In this article we will discuss about the steps about how to register a company in Pakistan. This article will be helpful for those who want to start their new company and get it registered in Pakistan. The process of company registration is not complicated and one can easily get his company registered if he follows the steps and rules set by the government of Pakistan. In Pakistan companies register with the Securities and Exchange Commission of Pakistan (SECP), that is the only body granted the powers of company registration in Pakistan by the Government of Pakistan.
Register A Company In Pakistan Post Contains
- Availability Of Name
- Memorandum of Association
- Article of association
- Power of Attorney
- Documents Submission
- NTN/GST Registration
- Social Security Institutions
- Labor Department Registration
Steps to Register a Company in Pakistan
Following are the steps which they need to follow to register a company in Pakistan.
The 1st step towards company registration is the availability of the name. For this you need to submit an application to the registrar of companies for availability of the name and you need to get the name availability certificate from SECP to proceed further in the company registration process. You can make this application via online or in offline mode. Before making application to SECP for name availability certificate, please do the name search on SECP website and once the name is confirmed from the website then proceed in the process of name availability certificate or company registration process. SECP also introduce the service of “Fast track registration services” for those people who need to complete the process in quick/lesser time. If you choose an offline application in that case at the moment you need to submit Rs. 500 fee Challan to designated MCB/ UBL bank and if you want to process your case through FTRS then the fee for this process is Rs. 1500. You can submit the application online through eServices Portal of SECP and submit the application online, same as the offline services you can avail the service of FTRS for which you need to pay the extra amount, but the procedure time will be reduced. For normal application through online portal you need to pay Rs. 200 and if you are availing the facility of FRTS then you need to pay Rs. 700 to designated MCB/UBL bank.
After obtaining the name availability certificate you should proceed with preparing the documents which are required for the company registration process, below is the detail discussion of the documents which are required to be prepared.
Memorandum of Association is one of those documents which you need to prepare for registration of the company in Pakistan, it is the document in which you are stating your company’s objectives. You can mention your main objective in this memorandum of association, you can mention that basic objective of your company is that you will start your business in the field of general order supplier, trading company, stockiest or services whatever your purpose or aim of the organization you have to mention that in these documents.
Article of association is another document which you required to complete for company registration in Pakistan. In this document you will mention the rules of your company and you will also show the Organogram or the basic working model of the company you are intending to start. You have to mention that how the partners or managers will work and what is the power of each top level manager/director have.
Other than a memorandum of association and article of association, there are certain forms which may be required for registration, these forms may not be required for every company, but here we discuss all of those forms which may be required for any type of company registration process so it would be helpful for everyone.
This form is the declaration from a director or in case of sole proprietorship from the owner of the company. You can download this, Form 1 from the website of Securities and Exchange Commission of Pakistan website.
Form 29 is used for the appointment of chief executive of the company. This form is also used in case of appointment of an auditor of the company. This form can also be used for company secretary and your company can inform the SECP about the appointment through Form 29. If the company is appointing a legal advisor it can inform about such appointment through form 29.
Form 21 is used by companies to register the address of the company and if they need to change the address of the company then same form is being used. The Form 21 can also be used if the company is changing its office from one province to another province.
Form 26 is also used for to change the address from one city to another, but within the same province or if the company is changing its office from one province to another province of Pakistan but within 15 days.
If the company registration process is done by someone who does not have the authority in the company or who is not among the directors or owners, then the directors may need to issue a power of attorney in favor of that person so he can smoothly complete the registration process on their behalf without facing any issues. This person will also require CNIC photocopies of the directors/owners to proceed with the process of company registration.
After arranging and compiling all above mentioned documents, you need to submit these documents to registrar of of the companies. The registrar then checks the documents and where ever required get the confirmation from relevant authorities and when the registrar or SECP is satisfied with the documents which you submit, they will issue you the incorporation certificate of the new registered company.
The registration process of a company completes at this step and your company should have been registered with the relevant authorities if you process your case as per the procedure mentioned above. Now following are those registrations which are equally important for smooth operations of a company in Pakistan, these registrations can only be made if your company is registered with the relevant authorities as stated above. Below we will discuss some of the registrations which a company should have made for smooth operations.
Other than registration at SECP for your company you need to register your business with FBR and obtain a National Tax Number (NTN) for your company. Beside this depending upon the nature of your business, you may also require registration for General sales tax (GST). To register for Income tax, you need to apply for a National Tax Number (NTN) at the tax facilitation point of the Regional Tax Office (RTO) in your area.You can now also apply for NTN through online. If you are going for the registration of NTN at any RTO office or to FBR office, then the requirements for this application are:
- NTN form
- Proof of registration
- Memorandum and Articles of association
- Bank account number
- Copies of National Identity Cards (NICs) of companies’ Directors
- An attestation of business address
If you also required General Sales Tax (GST) number, you can also apply for this at the RTO office in your area, they will issue you certificates separately for both NTN & GST. Along with these two certificates you will also require a professional tax certificate for commencement of business operation. You have to get a professional tax certificate renewed by every year from the Excise&taxation office of your district. NTN and GST certificates once issued does not require any renewal, but you need to renew the professional tax certificate each year.
You also have to get your company registered with social security agencies of the provinces, this step comes after your company registered with designated authorities is complete, then you have to register your company with those agencies. If your company offices are located in Punjab then you have to get registered your company with “Punja employees social security institution (PESSI)”. This registration is basically a security for your company employees that you will follow the rules for labor set by the government and you can also use this as an attraction for your future employees, because when they see that you are registered with such institution they think that their rights as an employee will be safe in this company. If your company office/s located in Sindh province, then you have to register your company with Sindh employees social security institution (SESSI), if your company offices are located in Balochistan, then your company must be registered with Balochistan employees social security institution (BESSI) and in the same pattern if your offices are located in KPK, then you have to register your company with (ESSI).
Depending upon the decision of the management of the company, you can also register your company with EOBI. Employees Old Age Benefits Institution (EOBI) is a government institution, Those employees who are insured with EOBI by organizations are entitled to pension if their contribution is paid by their organizations for a defined period and after reaching a certain age limit.You can attract those people who are very concerned about their future at the age of retirement and they do not prefer private job because they think that government job provide security at the time of retirement, this registration of your company can allow you to attract and convince those to work for your organization because they will have Pension facility through EOBI at the age of retirement. While registering your company with EOBI you need to provide them complete information of your employees and you need to submit the updated informtion of your employees and their contribution history to EOBI on monthly basis. In most of the companies in Pakistan who are registered with EOBI, they take some amount from employees salary and they also make their contribution in to that amount (which is normally 4/5 times of that amount which is deducted from employees salary) and sumit this into National bank and then submit this challan to EOBI office or they can also update this on EOBI website online and they don’t need to submit the bank challan in hard form to EOBI office as it will automatically updated on the web portal if the company generated the bank challan through web portal. Company needs to add new employees in to that web portal and delete those employees from their list who are no more in their organisation.
In Pakistan every organization/company who have more than 2 employees and is registered with the relevant authorities as a company, is also required to register itself with labor department of the district where they have office/offices. They need to take this step to provide security to the labor standards/ rights as set by the government of Pakistan or by provincial governments. You need to follow a specific process to register your company with labor department of your district, everyone has their procedure for registering a company with them, you can check the process at their offices, but surely you need to fill a form and pay the fee into the bank to get your company register with the labor department.
This is the whole process to register a company in Pakistan, which you need to perform if you are thinking to start a business or you have a business plan. This process seems to be long and very complicated, but if you follow the instructions and have completely read this article it will become much easier for you to register your company in Pakistan. We have tried to cover every possible option in this article so it will become beneficial for those who wants to start their business and in need of registering a company. The steps written above and the procedure may be changed by the relevant authorities because it their discretion and they do have power for that, so it is recommended that each time you must check for the updated information about how to register a company in Pakistan from those authorities.