There are a lot of good reasons to start your own business in Pakistan. High population, low competition, and a rapidly growing economy provide you the best environment to start your own business.
When you decide to invest in a startup, the first question that comes to your mind is, how to register a company in Pakistan? That’s fine. There is a misconception that registering a company in Pakistan is a very complicated and tough process. As is have told you, it is a misconception.
In fact, the registration process is very easy and simple and you only have to follow the rules set by the Government of Pakistan. You have to get your company registered with the Security Exchange Commission of Pakistan according to the Companies Ordinance Act of 1984.
1. Things You Will Need to Register Your Company
Now to register your company in Pakistan, there are certain rules and regulations that you will have to follow. After all the research, I have devised a simple step by step guide to help you understand all the steps and the process involved in the registration process. You will have a clear idea of how the procedure works and what are the documents that you will need. Let’s go through the procedure step by step to simplify the things.
2. Get Your Company Name Approved First
Choose an attractive name for your company. However, keep in mind that it should be unique and different. There are a lot of registered companies and your company name should be identical or even closely resembling with the existing company names. If you have a deceptive or inappropriate name of your company, it will not get approval from the SECP. So, follow the criteria laid down for naming the company to get the approval as quickly as possible.
3. Fees and Document You Will Need
When you have decided the name of your company, you will have to acquire a name availability certificate from the SECP and for this purpose, you will have to file an application. Submit the required fee via bank challan in the designated bank branch.
Now the SECP will ask you to submit the following documents. Your declaration of compliance, identification of the office location, details of the directors, secretary, accountant and auditor, and a copy of the Memorandum and Articles of Association with each member’s signature.
4. Digital Signatures and Company Seal
After the submission of the required documents, the next step is to get a digital signature and make a company seal. The signature is granted by NIFT, National Institutional Facilitation Technologies. You can obtain it by using the E-services of SECP. You will get a certificate of incorporation.
After the issuance of the certificate of incorporation, you will be required to present a company seal depending on the city you are going to start your business. There are some cities that require the corporate seal, which is also referred to as the company seal.
5. Register For the Income, Sale, and Professional Tax
Now it is time to get yourself registered for income, sale, and professional tax. Let’s discuss them separately.
To register for income tax, you will have to apply for a National Tax Number, normally referred to as NTN. You will have to apply at the tax facilitation center of the Regional Tax Office(RTO) of the Federal Board of Revenue.
The documents you will need are NTN form, registration proof, Memorandum and Articles of association, bank account, copies of the National Identity Card, and the attestation of the business address. Similarly, for the sale tax number, apply at the tax facilitation center of the Regional Tax Office and for the professional tax, submit your documents at the Excise and Taxation Department of your District.
6. Get Registered With the EOBI and ESSI
Every company is with the people who worked there. Your employees are very important and they play the most important part of the development of your company. So, it is important to keep them happy and engaged.
To provide health and other financial benefits to your employees, register with the EOBI and ESSI. When you are registered with EOBI, your employees will be entitled to a pension on their retirement. It is mandatory for every company which has more than five employees has to be registered with the EOBI.
Similarly, social security institutions provide employees with much needed medical care for themselves and their family. A very important benefit for an average family. Both of these institutions are very important and beneficial for your workers, so, it is strongly advised to have these registrations.
7. Registration With the Labor Department
To safeguard the rights of the labors working in the companies and industries, every company has to be registered with the labor department in each district. They make sure that the workers are working in a healthy environment and they are getting paid accordingly. Inspectors from the labor department regularly visit the job sites to ensure safety and labor standards of the workers.
You will have to submit application form A accompanied with the fees in the form of bank challan.
8. Final Thought
Starting your own business is a great thing to have in today’s world. Secondly, there are so many opportunities in the growing economy like Pakistan. It is always better to stay in the legal framework set by the authorities. By following the steps I have mentioned above, you can easily register your company in Pakistan. Complete the documents that are required by the SECP and follow the simple steps to get your company registered.
If you still find it difficult to go through the possible a bit boring and difficult, there are a number of companies who handle the company registration process on your behalf. Get in touch with them and they will guide you about how to register a company in Pakistan and help you to register your company.