr.gov.pk/.
  2. Create an Account: If you don’t already have one, sign up by providing your company’s details. This includes the company’s name, email address, phone number, and contact information for tax purposes.
  3. Get an NTN (if you haven’t already): You can apply for an NTN for your company at the time of creating the account, or verify the company’s NTN if obtained during the incorporation process.

3. Apply for National Tax Number (NTN)

Once your account is set up, you need to apply for a National Tax Number (NTN) for your company. Follow these steps:

  1. Log into the FBR IRIS Portal using your credentials.
  2. Select “Registration” under the Registration tab on the dashboard.
  3. Complete Form 181 (Application for Registration):
    • In the “Taxpayer Type” section, choose Company.
    • Fill in your company’s information, including:
      • SECP Incorporation Certificate details.
      • Memorandum & Articles of Association.
      • Company’s address and contact information.
      • Details of the directors, CEO, and shareholders.
  4. Upload Required Documents:
    • Upload scanned copies of your Incorporation Certificate, Memorandum & Articles of Association, and Directors’ CNICs.
  5. Submit the Form: After filling out the form and attaching the necessary documents, submit it for FBR’s review.

4. Receive NTN Confirmation

  • FBR will process your application, and upon successful verification, you will receive a notification confirming your company’s NTN.
  • You can check the status of your application through the IRIS portal.

5. Sales Tax Registration (STR) (if applicable)

If your company is required to collect sales tax, you must also apply for Sales Tax Registration (STR). This is mandatory for businesses involved in the sale of taxable goods and services.

  1. Go to the IRIS Portal and select the “Sales Tax Registration” option.
  2. Complete the Sales Tax Registration Form:
    • Provide business details, including the type of goods or services your company deals with.
    • Add bank account information.
  3. Submit the Form: Once submitted, FBR will review your application and register your company for Sales Tax. You will receive a Sales Tax Registration Number (STRN).

6. Get STRN Certificate (if applicable)

Once your Sales Tax Registration is approved, you can download the STRN Certificate from the IRIS portal. The STRN allows you to charge, collect, and file sales tax returns.

7. Post-Registration Requirements

  1. File Regular Tax Returns:
    • You are required to file income tax returns (monthly or yearly, depending on your company’s turnover).
    • If registered for sales tax, you’ll need to file monthly sales tax returns.
  2. Maintain Proper Books of Accounts: Ensure your company keeps accurate financial records to comply with tax regulations.

Synopsis of Steps:

  1. Prepare necessary documents.
  2. Create an FBR account on the IRIS portal.
  3. Apply for NTN (National Tax Number) via Form 181.
  4. Receive NTN confirmation from FBR.
  5. Apply for Sales Tax Registration (STR) (if applicable).
  6. File regular tax returns and comply with FBR regulations.
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association of partnership
Blog

Registration of Association of Partnership in Pakistan

by Muhammad Ahmad
written by Muhammad Ahmad

Concept of Partnership:

A Partnership Firm formed under Partnership Act 1932 in Pakistan through which two or more person (maximum 20 partner) join together to commence a business to share profit and loss. Profit and loss are divided based on written Agreement signed between the Partners, which known as Partnership Deed. Despite SMC (Single Member Company) person prefer on Partnership due to profit and loss sharing.

Association of Partnership:

When a Partnership deed is formed and registered with relative department of government including submission of fee and mentioned principle activity in partnership deed and government approved the partnership under Partnership Act 1932 then this is called Association of Partnership (AOP).

Essentials of Partnership under Partnership Act 1932

  • Partnership Deed
  • Registration of Partnership Deed
  • Application Process
  • Fee Submission
  • Verification and Approval
  • Post Registration scenario

Importance of Partnership Deed

A partnership deed, also known as a partnership agreement or articles of partnership, is a legal document that outlines the rights, duties, and responsibilities of partners in a partnership. It serves as the foundational document that governs the operation of the partnership and helps to prevent disputes by clearly defining each partner’s roles and expectations. Here are the essential elements typically included in a partnership deed. In Private Limited Company we required Memorandum of Association and Article of Association while in Partnership we required Partnership deed.

Name and Address of the Partnership:

The deed should specify the name under which the partnership will operate. It should also include the principal place of business and addresses of all partners.

Nature of Business/ Principal Activity in Partnership

Describe the nature of the business or businesses that the partnership will engage in and deeply explain the principal activities of each partners.

Duration of Partnership

It is essential to explain in partnership deed whether the partnership is for a fixed term or is ongoing until dissolved by mutual agreement or other circumstances.

Capital Contributions:

Specify the initial contributions of each partner, whether in cash, property, or services. Outline how additional capital contributions may be made if needed.

Profit and Loss Sharing:

Detail the percentage or proportion in which profits and losses will be shared among partners. This can be equal or based on agreed-upon ratios or depend upon the capital contribution.

Management and Decision Making:

Partnership deed explain in detail to outline how decisions will be made within the partnership, including the authority and responsibilities of each partner in managing the business.

Drawing and Salaries:

Specify whether partners are entitled to draw funds from the partnership for personal use and how salaries or remunerations, if any, will be determined.

Admission and withdraw of Partners:

Partnership deed also explain the way out to add a new partner in the partnership and also describe the procedure by which a partner may withdraw the partnership.

Dispute Resolution between the partners:

Outline procedures for resolving disputes among partners, including mediation, arbitration, or litigation or any other method.

Dissolution and Winding Up the Partnership:

Specify the circumstances under which the partnership may be dissolved and the procedures for winding up its affairs, including distribution of assets and settlement of liabilities.

“Include any other specific agreements or provisions deemed necessary for the smooth operation of the partnership, such as non-compete clauses, confidentiality agreements, or insurance requirements etc”.

It’s important for the partnership deed to be drafted carefully and clearly understood by all partners to avoid misunderstandings and potential disputes in the future. Partners may seek legal advice when drafting or amending a partnership deed to ensure that it complies with relevant laws and meets the specific needs and goals of the partnership.

essentials of partnership
association of partnership

Requirement of Documents essentials for registration of Partnership as AOP:

  • Form-I or Form-A
  • Each partner’s– Full Name, Father or Husband’s Name, Residential Address, and copy of the National Identity Cards of each partner.
  • Partnership deed on non-judicial stamp paper of Rs. 1000/-. in case of Punjab and Rs. 2000/- in case of Sindh, A Partnership Deed is the document details of Partner’s rights and obligations participating in this Business.
  • Proof of the address of the business location, usually utility bills
  • If the business location has taken on, then the rent deed/Ownership document is required for address verification.
  • Original Deposit Slip of Partnership Deed Fee Deposited in National Bank of Pakistan.
  • Signature of all the partners on Partnership Deed along with two witnesses
  • Partnership Deed: The first step is to draft a partnership deed outlining the terms and conditions agreed upon by the partners. This document typically includes details such as the name of the partnership, business objectives, contributions of each partner, profit-sharing ratio, etc.
  • Registration: While registration is not mandatory for partnerships in Pakistan, it is advisable to register the partnership to avail certain legal benefits and protections. Registration involves submitting the partnership deed along with an application form to the registrar of firms in the relevant district.
  • Application Process: The application for registration must include the following information:
    • Name of the partnership
    • Place of business
    • Names and addresses of partners
    • Duration of the partnership (if fixed)
    • Date of commencement of partnership business
  • Filing Fees: There are prescribed fees for filing the application, which may vary depending on the jurisdiction.
  • Verification and Approval: The registrar will verify the documents and, if satisfied, will enter the partnership into the Register of Firms and issue a Certificate of Registration.
  • Post-Registration: Once registered, the partnership gains legal recognition, and partners can enforce their rights and obligations under the Partnership Act.

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