Pakistan is a country of over 200 million people and a rapidly growing economy. With a large population, a growing middle class, and a strategic location, Pakistan is an attractive destination for investors looking to do business in South Asia. In this article, we will walk you through the steps required to register a business in Pakistan.
Table of Contents
Decide on the type of business entity
The first step in registering a business in Pakistan is to decide on the type of business entity that you want to establish. The most common types of business entities in Pakistan are:
Sole Proprietorship: This is the simplest form of business entity, where an individual owns and operates the business on their own.
Partnership: A partnership is a business entity owned by two or more people who share the profits and losses.
Private Limited Company: A private limited company is a separate legal entity owned by shareholders. It offers limited liability to its shareholders, meaning that their personal assets are not at risk in case the company faces financial difficulties.
Public Limited Company: A public limited company is similar to a private limited company, but it can raise capital from the public by issuing shares.
Choose a business name
Once you have decided on the type of business entity, the next step is to choose a name for your business. The name should be unique, easy to remember, and not infringe on any trademarks. You can check the availability of the name by searching the online database of the Securities and Exchange Commission of Pakistan (SECP).
Obtain a National Tax Number (NTN)
To register your business, you will need to obtain a National Tax Number (NTN) from the Federal Board of Revenue (FBR). The NTN is a unique identification number that is used for tax purposes. You will need to provide your personal information, such as your name, address, and CNIC (Computerized National Identity Card) number, along with information about your business.
Register with the Securities and Exchange Commission of Pakistan (SECP)
Once you have obtained your NTN, the next step is to register your business with the Securities and Exchange Commission of Pakistan (SECP). You will need to fill out the necessary forms and provide the required documents, such as your NTN, your business name, and the details of your business entity.
Register for sales tax
If your business is involved in the sale of goods or services, you will need to register for sales tax with the Federal Board of Revenue (FBR). This will allow you to charge sales tax on your goods or services and file sales tax returns with the FBR.
Register for other taxes
Depending on the nature of your business, you may also need to register for other taxes, such as income tax, customs duty, and excise duty. You can consult a tax professional to determine which taxes apply to your business.
Obtain any necessary licenses and permits
Depending on the nature of your business, you may also need to obtain licenses and permits from various government departments. For example, if you are starting a restaurant, you will need to obtain a food license from the local health department. You can consult a business lawyer to determine which licenses and permits you need for your business.
In conclusion, registering a business in Pakistan can be a complex process, but it is necessary to operate your business legally in the country. Generis Global, our firm, can help you with the legal part of your business journey in this country. We have a team of experienced lawyers and consultants who can guide you through the process of registering your business and obtaining the necessary licenses and permits. Contact us today to learn more about how we can help you establish your business in Pakistan.