January 15, 2017

Registration of Company with Foreign Directors

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REGISTRATION OF COMPANY WITH FOREIGN DIRECTORS

Most of the queries received from International clients these days is whether it is possible to register company in Pakistan with foreign directors?

The answer to above question is yes, you can register a company in Pakistan with foreign directors but there are certain things that you may be aware of before you proceed with registration of company with foreign directors.

The first thing is to register the company with foreign directors you need the clear scanned copies of their passports.  Because for local directors we use National ID card number for Digital Signatures as well as for filing of documents which is not available for foreign directors so in their case the scanned copy of their passport is required.

The other thing required is their personal profile. Personal profile is same like resume whereaby all the history of a foreign person is written so that it can be assessed that whether he has the required capabilities to run the organization or not.

The last thing is an affidavit whereby it is stated by the foreign director that if he has not been security cleared by the Interior Ministry of Pakistan all his shares will be subsequently transferred to some other person.

For any person that is not National of Pakistan and wants to operate a business in Pakistan that person need security clearance from Interior Ministry of Pakistan. Such security clearance is directly been seek by the Securities and Exchange Commission of Pakistan once the documents for company registration are submitted.

Therefore an Affidavit is submitted by the foreign National that in case he is not given required clearance from the security agency he will not operate in Pakistan and appoint other person as the owner of those shares.

I hope that the above article provides an outline to the foreign directors however if you need any further information you can email us at contact@itnaconsultants.com or visit our contact us page.

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January 15, 2017

Company Registration with Foreign Directors in Pakistan

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Company Registration with Foreign Directors in Pakistan

Most of the queries received from International clients these days is whether it is possible to register company in Pakistan with foreign directors?

The answer to above question is yes, you can register a company in Pakistan with foreign directors but there are certain things that you may be aware of before you proceed with registration of company with foreign directors.

The first thing is to register the company with foreign directors you need the clear scanned copies of their passports.  Because for local directors we use National ID card number for Digital Signatures as well as for filing of documents which is not available for foreign directors so in their case the scanned copy of their passport is required.

The other thing required is their personal profile. Personal profile is same like resume whereaby all the history of a foreign person is written so that it can be assessed that whether he has the required capabilities to run the organization or not.

The last thing is an affidavit whereby it is stated by the foreign director that if he has not been security cleared by the Interior Ministry of Pakistan all his shares will be subsequently transferred to some other person.

For any person that is not National of Pakistan and wants to operate a business in Pakistan that person need security clearance from Interior Ministry of Pakistan. Such security clearance is directly been seek by the Securities and Exchange Commission of Pakistan once the documents for company registration are submitted.

Therefore an Affidavit is submitted by the foreign National that in case he is not given required clearance from the security agency he will not operate in Pakistan and appoint other person as the owner of those shares.

I hope that the above article provides an outline to the foreign directors however if you need any further information you can email us at contact@itnaconsultants.com or visit our contact us page.

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January 13, 2017

Buying Accounting software for small business

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Buying Accounting software for small business

One of the most important factors for success of any small business is to understand the accounting needs of the business and selection of right accounting software from the market.

For selection of right accounting software there are number of factors that needs consideration like what sort of analysis of accounting data is required for decision making, process and recording of transactions to produce required data and last and most important thing who is going to use the accounting software and level of expertise and skills. Therefore if you are planning to purchase a new accounting software in the market or asking the developer for customise accounting solution the costs related to train everyone in the organisation must be kept in mind. Furthermore if you are very small business like sole trader and do not have any employee you can even go for some online accounting software with single user license. But where most of the small businesses feel trouble is that the accounting software that is cheap are not fully in accordance with the needs of small businesses and are generalise so not only difficult to understand but does not provide hundred percent satisfaction.

After understanding of the situation completely we ITNA Consultants decided to provide the market and small businesses with such accounting software solutions that is customised according to each business need and at the same time fully affordable. Therefore two accounting software’s were designed one complete accounting software in Microsoft Excel and other ITNA Financials that we made customise completely before providing to any business.

Our idea is well appreciated by the market and within a period of one year hundreds of businesses around the globe started using our accounting software. Another proud factor for our team is that till the date we are the only company in the world that has complete accounting software in Microsoft Excel fully operational in hundreds of businesses with no bugs.

So if you are planning to start a small business and take our advise for ideal accounting solution please feel free to write us at contact@itnaconsultants.com

January 13, 2017

How to Change the Name of Company Registered in Pakistan

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COMPANY REGISTRATION IN PAKISTAN AND CHANGE IN THE NAME OF THE COMPANY

It happens sometimes that the company is somehow registered with the name that they later on found is not compatible with their business or decides to change the name for any other reason.

Therefore the companies’ ordinance, 1984 describes the reasons for which a company may change its name. These reasons are mentioned below for the reference:

  1. The first reason that companies ordinance, 1984 describes for change of name is if due to any reason or by mistake the company get registered with the name which is in contravention of the requirements of the companies ordinance, 1984 then the law permits the company to change its name.
  2. If the company wants to extend is business whether in Pakistan or any other country and it is believed that the name they already have is not suitable for the business then they are permitted to change the name of the company registered in Pakistan.
  3. Sometimes it happens that the company is purchased by another company then in that case they are allowed to re name the company.
  4. If there is a change in the management of the company and new management thinks that this name is not suitable then they are allowed to change the name of the company as per their liking.
  5. If the company is planning a new business and the name of the company is not suitable for that new business then the company is allowed to change its name.
  6. If the name of the company for any reason has lost its reputation in the market then the company has the option to change its name.
  7. The law also states that any other suitable reason that the securities and exchange commission of Pakistan thinks considers to be just they can permit the company to change its name.

Furthermore in certain cases the registrar of the companies is also allowed to direct the company to change its name within 14 days of the notice.

PROCEDURE FOR CHANGE OF NAME OF THE COMPANY REGISTERED IN PAKISTAN:

The first step of change of name of the company is to make an application to the registar of the companies for confirmation of the new name proposed that it is available and allowed to be registered.

Once the confirmation is received from the registrar of the companies the next step is to send a notice to all members of the company, that the company intends to hold a General Meeting of its members for the change of Name. Such notice shall be send to members at least 21 days before the meeting.

On the day of the meeting the members shall pass a resolution by not less than ¾ majority that the shareholders agree to the new name of the company.

After passing the resolutions the next step is filing of the copy of special resolution along with Form-26 with the registrar and thus the process of change of name of the company is completed.

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January 13, 2017

What are Borrowing Powers and restrictions on the Company Registered in Pakistan

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Company registration in Pakistan and borrowing powers and restrictions on the company

As per the provisions of the companies ordinance, 1984 the applicable law for companies registered in Pakistan every company after registration has the implied power to borrow money irrespective of any provision mentioned in the memorandum or articles of the company.

The method by which and rules and regulations for borrowing by company are mentioned in the articles of association of the company. Further if it is mentioned in the articles of association of the company that borrowing powers for the company are exercised by the Board of Directors of the company then in that case the amount of capital that the company can borrow through directors shall also be mentioned in the articles of association of the company.

Directors also have the right to delegate the powers assigned to them for borrowing to any one or more officers of the company.

Another important point to know at this stage is that the loans obtained by the company shall not at any time exceed the paid up capital of the company without approval by the members in the general meeting of the company.

Similarly Public companies are not allowed to borrow money before they obtained certificate to commence business from the registrar of the companies.

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January 13, 2017

Name Availability Guide for Companies Registered in Pakistan

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Company Registration in Pakistan and Name Availability Guide:

The most questions that we received on website with regard to company registration in Pakistan is what are the words that cannot be used in the name of the company or prohibited words as per companies ordinance that can be used in the name of the company.

Association:

Association is the word that can only be used for companies that are registered as Non Profit Companies or in simple words NGO’s or for Trade Organizations.

In other words Association word cannot be used for normal profit making Private Limited Companies.

Benevolent/Foundation

The above two words are also usable but only for Non Profit companies, NGO’s or Trade Organizations only and not for profit making private limited companies.

Society

This word society is also allowed by law to include in the name of the company but only if proper reason which is considered just by the registrar of the companies.

Holding

The word holding is also allowed as part of the name of the company if the company proposes to be registered as holding company under the definition of company’s ordinance, 1984.

Group

To be included in the name of the company this word has to be properly justified that the new company will be registered as part of the group of entities.

The above words description is prepared based on the queries we have received from our clients so far however there are many other words that are allowed to be included in the name of the company if proper justification is provided.

If you are not sure about the name of the company that you want your company to be registered kindly seek a professional advice from our consultants at Just PKR 1,000.

For further details please visit our contact us page.

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January 13, 2017

Trade Mark Registration in Pakistan and Intellectual property organisation

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Trade Mark Registration in Pakistan and Intellectual property organisation:

Trade Mark registry (TMR) is one of the prime body of Intellectual property organisation of Pakistan. Trade mark registry in Pakistan is regulated under Trade Marks Ordinance, 2001. Trade mark registry is basically a government body and it is assigned with the role of trade and services across the country. It has the working of similar to a civil court and in case of any objection the appeals are filed with the high court’s of provinces. Trade mark registry is supervised by a Registrar and the office of Registrar is in Karachi city.

Function of Trade Mark Registry

After the application of Trade Marks Ordinance, 2001 understanding about the importance of trade marks for businesses has increased tremendously. Trade Mark is also assigned with the role to create awareness among old and new entrepreneurs about the importance of trademark for businesses and the security and protection that adds to businesses with its registration. Trade Mark Registry has also created a separate helpline to address any queries in this regard.

Data Digitization Section of Trade Mark Registry of Pakistan (Index Section)

As soon as the application for registration of any trademark is received by the Trade Mark Registry office the role of this section of the Trade Mark Registry office begins. The basic role of this section of Trade Mark registry is to convert the application received into a digitalize form and issuance of acknowledgement against the receiving.

Examination Section of Trade Mark Registry of Pakistan (Eight)

The basic role of examination section Trade Mark Registry section is to examine the application received under the different categories of goods and services created and examine whether the application is submitted is in accordance with the prescribed criteria. If the application is found correct then it is accepted by the Registrar and is forwarded to the Journal section. If there are any objections in the application they are immediately conveyed to the application for correction and resubmission.

Journal Section of Trade Mark Registry

Journal section is responsible for publication of trademark journal.

Opposition Section of Trade Mark Registry

Opposition section of trademark registry office addresses any objections filed against the trademarks.

Registration Section of Trade Mark Registry

The section of Trade Mark Registry is responsible for issuance of trade mark registration certificate.

Post Registration Section of Trade Mark Registry

Post registration section deals with the any matters that arise after the publication of trade mark.

Renewal Section

Trade Mark once registered is valid for 10 years and afterwards renewed through this section.

Record Section

Maintenance of records of all trademarks is assigned to this section.

Legal Section

Legal section handles legal matters that arise in courts in case of dispites in trademarks.

Administration/ HR / Accounts Section

Deals with Admin, HR and Accounts matter

IT Section

IT section deals with IT infrastructure of Trade Mark Registry office.

January 13, 2017

What are different types of online ntn verification?

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What are different types of online NTN verification?

In Pakistan there are three different types of business registration possibilites:

1. Registration as Sole Proprietorship

2. Registration as Partnership Firm

3. Registration as Private Limited company

Online NTN verification service offered by ITNA Consultants provide you the chance  to verifiy the NTN of all  the types of businesses mentioned above. For further verification visit our online ntn verification  section.

January 13, 2017

Why online ntn verification is done?

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Why online ntn verification is done?

Online ntn verification is required for plently of reasons however one of the most important reason for verification  is when you do businesses with any registered entity in Pakistan it is important to verify its legal registration for the purpose  of calculation of Income tax to be witheld and any similar reason.

January 13, 2017

What is online ntn verification?

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What is online ntn verification?

Online ntn verification is the process whereby you can confirm the National tax number of any Individual tax payer, firm or company through online record of Federal Board of Revenue.

Federal Board of Revenue is the body responsible for maintaining the record of all the tax payers in the country.

January 13, 2017

How to Alter the Share Capital for Companies Registered in Pakistan

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Company registration in Pakistan and provisions regarding alteration of share capital

A company after having registration in Pakistan can alter its share capital subject to certain conditions which are mentioned as under:

First requirement for alteration of share capital is that the authority to alter the share capital must have been provided by the articles of association of the company or in simple words the fact that company can increase the amount of its share capital if it requires in future must be mentioned in the articles of association of the company.

Normally alteration in the capital of the company is made for following purposes:

Company registered tends to increase its share capital for any business purposes.

Company also alters its share capital if it intends to increase the per share value of its share capital or reciprocally to decrease the amount of share capital.

Company also has the powers to cancel any share capital which is not been agreed to be taken by any person.

The company before using any of the above mentioned has to place a resolution for such alteration before the general meeting of the members of the company and the resolution must be approved by the meeting by a majority of at least 2/3.

The company is also required to file a notice before the registrar of the companies that it intends to use any such powers to alter the structure of its share capital within 15 days of passing the resolution.

However the important thing to remember is that alteration of share capital should not in any way effect the patern of shareholding or in simple words if a shareholder owns 25% of the share capital before alteration, the same shareholder after alteration must have same voting power in the new capital structure.

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January 13, 2017

How to Transfer Shares for Companies Registered in Pakistan

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Company registration in Pakistan and provisions regarding transfer of shares

The mode for transfer of shares in a company registered in Pakistan is provided in the companies’ ordinance, 1984. According to the requirements of companies’ ordinance, 1984 the following factors shall be taken into consideration:

The mode for transfer of shares in company registered in Pakistan must be provided in the articles of association of the company.

As far as the application to the company for transfer of shares is concerned it can be made either by the transferor or the transferee.

No transfer of shares shall be allowed by the company until proper instrument for transfer of shares is submitted with the company.

If the original transfer deed in lost then company can still register the transfer of shares in favour of transferee if it is proved to the satisfaction of the company that original transfer deed is lost and application is made on the stamp paper with such declarations as the company may require.

Any person holding any share in the company has the absolute right as per the provisions of the companies’ ordinance, 1984 to transfer such shares unless such right has some restrictions in the articles of association of the company.

If there is no condition mentioned in the articles of association of the company that prohibits the shareholder from registering any transfer of share than company has no authority to refuse such transfer of shares.

The company shall as per the provisions of the companies ordinance, 1984 shall prepare and have ready for delivery share certificates within 45 days of application for registration of transfer of shares.

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January 13, 2017

What is Memorandum of Association for companies registered in Pakistan

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Memorandum of Association for the purpose of company registration in Pakistan

Every company requiring registration in Pakistan whether as Private Limited company, Public Limited company or any other form of company must prepare memorandum of association.

Memorandum of association of any company is basically the constitution of the company or a kind of foundation upon which the structure of the company is based.

The important thing to know is that a company once registered can only undertake those businesses that are mentioned in the memorandum of association of the company so all those businesses that the company proposes to take shall be mentioned in the memorandum of association.

The contents of memorandum of association of any company shall be in compliance with the companies’ ordinance, 1984. The memorandum of association should have following contents:

The name of the company that required registration and also whether it is a company limited by shares, limited by guarantee or any other form of business.

The place also specifying the province where the registered office of the company is going to be.

The basic objective of the registration of the company or in other words the reason why the company is to be registered and the business it is going to undertake.

In case the company is going to be registered as Private Limited company or any other form of company the fact shall also be mentioned that the company is limited company and that the liability of the members of the company is going to be limited up to the amount of unpaid capital in case of Private Limited company.

The amount of share capital shall also be mentioned in the memorandum of association with which the company proposes to get registered.

The distribution of the share capital into share of definite amount is also mentioned in the memorandum of association.

Every subscriber or shareholder mentioned in the memorandum of association of the company shall take at least on share it is not possible to take half share.

The number of shares each member of the company proposes to take shall write opposite to his name that how many shares have been taken by him.

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January 13, 2017

What are the Requirements with respect to Directors for Companies Registered in Pakistan

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Company registration in Pakistan and requirements with respect to the directors of the company

Directors are persons that have been given the responsibility for the management of the company. There are three different ways in which a person can be appointed as the director of the company. These are mentioned below:

First method of becoming the director of the company is that members of the company in general meeting appoint directors through voting.

Second method by which a person can be appointed on the board of directors of the company is by nomination of the person holding interests in the company. Normally Federal Government, Provincial Governments appoint nominee directors in the companies on the basis of their shareholding or investment in other company.

By appointment as the first director when the company was first formed.

Further companies’ ordinance, 1984 has specified the minimum numbers of directors that have to be appointed in order for the company to function legally these are mentioned below:

Single Member Company should have minimum and maximum one director only.

Private Limited company should have at least 2 directors.

Public company which is not listed on any stock exchange should have at least 3 directors.

Public company which is listed on any stock exchange of the country should have at least 7 directors.

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January 13, 2017

How much time is required for Company Registration in Pakistan

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COMPANY REGISTRATION IN PAKISTAN AND TIME OF COMPANY REGISTRATION

Most of the people are interested in knowing what is the exact time of company registration in Pakistan?

Well to be very honest it depends on the person who is trying to register the company. If you are a promoter and you are trying to register the company yourself of course there are quite chances that you make mistakes during the registration process and ending up wasting lot of time.

To be very honest one thing that I have learnt and also observed smart businessman doing effectively that  they are more focused towards doing their business and they are interested in earning more rather than saving.

Your focus should be your business and earnings and not how to save money. Handling with corporate matters and doing company registration is a specialize job and is to be handed over to the expert people. Second thing the consultancy rates in Pakistan are very low as compare to most parts of the world and are quite affordable.

So now let’s come back to the time of company registration. If you are an expert making an application to the registrar of companies for confirming the availability of name you know that what are they key mistakes that should not be made and how to exactly check the availability of a name from Securities and Exchange Commission Pakistan website. If you are good with it you will get a confirmation within 3 days.

Next step is submission of application to the NIFT for Digital Signatures. Do not make a mistake in this because it can significantly delay the process of company registration. In normal circumstances you will get the signatures in 2 3 days maximum.

Last stage submits documents of company registration upload them to Securities and Exchange Commission of Pakistan website and submit the challan to the designated branches of the banks. That’s it you will get the registration certificate after 3 to 5 days.

Summarizing we commit to our clients the time of around 10 to 15 working days for company registration.

This article is only for information purpose if you need specalise advice kindly send us an email at contact@itnaconsultants.com or visit our contact us page.

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January 13, 2017

How to vary shareholders Rights for Companies Registered in Pakistan

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Company registration in Pakistan and provisions with regard to the variation of the shareholders right:

The company registered in Pakistan that is interested in variation of the shareholders right has to follow the directions as provided in the section 28 of the companies’ ordinance, 1984.

The requirements are mentioned as under:

The alteration or variation of the shareholder can be made subject to the provisions of the companies’ ordinance, 1984.

The provision with regard to the variation of the shareholder rights is normally mentioned in the memorandum of association of the company and is only done subject to through variations.

Special resolution is required to be passed in the general meeting of the company in order to vary the rights of the shareholders right.

The last and most important condition for variation of the shareholder rights is that the resolution placed before the general meeting of the company must be passed by a majority of three fourth of the members or class of members affected by such alteration.

In case any aforesaid resolution is passed by the general meeting of the company 10% of the members or class of members affected by such alteration has the power to apply to the court within 30 days of getting the resolution passed.

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January 13, 2017

How to Transfer Shares to Nominee of Deceased Member for Companies Registered in Pakistan

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Company Registration in Pakistan and provisions regarding transfer of shares to nominee of deceased member

As per the provisions of companies ordinance, 1984 when a person acquires shares in a company, then he has the right at any time after such acquisition of shares in the company to submit a nomination with the company whereby he confer one or more persons the right to acquire the shares in the company in the event of his death.

Companies ordinance, 1984 further states that if such a nomination is filed with the company as mentioned above and at any time after deposit of such nomination the person who has submitted such nomination dies, then his nominee will be entitled to such shares in the company exclusive of any other person.

There are only two exceptions whereby the person in whose favor nomination was deposited is not entitled to such shares these are:

The person will not be entitled to any shares if such nomination is at any time canceled by another nomination filed with the company.

Secondly if some sort of contingency happens law explains the situation with the help of example that suppose the person in whose favor nomination was created predeceases the nominating person then such nomination to the extent of person who died becomes cancelled.

Another important thing about nomination mentioned in the law  is that only spouse, father, mother, brother, sister and son or daughter can be the nominees.

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January 13, 2017

Accounting Year for Companies Registered in Pakistan

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Company Registration in Pakistan and Accounting year

It is the requirement of Securities and Exchange Commission of Pakistan which is the regulatory body for registration of companies in Pakistan that every company must prepare its annual records on specified date. The period for which the accounts are prepared is called financial year. The period up to which accounts is prepared is called financial year.

Another term for financial year commonly used is called accounting reference period. The first financial year normally starts from the date of incorporation of company. In Pakistan financial year of the companies start from 1st of July and ends on the 30th of June. This is the same year which is taken by the Income Tax Authorities in Pakistan for assessment of Income Tax Year.

The Securities and Exchange Commission of Pakistan also allow the companies to have special tax year on request. Income Tax is calculated based on the performance of the company during the financial year.

The normal procedure for companies in Pakistan at the end of financial year is that at the end of the financial year company prepares its financial statements and calculate the profit earn during the year.

This calculated profit is certified by appointing external auditor. The Securities and Exchange Commission of Pakistan has made the law that if the company registered in Pakistan have the capital of PKR 3,000,000 or more then it is mandatory that they appoint a Chartered Accountant to conduct the audit of the company.

Once the audit is completed the same financial statements are then forwarded to the Income Tax Consultant for preparation of Income Tax Return. The rules for taxation are different from those applied during financial statements prepared using International Accounting Standards.

In Pakistan for companies having financial year ending on June 30 the last date for submission of Income Tax Return is 31st of December same year whereas if the financial year of the company ends on December 31 the last date for submission of Income Tax Return would be 30th of September.

This article is written only for information purposes if you require any further information about company registration in Pakistan and related matters please write us on contact@itnaconsultants.com

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January 13, 2017

Frequently Asked Questions for Companies Registered in Pakistan

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Frequently Asked Questions for Companies Registered in Pakistan

ANSWERS TO FREQUENTLY ASKED QUESTIONS REGARDING COMPANIES REGISTRATION AND RELATED MATTERS.

1. Which form of Business Registration is suitable for long term business in Pakistan?

The most suitable form of business registration in Pakistan for carrying out business is to get your business registered as Private Limited Company Registration. Investment is made in Private Limited Company in the form of equity shares which is divided among the share holders based on the investment made.

The basic requirements for Private Limited Company Registration in Pakistan are as follows:-

2. How long it takes to get Private Limited Company Registered?

Private Limited Company registration takes approximately 10-12 working days the breakup of the days is mentioned below:

Activity Days
Name Availability Application 4 Days
Digital Signatures of Directors 2 Days
Preparation & Submission  of Documents for Registration 2 Days
Liaison with SECP and Correction in case of discrepancies 3 Days
Issue and Collection of Certificate of Company Registration 1 Day

3. What is the Cost involved in Private Limited Company Registration?

The cost involved in company registration in Pakistan is depends on the Authorized Capital of the company. However, the approximate cost to get Private Limited Company registered  is PKR 10,000 – 14000 depends on the mode of registration and type of companies.

4. What are the requirements for the foreign companies operating in Pakistan?

Foreign companies operating in Pakistan are treated as local companies. Some of the basic requirements for foreign companies are as follows:

Foreign companies starting operations in Pakistan have to take approval from the Board of Investment of Pakistan before registration.

Company needs to maintain its Books of Accounts.

Company needs to gets its accounts audited from a Chartered Accountant firm in Pakistan.

Company needs to file its tax return with Federal Board of Revenue annually.

Income Tax rate for companies is 35%.

5. Is it possible for a company to be sole share holder & director of another Private Limited Company?

Since the basic requirement for registration of Private Limited Company is to have minimum of two directors. Hence the requirement needs to be full filled in order to get the company registered.  To overcome any such situation you can give 99% to shares to one shareholder and 1% to the other. The shareholder of a company can be another company but such company has to appoint a person to represent the company in meetings and for other purposes.

6. Is it compulsory for directors to be present in Pakistan to get the Private Limited Company registered?

It is not compulsory for directors to be present in Pakistan to get Private Limited Company registered.  Documents can be send through courier and the Securities Exchange Commission of Pakistan does not need the directors to physically appear in their office at any stage of company registration.

We have tried to answer few of the most frequently ask questions about company registration however if you have any question in mind feel free to ask our experts at This email address is being protected from spambots. You need JavaScript enabled to view it..”>contact@itnaconsultants.com.

January 13, 2017

Change of Name after company registration in Pakistan

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Change of Name after company registration in Pakistan.

Where a company after registration feels that the name of the company is not appropriate and it requires change then it has to follow the procedure defined in the companies ordinance, 1984 which is mentioned as under:

In order to change the name of the company the company has to pass a special resolution in the meeting of the members of the company. Special resolution means a resolution which is passed by at least 2/3 of the members of the company.

Once the resolution of change of name is passed by the company through requisite majority or by 2/3 of the total number of members of the company next step is to make an application to the registrar of the companies for availability of name.

Registrar of companies normally takes 3 to 4 working days to reply about name availability. Further companies’ ordinance, 1984 also mentions the fact that permission of registrar is not required if the only addition is that of the word limited upon conversion of public company into private company or wise versa.

Once the name of the company is confirmed to be change then the company should for a period of one year mention its old name along with the new name outside every office and place of business. Furthermore change of name of the company will not affect any legal proceeding that might have initiated against the company.

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January 13, 2017

Associated company registered in Pakistan

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Associated company registered in Pakistan

Section 2 of the companies’ ordinance 1984 has laid down the definition of associated companies. The article below is written within the guidelines of companies’ ordinance 1984 which is the applicable law for companies registered in Pakistan only. Therefore these rules are regulations are only applicable for companies registered in Pakistan.

Company Registered in Pakistan and Section 2 of companies’ ordinance 1984 that define associated companies and associated undertakings for purpose of companies’ ordinance, 1984.

As per the companies ordinance 1984 any two companies that are connected to each other in any of the following manner shall be deemed as associated companies registered in Pakistan.

If a person is connected to the company as owner, partner, and director or is currently holding or controlling 20% or more shares or controlling interest and also holds the similar interest in another company, then such two companies are considered associated companies within the meaning of companies’ ordinance 1984.

Another important point to mention here is that even if the shares are owned by the spouse or children they are considered for the purpose of this section be owned by the person.

Furthermore if there are two companies that are under common management they are also considered as associated companies for the purposes of companies registered in Pakistan.

Another important condition for companies to be considered as associated companies is that one company is subsidiary of another company.

There are certain exceptions with regard to companies registered in Pakistan to be considered as associated companies which are mentioned below:

If the person is appointed as director of various companies by any Government then that companies are not considered as associated companies registered in Pakistan for the purpose of companies’ ordinance 1984.

Similarly National Investment Trust and Investment Corporation of Pakistan holds shares in various companies in Pakistan. These companies are not considered as associated companies for the purposes of companies registered in Pakistan.

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January 13, 2017

Appropriate Courts in case of any kind of issues in Private Limited Companies Registration and Private Limited companies post registration matters?

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Appropriate Courts in case of any kind of issues in Private Limited Companies Registration and Private Limited companies post registration matters?

Private Limited companies after registration are regulated by company’s ordinance, 1984.  As per the requirement of companies ordinance, 1984 the court having jurisdiction in the matter of all types of companies including private limited companies is High Court.

However for private limited company and all other types of companies there is an exception that Federal Government may by notification in the official Gazette empower any civil court to exercise the powers. In other words if Federal Government thinks fit it can empower any civil court and in that case private limited companies and all other types of companies registered under this ordinance are dealt by the aforesaid court.

Another restriction imposed by the company’s ordinance, 1984 upon court is that any petition filed before it in the matter of private limited company or any other company is to be disposed of within 90 days.

Appeal against the orders of high court can be made to supreme court with certain exceptions.

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January 13, 2017

What are advantages associated with company registration in Pakistan

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Advantages associated with company registration in Pakistan

A common perception among people is that by registering their business as Private Limited company their business is going to progress very rapidly as compare to any other business. The perception in simpler words is completely wrong.

First thing while starting a business is not the company registration, the first thing to focus on is to have a workable business plan and idea that in your perception has enough strength to earn you sufficient income as per your plan.

Once planning and arrangement of capital is finalized next step comes to company registration. Company registration is in simple words is providing your business with legal cover. Private Limited Company registration limits the liability of your business up to the amount of capital with which the company is registered.

Other advantages associated with the company registration is explained as under:

Private Limited Company has Unlimited life

Registering your business as Private Limited Company gives it unlimited life because Private limited Company has unlimited business life as compare to sole proprietor or even partnership firm that dissolves immediately upon the death of any member or sole proprietor.

Private Limited company has Limited liability

Once your business is registered as Private Limited Company the liability of the members of the company in case  of any business loss or other issue is limited up to the amount of capital with which the company is registered. Whereas in case of Sole Proprietor or Partnership business registration the liability of the members is unlimited that means in case of any loss or related issue members will be personally responsible to make good the loss through their personal property and bank accounts.

Private Limited Company Registration Offers easy transfer of ownership

In Private Limited company the ownership is transferable from one person to another quiet easily under the guidance provided in companies ordinance, 1984.  Whereas Sole proprietorship can not be transferred and partnership business dissolves immediately upon death or any other issue with the partner.

Private Limited companies allow business names to develop as Brand Name

Private Limited companies once registered with a business name has the benefit that no other company can be registered with the similar name or even with the name that has close resemblance with the name of the company already registered.

Registration as Private Limited Company Offers tax benefits

January 13, 2017

What is the Procedure for Holding Annual General Meeting of companies Registered in Pakistan

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Company registration in Pakistan and procedure for holding Annual General Meeting of the company:

As per the requirements of the companies ordinance, 1984 in Pakistan every company is required to hold annual general meeting.

The first such meeting is to be held within eighteen months from the date of registration/incorporation of the company and after that aforesaid meeting is held at least once in every calendar year within a period of 4 months from the end of the financial year and not more than 15 months from holding the last annual general meeting.

In Pakistan companies have normally year end of June so therefore annual general meeting are normally held by the end of the month of the September.

However if for some reason company is not been able to held the meeting in the above mentioned time then in case of listed company the Securities and Exchange Commission of Pakistan and for other companies registrar of companies have the power to extend the time for holding such annual general meeting.

Further for the companies listed on the stock exchange the annual general meeting is held in the town where the registered office of the company is situated.

The last and most important requirement with respect to holding annual general meeting is that the notice of annual general meeting should be given to members of the company at least 21 days before the meeting.

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January 13, 2017

What are Statutory Returns for Companies Registered in Pakistan

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COMPANY REGISTRATION IN PAKISTAN AND STATUTORY RETURNS:

What is statutory Return is a question that is one of the basic questions we received on our website. In the below article I will try to explain about what is statutory Return so that as company owners you have better understanding.

A statutory return is any kind of for or document that is required to be filed with registrar of companies or Securities and Exchange Commission of Pakistan under various provisions of the companies ordinance, 1984

Statutory Return is normally like a form that contains basic information about the company depending upon the type of return. However once the return is filed with the registrar of companies it is a public document and anyone can view take and have knowledge about the company.

These Days Securities and Exchange Commission of Pakistan have provided the people with the option to file the returns both online and offline.

Just for further information purposes I would like to mention here that the period of filing returns is as under:

  1. First types of returns are filed immediately upon the registration of the company.
  2. The second types of returns are filed annually, half yearly and quarterly depending upon the type of company that is registered.
  3. The third types of returns are filed on the occurrence of some specific event such as appointment of new director or change of registered address of the company.

I hope that the above article has provided the sufficient information about what is statutory return with reference to company registration.

However if any further information is need you can email us. Please visit our contact us page for further information or clarifications.

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January 13, 2017

What are Different forms of Capital for Companies Registered in Pakistan

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Company Registration in Pakistan and different terms used with reference to share capital:

As director of the  company having registration in Pakistan understanding of different terms used with reference to the share capital of the company is inevitable. These different kinds of share capital are mentioned below:

Nominal or Authorized Capital:

Nominal or authorized capital for a company is that amount of capital which it is allowed to issue or in other words it is the maximum limit up to which company is authorized to issue its share capital.

Issued Capital:

Issued capital is the amount of capital which the company offers for subscription to the directors of the company Or it is the portion of authorized capital of the company which is actually been issued to the directors or promoters.

Subscribed capital:

Subscribed capital is that portion of the issued capital which is taken by the shareholders of the company.

Paid up capital:

Paid up capital of the company is that amount which is paid in the form of capital into the company or simply the amount received by the company as capital is called paid up capital of the company.

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January 13, 2017

How to Open Bank Account for Companies Registered in Pakistan

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COMPANY REGISTRATION IN PAKISTAN AND OPENING OF BANK ACCOUNT

The next step after company registration in Pakistan is opening of Bank Account in the Name of the company. For that there are various Banks Available in Pakistan both National and International. You can got to any Bank and ask them about opening a Bank Account in the name of the company.

All the Banks will ask you to bring documents of company registration before opening of Bank Account. The following documents are required by Banks for opening of Bank Account.

  1. Memorandum of Association of company registered in Pakistan
  2. Articles of Association of company registered in Pakistan
  3. Form 29
  4. Form 1

All these documents should have attested by the Securities and Exchange Commission of Pakistan. Further Bank Also require the a resolution passed by the Board of Directors authorizing the opening of Bank Account.

Lastly an application in the name of the Bank from the Directors requesting it to open a Bank Account.

To obtain certified copies of documents from Securities and Exchange Commission of Pakistan an application is made either  online or offline to the registrar to issue certified copies of the above mentioned documents for company registration in Pakistan.

After deposit of Application you have to submit the fee in the designated branches of Bank normally Muslim Commercial Bank only selected branches.

Once the fee is deposited the registrar issues the certified copies of documents which are later used for opening of Bank Account for company registered in Pakistan.

I hope the above article will add to your knowledge about company registration in Pakistan. However if you have any further question regarding any matter related to the company registration kindly email us at contact@itnaconsultants.com or visit our contact us page.

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January 13, 2017

Companies Registered with unlimited liability of members in Pakistan

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Company registration in Pakistan and unlimited liability of members

In Pakistan companies are registered under companies’ ordinance, 1984. As per the provisions of the companies’ ordinance, 1984 companies can be registered with unlimited liability of members. Further such companies may or may not have share capital.

Furthermore as per the provisions of companies ordinance, 1984 it is also possible that companies once registered with limited liability can be re-registered as companies with unlimited liability of the members of the company and vice versa. Companies’ ordinance, 1984 also states that if company registered with unlimited liability is re-registered as company with limited liability it shall not affect any debts, rights and liabilities contracted before such transformation.

Similarly companies ordianance, 1984 also provides that company can have directors with unlimited liability or in simpler words in case of any legal dispute even the personal assets of the directors can be held liable. However it is important that before any member of the company is recommended for appointment as director with unlimited liability such person shall be given notice of the fact that he will be appointed in the company as director with unlimited liability.

Similarly if the director with limited liability in the company is to be appointed as director with unlimited liability it is important that such director gives his consent to such appointment.

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January 13, 2017

What are the Conditions for Alteration in Memorandum of Association of Company

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Company registration in Pakistan conditions for alteration in memorandum of association

Company Registration in Pakistan Conditions for alteration in Memorandum of Association for company registered in Pakistan:

Companies registered in Pakistan are allowed to make alteration in their memorandum of association for the following reasons:

A company registered in Pakistan can make changes in its memorandum to carry on business more economically or more efficiently.

Registered companies in Pakistan can make alteration in its memorandum of association to attain its purpose by new or improved means.

Changes are also allowed in the memorandum if the company registered in Pakistan is proposing to enlarge the area of its operations.

A company can also make changes in the memorandum of association to carry on any other business which can be conveniently be carried with the existing business of the company.

Similarly modification can also be made in the memorandum of association of the company to restrict or abandon any business mentioned in the memorandum of association.

Changes are also made by companies in their memorandum of association to sell or dispose of whole or part of their business.

Sometimes changes are also made in the memorandum of association of the company registered in Pakistan to amalgamate its business with any other company.

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January 13, 2017

Company registration in Islamabad

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Company registration in Pakistan Islamabad

ITNA Consultants located in the heart of Islamabad offers company registration in Islamabad Pakistan for Just Rs. 30,000. This amount includes complete company registration fee of Securities and Exchange Commission of Pakistan, consultancy charges and one free set of certified copies of company documents.

With experience of more than 5 years in company registration in Pakistan Islamabad we believe that we have gone through the process of company formation of almost all types of companies in Pakistan including call centres, rice export companies, freight forwarders, engineering companies and much more.

We also understand that after company registration there are requirements of different bodies for obtaining licenses for operating in Pakistan and companies’ documents should be well drafted keeping in mind the requirements of such body to avoid any hassle during licensing phase.

We developed customise documents of the company including Memorandum of Association , Articles of Association and other supporting documents.

Professional Memorandum of Association is the first step towards company registration and serves as the representative of the company at plenty of places where no employee or stakeholder of company is present. Therefore understanding the importance of this key document in company registration we go into detail discussion with the company promoters to understand the current and future plans of the company.

Another important document during company registration is articles of association which is the operating manual of the company. All the methods to conduct the proceedings of the company such as appointment of directors, chief executive, execution of meetings of the company and similar formalities are addressed in articles of association. We are also well verse with development of this document and have provided this service to hundreds of satisfied customers in Pakistan.

So if you are looking to hire a professional organisation to register your company in Pakistan ITNA Consultants have all the right answers for you. For further details contact us at contact@itnaconsultants.com

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January 13, 2017

Company registration in Rawalpindi

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Company registration in Pakistan Rawalpindi

ITNA Consultants offers company registration in Pakistan Rawalpindi in Just PKR 30,000. This amount includes consultancy charges as well as applicable Government fee.

In Pakistan the registration of companies is regulated by the Securities and Exchange Commission of Pakistan. All types of companies whether Private Limited or Public Limited have to be registered with Securities and Exchange Commission of Pakistan before applying for license from any Government Body or authority.

The process of company registration normally takes the time of 10 to 15 working days. As in most parts of the world the process starts after selecting a reasonable name for the company which in the opinion of the registrar of the companies is not inappropriate.

Among documents submitted for company registration the two most critical are Memorandum of Association and Articles of Association.  Memorandum of Association is the document that describes the objective of the company registration. This document is drafted by us after close consultation with the clients keeping in view their current and future business objectives.

The other most important document for company registration is Articles of Association. An article of Association is the document that describes the rules and regulations for the company to operate. It is also prepared by ITNA Consultants after consideration of number of factors like number of directors, form of business and other key factors.

So if you are looking to register a Private Limited company in Pakistan Rawalpindi ITNA Consultants is the most reliable consultancy company with hundreds of companies benefitting from our company registration services across Pakistan especially Rawalpindi and Islamabad.

Our Office is located in Islamabad Capital Territory which is not more then 15 to 10 minutes drive from Rawalpindi.

For further information or any sort of query you can write us at This email address is being protected from spambots. You need JavaScript enabled to view it..”>contact@itnaconsultants.com.

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January 13, 2017

Companies Registered in Pakistan with Foreign Shareholder and Directors

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COMPANY REGISTRATION IN PAKISTAN WITH FOREIGN SHAEHOLDER AND DIRECTORS

The question that is received the most from International clients or people who are interested in investment in Pakistan is whether it is possible to register a company in Pakistan with foreign directors if yes then what is the procedure?

The answer to this question in simple words is yes you can register a company in Pakistan with foreign or non-resident directors but there are certain things that should always be kept in mind.

First when you register a company with foreign director there is a security clearance of each foreign director from Ministry of Interior. The process is same as for normal company but when we submit documents for company registration with Securities and Exchange Commission of Pakistan certain additional documents are submitted along with normal documents for company registration. These are related to the foreign shareholder and director of the company. The Securities and Exchange Commission of Pakistan then forward these documents to the Interior Ministry of Pakistan. The Interior Ministry of Pakistan as per their own procedures perform security check.

The company meanwhile is allowed to be register but subject to affidavit from the foreign director that if the Security clearance is not provided to the foreign director then such director will immediately resign and transfer his shares to another person.

Registration of company with foreign directors is little tricky as with our years of experience there are certain things that if done rightly could save your time and problems. Therefore if you need any professional advice or wanted to hire services for registration of company with foreign directors we have the required skills and experience.

For initial advice and quotation you can send us email at contact@itnaconsultants.com or visit our contact us page for further details and information.

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January 13, 2017

Court for companies registered in Pakistan

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Court for companies registered in Pakistan

Another important question with reference to the companies registered in Pakistan is in case of any legal dispute which court will have the authority to address the matter. This article will address the aforesaid issue for companies registered in Pakistan.

As per the provisions of companies ordinance 1984 the court considered to have jurisdiction in case of matters related to companies’ ordinance 1984 shall be high court having jurisdiction in the place where registered office of the company is situated.

Another point to consider here is that Government of Pakistan only Federal Government has the power that they can even authorize any civil court to exercise the jurisdiction of High Court with reference to any matter or matters for companies registered in Pakistan.

Last point to consider is in case of companies that have filed the application for winding up. As per the provisions of companies ordinance 1984 which is applicable companies law in Pakistan states that the registered office for the purposes of this section is place that have been registered office for the longest period for the six months immediately before filing an application for the winding up of companies registered in Pakistan.

Furthermore in all high courts of Pakistan Chief Justice of the high courts are ordered to create a special bench known as companies bench that will address all the matters relating to companies registered in Pakistan.

Courts are advised with respect to matters relating to companies ordinance, 1984 to dispose of the matter as early as possible. The deadline specified in this matter is 90 days it means in other words that petitions filed with high court with respect to companies ordinance 1984 should be disposed within a period of 90 days. Courts are advised in these matters to hear the cases on daily basis of companies ordinance matters however there are exceptions for extra ordinary circumstances. And in such circumstances the cases shall not be adjourned for more than 14 days at one time and more than 30 days during whole period.

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January 13, 2017

Easy winding up for company registered in Pakistan

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Easy Winding up of company registered in Pakistan

All the companies registered in Pakistan whether they are Private Limited Company Public company Limited or section 42 nonprofit companies registered in Pakistan. In this regard Securities and Exchange Commission of Pakistan has specified East Exit Regulation. All Companies can file for easy exit however there are exceptions for few companies registered in Pakistan. Details of the companies are mentioned with detail on Securities and Exchange Commission of Pakistan website however some of them are mentioned below:

  1. The companies registered as subsidiaries for listed companies can not avail these regulations
  2. Companies Registered in Pakistan as foreign companies also can not avail this regulations.
  3. The companies registered under Trade Organization Act of 2013 also can not avail these regulations.
  4. Also the companies having outstanding obligations towards Bank and utility companies can not avail these regulations.
  5. Also if the companies have disputes regarding shareholding and management they can not avail these regulations
  6. Further if the companies are found to be involved in illegal activities they cannot take the advantage of these regulations
  7. Companies registered in Pakistan as real estate or housing companies cannot take advantage of these regulations as well.

If the company registered in Pakistan is not from the above mentioned exceptions then they can file an application to registrar for striking of the name of their company on Form EE-I. A copy of resolution passed by the members in regard to winding up of company under easy exit regulations is also required. Furthermore a certificate from auditor is also required that include the details as prescribed by the Securities and Exchange Commission of Pakistan.

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January 13, 2017

Frequently Asked Question for companies registered in Pakistan with directors present outside Pakistan

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FAQ: Company registration in Pakistan with directors present outside Pakistan.

Q: Dear Sir, I am residing outside Pakistan and want to register a company in Pakistan, please guide me is it possible to register a company in Pakistan with directors present outside Pakistan, also provide me the details about time and cost of company registration?

Complete Answer is included for the reader’s reference:

Dear Zaheer Ahmad

First of all thanks for showing interest in our services.

As far as the company registration is concerned it is quite easy to register a company without visiting Pakistan. Company registration is basically a three step process and I need your signatures just at the second stage of company registration the detail process is mentioned as under:

Name Availability Application:

The first step in company registration is name availability application. The application is made to the registrar of companies. In order to make the application of name availability I just need a suitable name from your side. The process normally takes a time of around 3 to 4 working days.

I do not need signatures from you at this stage and name availability will be completed without signatures I just need your particulars to make application like Full Name, CNIC number and address in Pakistan of company.

Digital Signatures:

Once confirmation of name availability is received next step is to obtain digital signatures from NIFT for company registration. I will email you the forms of NIFT all you have to do is to take print of the form signed the form and send it to me via courier. For Private Limited company minimum 2 directors are required. Each director has to sign one form and then send me via courier.

The process of digital signatures normally takes a time of around 3 to 4 working days.

Submission of Documents for company registration:

After getting digital signatures the last step is preparation of documents that includes Memorandum of association, articles of association, form 1,21 and 29 of Securities and Exchange Commission of Pakistan and scanned copies of CNICs of directors.

If registrar finds above documents in order the certificate of registration is issued within a period of normally 4 to 5 working days.

Company Registration overall takes a time of 10 to 15 working days. Signatures are required only at one stage and in order to quicken the process I will email you forms and you can send me via courier after signatures.

Cost of Company Registration:

The cost of complete company registration process with 2 directors and 100,000 capital is Rs. 40,000. This amount includes all government fees and other charges.

We will provide following services in this amount:

1.            Company Registration

2.            Bank Account opening in the name of company

3.            NTN Certificate of Both the directors and company.

That means all your processes will be cover in this amount and you can start your business with all formalities complete.

I hope all your questions have been answered in detail. However if you require any further information in this regard you can contact me.

Assuring you the best of our professional services and corporate services at all times.

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January 13, 2017

What are Requirements for Selection of Name for Company Registration in Pakistan

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For company registration in Pakistan requirements for selection of the Name:

As soon as the promoters or proposed directors of the company make a decision for the company registration in Pakistan the next major step is to select a name that is appropriate for the business.

To register a name before company registration in Pakistan is compulsory for this reason an application for the availability of the name for company registration in Pakistan is made to the registrar of the companies.

For selecting a reasonable name following factors shall be taken into consideration:

Promoters or proposed directors intending to do company registration in Pakistan should select a name that in the opinion of the commission is not inappropriate of deceptive.

To do company registration in Pakistan the proposed name of the company should not be designed to exploit the religious susceptibilities of the people.

For company registration in Pakistan name should not be identical with the name of the company already registered.

For proper company registration in Pakistan the proposed name of the company should not have close resemblance with the name of the company already registered.

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January 13, 2017

How to do Private Limited company registration in Pakistan?

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How to do Private Limited company registration in Pakistan?

Although many detailed articles are present on the website that explain the process of company registration in Pakistan. However based on the feedback received from our clients this article will summarize the process of company registration in Pakistan.

The process of company registration in Pakistan is explained below:

Name Availability Application

The first step in company registration is to make an application to the registrar of companies for confirming the name selected is available and he has no objection with respect to the name applied.

Application to NIFT for Digital Signature

The next step is to make an application to the NIFT for allotting the digital signature of each director of the company. Separate application is made for each director.

Submission of documents

Once the digital signature for each director is received the next step is to prepare and submit following documents for company registration.

Memorandum of association

Articles of association

Form 1

Form 21

Form 29

Name Availability Letter

ID Cards scanned

Submission of fee for company registration

Once all the above documents are submitted for company registration the last step is to submit the fee for company registration which depends on the amount of capital.

After submission of fee normally after 4 to 5 days we receive confirmation from the Securities and Exchange Commission of Pakistan of company registration if they have no objection on the documents submitted and they find documents complete and in order.

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January 13, 2017

How to register company in Pakistan?

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How to register company in Pakistan?

One of the most common questions in the mind of young entrepreneurs is how to register company in Pakistan, what are the issues we have to face, what are the associated costs and how much time it will take to register company in Pakistan.

I know the sources of information lack in Pakistan especially regarding the Government registration processes etc. In these articles I would like to give you some basic information about how to register company in Pakistan?

The best option for registration of company in Pakistan is to register your business as Private Limited Company. First I would like to explain what is the meaning of Private Limited Company? A Private Limited Company or in other parts of the world known as Limited Liability Company is the type of company in whereby the liability of the directors of the company is limited up to the capital of the company.

I will use an illustration to make this concept clear Let us suppose there is a company with the name of XYZ Private Limited and there are two directors Mr. A and Mr. B. The company is registered with capital of 100,000 Pakistani Rupees and company in current date has assets of 200,000 PKR. All of a sudden some legal case happens on the company and Honorable Court orders that the company should pay a fine PKR 1000,000 and then it is to be wind up. In this company the court will only recover the amount of capital of the company and all assets that are PKR 300,000 and no personal assets or Bank Accounts of the directors will be used to recover the remaining amounts of PKR 700,000.

This is the concept of Limited Liability Company. It is for me the best and most suitable form of business registration for long term businesses.

Regarding the process, time and cost of company registration please visit the section of company registration in Pakistan on our website it has all the details and information relating to the company registration.

If you are interested in company registration through us please send an email to us contact@itnaconsultants.com and one of our representatives will get to you shortly.

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January 13, 2017

IDEAL ACCOUNTING SOFTWARE FOR SMALL BUSINESS: ACCOUNTING SOFTWARE FOR SMALL BUSINESS:

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IDEAL ACCOUNTING SOFTWARE FOR SMALL BUSINESS:

ACCOUNTING SOFTWARE FOR SMALL BUSINESS:

ITNA Financial being the only accounting software for small business developed by the expert accountants with experience in programming skills stands ahead from any other accounting software’s on number of factors:

Only Accounting Software for small business developed by accountants:

All other existing accounting software in the industry is mostly developed by the programmers under the instructions from expert accountants. However one of the biggest drawbacks in those small business accounting software’s is the communication barrier that exist between accountants and programmers and thus the result is evident in the software then why they use the software they feel the number of factors were ignored and left un touch.

ITNA Consultants been the only reputable accounting software developers in the market took the pain to overcome this communication barrier. Our expert accountants took the burden and themselves learnt the programming languages understood the dynamics of programming, limitation of languages and then got involved in the development of a software ideal for small business that has the capability to be fully customizable and covered all the possible areas that as an accountant you feel the software to address.

Customization Capabilities:

Most of the biggest accounting software developers have primary focus towards biggest business and industries and therefore they try to develop generalise accounting software for small business that can be used by any industry. We believe that such software’s are probably be adverse for any small business as they mostly lack expert accountants and therefore such software’s can result in almost disasters for small businesses.

ITNA Consultants being the company with prime focus on small businesses have developed the software keeping in mind that each small business has different needs and therefore in order to address the issues we have to customise the software as per the requirements of the client. Therefore with ITNA Financials we guarantee you the customization of accounting software till solutions of your problems.

Cost Effectiveness:

ITNA Financials is quite cost effective as compare to any other software in the market. We can guarantee you that our prices will be much lower than any other existent accounting software developers in the market.

For further details about ITNA Financials demo, presentation, quote or any other related query feel free to contact us at contact@itnaconsultants.com.

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January 13, 2017

Importance of accounting software for small business

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Importance of Accounting Software for small business:

Accounting is basically the art of keeping the record of transactions of any business in such a manner that timely and effective information is obtained to be use in decision making for effective operations of business. This act is also commonly known as bookkeeping.

Bookkeeping is no doubt one of the most important activities for any business and every successful business maintains accurate record of the transactions of the business in an organised manner.

In modern world this act of bookkeeping has developed into an effective decision making tools that not only assists while taking the decision but a source of advantage over competitors as well.

With this changing trend of bookkeeping and understanding of the owners about importance of proper and managed bookkeeping the use of accounting software has also increased tremendously.

Although understandably accounting software for a small business is a huge step however in no way this denies the benefit that small businesses could avail through use of accounting software’s.

Is the issue addressed properly for small businesses?

The fact the modern world is using accounting softwares on daily basis to manage their businesses effectively cannot be denied  however since the paying capacity  of small businesses is quite low as compare to the  large companies and organisations the focus of most of the developers was on large organisations. For small businesses the idea was to develop a general accounting software so that small businesses of different nature and kind can use it with little customisation for their own businesses.

That’s where the ITNA Consultants emerged and it is proudly the only organisation on the globe that has focus only towards small businesses. The software is called ITNA Financials. The sincerity and hard work of ITNA Consultants professionals is well understood by the clients with their really positive replies.

ITNA Financials is completely customizable for any business and first customization is offered by ITNA Consultants completely free of cost.

So if you are looking for a reliable and customizable accounting software feel free to contact us at contact@itnaconsultants.com or visit our contact us page.

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January 13, 2017

Legal Aspects of company registration in Pakistan

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Legal Aspects of company registration in Pakistan

Pakistan in one of the most lucrative place for investment today because of the cheap and larger quantity of labour in the country. More and more investors have shown their interest in stabilising business in Pakistan.

However as in most parts of the world Pakistan has also three forms of legal business registration. First form of business registration is formation as sole proprietor or sole trader registration. To register your business as sole trader or proprietor in Pakistan you have to file an electronic application with the Federal Board of Revenue which the prime and only body chartered to collect and manage taxes in Pakistan. Registration of business as sole proprietor is a simple process and sometimes even completed within a period of one week or so. At the end of the process a certificate is issued by the Federal Board of Revenue whereby the name of the owner along with the Business name is mentioned in the certificate which is also called the National Tax Number Certificate.

The other form of business registration is Firm registration in Pakistan. To register your business as firm at least two partners are needed that form a partnership deed that covers all the basics of operating the business including the distribution of profits and losses. The registration of firm is the authority of the registrar of relevant district and each district has its own registrar that issues certificate of firm registration. However, once registered the firm is free to operate in any part of Pakistan for business purposes.

The other form of business registration is company registration in Pakistan. Company registration in Pakistan is the authority of Securities and Exchange Commission of Pakistan. All forms of companies i.e. Private Limited Company registration known as Limited Liability Company in most parts of the world, company limited by Guarantee registration in Pakistan and Public Limited companies are registered with Securities and Exchange Commission of Pakistan. Most of the people prefer for company registration in Pakistan as the risk of business is minimize up to certain extent with doing your business after company registration in Pakistan. Company registration in Pakistan is fairly simple process and can be easily completed within a period of 10 to 15 working days. At the end of registration process a certificate is issued by the Securities and Exchange Commission of Pakistan which is the evidence of company registration in Pakistan.

ITNA Consultants are expert in all forms of business registration but we give special discounts for the business trying to register themselves as company. Company registration in Pakistan is a simple process yet there are few key factors that we believe need to be considered before company registration in Pakistan. For all forms of business registration including company registration in Pakistan feels free to contact us at contact@itnaconsultants.comThis email address is being protected from spambots. You need JavaScript enabled to view it..”>.

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January 13, 2017

Memorandum of Association for the purpose of company registration in Pakistan

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Memorandum of Association for the purpose of company registration in Pakistan

Every company requiring registration in Pakistan whether as Private Limited company, Public Limited company or any other form of company must prepare memorandum of association.

Memorandum of association of any company is basically the constitution of the company or a kind of foundation upon which the structure of the company is based.

The important thing to know is that a company once registered can only undertake those businesses that are mentioned in the memorandum of association of the company so all those businesses that the company proposes to take shall be mentioned in the memorandum of association.

The contents of memorandum of association of any company shall be in compliance with the companies’ ordinance, 1984. The memorandum of association should have following contents:

The name of the company that required registration and also whether it is a company limited by shares, limited by guarantee or any other form of business.

The place also specifying the province where the registered office of the company is going to be.

The basic objective of the registration of the company or in other words the reason why the company is to be registered and the business it is going to undertake.

In case the company is going to be registered as Private Limited company or any other form of company the fact shall also be mentioned that the company is limited company and that the liability of the members of the company is going to be limited up to the amount of unpaid capital in case of Private Limited company.

The amount of share capital shall also be mentioned in the memorandum of association with which the company proposes to get registered.

The distribution of the share capital into share of definite amount is also mentioned in the memorandum of association.

Every subscriber or shareholder mentioned in the memorandum of association of the company shall take at least on share it is not possible to take half share.

The number of shares each member of the company proposes to take shall write opposite to his name that how many shares have been taken by him.

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January 13, 2017

Name of the Government Body for company registration in Pakistan?

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Name of the Government Body for company registration in Pakistan?

In Pakistan companies are registered with Securities and Exchange Commission of Pakistan. The offices of the commission are located in every major business city of Pakistan.

All types of companies such as Private Limited company, Public Limited company, Non Profit Company and Single member companies are registered with Securities and Exchange Commission of Pakistan.

Similarly records of all the companies are also maintained by the Securities and Exchange Commission of Pakistan. The record of every company such as Memorandum of Association, Articles of Association and other forms required by the Securities and Exchange Commission of Pakistan are the public documents and can be inspected by any person on payment of prescribed fee. The current fee for file inspection is Rs. 500.

Other forms of business such as Sole Proprietor and Partnership firms are not registered with Securities and Exchange Commission of Pakistan. Sole Proprietorship is registered with Federal Board of Revenue whereas the Partnership business is registered with the registrar of firms present in each District.

All three different types of businesses have different legal and tax implications and decision is dependent on the type of business that one is interested in starting.

If you require similar advice for the form of business suitable for your business need you can contact us at contact@itnaconsultants.com.

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January 13, 2017

Need of Accounting Software for Small Business

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Need of Accounting Software for Small Business

Accounting software is the backbone of any small business. I understand that most of the small business owners before starting the business would not agree to this point but at the same time I am quite sure that my view is well supported by old and successful entrepreneurs.

I will justify my point in next few lines and I believe after going through that you would also agree to the importance of accounting software for small business. According to a survey most of the in fact more than fifty percent of the small businesses failed because of poor planning, miscalculation of profits and worst understanding about the actual profit and loss situation.

As a young entrepreneur the resources are very limited and every person tries to spent maximum of that towards marketing and other business development projects. However at the same time the importance of balance of resources between business development and business operations is ignored. Why this happens? Most of the people at this stage would not be sure of the exact reason but I after having successful business run with ever increasing profits reached the point that my decisions were more accurate, timely and effective when they were backed by exact information about the cost and other factors. From where I got this information one of the major sources of this information was my accounting software.

Keeping in view this situation I decided to establish accounting software that can also help new young entrepreneurs with their decision making. ITNA Financials was developed as the result which is one of the most used accounting software for small business in the world. Its sales have increased every by year and our team is really proud of this ideal accounting software for small business.

If you require any further information you can contact me at contact@itnaconsultants.com

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January 13, 2017

Private Limited Company Registration Advantages:

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Private Limited Company Registration Advantages:

Private Limited Company Registration Advantages:

Before discussing the advantages of business registration as Private Limited Company it is necessary to understand what is a Private Limited company?

Every company when registered anywhere in the world has to specify that how much capital the owners of the company are going to invest in the company. This amount is known as the capital of the company for registration purposes. It is not necessary that all the capital is invested in the form of cash but sometimes people also contribute by providing their personal assets to the business such as car, land and other similar things.

When the documents are submitted for registration of company it is necessary to mention this amount. Second thing to understand is that every company that is registered in Pakistan is a separate legal person within the eyes of law it means that all the assets and liabilities of the company belong to it.

Now what is the meaning of word Private Limited that means in simpler words that suppose due to some incident the company is punished with an amount of Rs. 200,000 but the original capital of the firm is Rs. 100,000. So in that case company is liable to pay only Rs. 100,000 because the liability of the company is limited up to the amount of capital and no personal assets of the directors shall be taken into custody for settling any claim of any creditor.

Hence Private Limited Company is the safest form of business registration.

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January 13, 2017

Private Limited company registration in Pakistan and associated advantages

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Private Limited company registration in Pakistan and associated advantages

Private Limited company registration in Pakistan and associated advantages

Limited Liability:

This is one of the most important and can be deciding factor while considering the form of business ideal for your needs. Starting new business has many risks involved in fact most of the people invest their whole life savings when starting a new business. Therefore it is quite important for any young entrepreneur to limit the risk involved in starting the new business. The risk is best secured through registration of company as private limited or Limited Liability Company. It means that if for some reason the business completely turn out to be unsuccessful the owners of the company or directors will not be liable to contribute beyond the capital of the company with which it is registered. The payment to any creditors of the company or any other person having legal claim on the company shall be liable only to the extent of the capital with which the company is registered.

Taxation:

Private Limited companies’ taxation structure is quite different from that of sole proprietors or partnership firms. Selection of right form of income tax structure can affect a lot towards the actual income tax paid at the end of year.

Name Reservation Advantage:

Registering your business as Limited Liability Company or private limited company provides you with the security of the business name. In simple words as per the provisions of the companies ordinance, 1984 which is applicable law for companies operating in Pakistan no company shall be allowed to register in Pakistan if it name has similarity with the company already registered. This advantage is clearly not provided to sole traders/proprietors or partnership firms and two sole proprietors can be registered with the same name and same is the case for firm. Therefore good will of the business is always at sake if you business is not registered as private limited company.

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January 13, 2017

PROCEDURE FOR TRANSFER OF SHARES FOR COMPANY REGISTRATION IN PAKISTAN OR HOW TO TRANSFER SHARES FOR COMPANY REGISTRATION IN PAKISTAN

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PROCEDURE FOR TRANSFER OF SHARES FOR COMPANY REGISTRATION IN PAKISTAN OR HOW TO TRANSFER SHARES FOR COMPANY REGISTRATION IN PAKISTAN.

Before I go into detailed process of how to transfer shares for company registered in Pakistan let me first explain for purpose of understanding what the meaning of transfer of shares is:

First see the below two definitions for understanding purposes

Transfer in law means an act through which the property is transferred from one person to another.

Whereas

Transmission means the act through which the title of the property is transferred from one person to another through operation of law.

So transfer of shares means the procedure through which the shares from an existing shareholder is transferred from one person to another normally for some consideration whereas if such transfer is initiated through some act of law then it will be called as transmission and not transfer.

Under law all the shareholders of the company have the right to transfer their shares as and when they like except if the transfer of shares is explicitly denied by the articles of association of the company then it is not possible.

Now let us see the relevant provisions of the companies ordinance, 1984 regarding the transfer of shares and debentures:

The first relevant provision with regard to transfer of shares in the company states that every company has the right to transfer it shares in case the application is made. The transfer shall me made within 45 days from the date of application.

When a person submits to the company the share transfer deed and the company finds any deficiency in the trust deed the company shall notify within 30 days of any problem identified in the share transfer deed.

However if any different provisions are stated in the Articles of Association of the company that shall also be taken into consideration in fact they are going to supersede this process of transfer of shares.

The process for Transfer of shares for Company registered in Pakistan:

  1. Preparation of Share Transfer deed and submission with the company in case of Private Limited Company.
  2. The company only proceeds to transfer the shares if the transfer deed is proper and is duly executed by the transferor and the transferee.
  3. Approval from Board of directors confirming the transfer of shares.
  4. Changes in the Memorandum of the company stating the new pattern of shareholding against each member.
  5. Reporting the transfer of shares on the prescribed forms is the next and last step for transfer of shares.

If you want to hire our services to transfer shares in the company kindly send us an email at contact@intaconsultants.com or visit our contact us page for further information.

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January 13, 2017

Procedure of Reduction of Share Capital

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Procedure of Reduction of Share Capital

The Procedure for Reduction of Share Capital.

How to Reduce Share Capital of the Company

After company registration if any time the directors or members of the company decide that they want to reduce the share capital of the company following procedure should be followed as per the articles of companies’ ordinance, 1984:

  1. Un-paid share Capital

After company registration if a company may extinguish or reduce its liability on unpaid shares by reducing the capital to that extent.

  1. Lost or un-represented by assets of the company:

After company registration if some of the assets of the company is lost for example due to fire the capital of the company does not reflects such assets and therefore in such conditions the company may opt for reduction of share capital.

  1. Excess Capital:

After company registration if at any time the company feels that any paid up capital is in excess of its wants it may opt for reduction of such capital.

After Company Registration the procedure for reduction of share capital is as under:

  1. The directors of the company consider the proposal of reduction of share capital in their meeting and pass a resolution in this regard. The resolution should mention the amount of authorized capital, no of shares and reasons as to why company wants to reduce its share capital after registration.
  2. The next step is directors of the company call a meeting of the shareholders to pass a resolution for reducing the share capital. Notice of meeting shall be sent to the members at least 21 days before the meeting. If at the time of company registration the company was registered as listed company the aforesaid notice shall also be published in at least 2 newspapers circulating in the province where the stock exchange at which the company is listed is situated.
  3. The resolution for reducing share capital is discussed in the meeting and should be passed by a resolution of at least ¾ of the members of the company.
  4. Copy of special resolution is filed with the registrar on the concerned form 26.
  5. Consent of the creditors is obtained.
  6. Petition is filed to the court for order confirming reduction.
  7. Advertisement for reduction is published in newspaper on the direction of the court.
  8. On confirmation from court the following documents are filed with registrat.
  9. Certified copy of the order of the court
  10. Copy of special resolution on Form 26
  11. Amended copy of Memorandum and Articles of Association with new minutes forming part.
  12. Bank Challan as required by Securities and Exchange Commission of Pakistan.

Stock Exchanges are informed about the reduction of share capital.

Alteration shall be mentioned in all subsequent copies of memorandum and articles of association.

Words and reduced shall be added for one year or any other period if fixed by the court to the name of the company.

January 13, 2017

Process of company name reservation for company registration in Pakistan

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Process of company name reservation for company registration in Pakistan

The Process of company Reservation for Company Registration in Pakistan

The process of company registration in Pakistan begins with reservation of company name. For this reason the promoter or the person initiating the process of company registration in Pakistan has to apply for the availability of name for company under Section 37 of the companies’ ordinance, 1984 of Pakistan.

Before making an application for company registration name reservation it is always advisable to check online from Securities and Exchange commission of Pakistan website whether the name is available for the new company or not.

There are certain things that always should be kept in mind before applying of name reservation for the company to be registered in Pakistan, the name applied should not have close resemblance to name o existing company registered in Pakistan.

Secondly the name of the proposed company to be registered should not be closely resembling with existing name of the company already registered in Pakistan.

The current database of Securities and Exchange Commission of Pakistan has more than 60,000.00 filings of existing company names. Furthermore the Securities and Exchange Commission of Pakistan also has list of prohibited words that cannot be added to the company to be registered in Pakistan.

There are commonly two methods for making an application for the company registration in Pakistan. The first method is online application and second method is offline. Furthermore in case of urgent requirement application can be made through Fast Track whereby you can receive the confirmation within 4 hours of making the application.

When making offline application, the application is addressed to Additional, Deputy or Assistant Registrar of companies for confirmation of the company name to be registered in Pakistan. Securities and Exchange Commission of Pakistan has prescribed MCB and UBL as the banks for submission of challans for company registration in Pakistan.

For making online application you have to create a login name and password at Securities and Exchange Commission of Pakistan website and thereafter a form is required to be filled with required information. At the end of the process a challan is generated that needs to be submitted to prescribed bank for further processing of company registration in Pakistan.

Once the name if confirmed the requester can proceed with the next step of company registration in Pakistan that includes preparing of Memorandum and Articles of Association of the company.

If you require any further information with reference to name reservation process of company registration in Pakistan you can visit our contact us page.

January 13, 2017

Provisions for registered office for the company registration in Pakistan

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Provisions for registered office for the company registration in Pakistan

Provisions for registered office for the company registration in Pakistan:

The provisions of companies ordinance, 1984 relating to companies registered in Pakistan are as follows:

A company registered in Pakistan should have a registered office address within 28 days of obtaining certificate to commence business in case of public limited company and in case of company registered as Private limited company from the date of its incorporation the company should have a registered office.

It is the responsibility of every company having registration in Pakistan to communicate the place where its registered office is situated to the registrar within 28 days of getting registration or incorporation.

Similarly the company should also inform the registrar of any change of the registered office within 28 days of making the change.

Companies registered in Pakistan shall also mention the registered office address in annual returns to be filed with the registrar of the companies.

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January 13, 2017

Role of promoters for company registration in Pakistan

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Role of promoters for company registration in Pakistan

Role of promoters for company registration in Pakistan

Before discussing the role of promoters for company registration in Pakistan it is better to understand what is a promoter?

Promoter is defined as the person, firm or a company that takes the initiative to form a private limited company or any other form of company and make all the arrangements right from the beginning of the process of company registration till the company registration in Pakistan.

The Role of Promoters of the company can be defined as:

Promoters are the one who conceive the idea of registration of company and its kind whether it is Private limited company, public limited company or any other form of company.

Secondly promoters also finalise the name of the company and in first step make an application for the availability of the name of the name with Securities and Exchange Commission of Pakistan.

Promoters also take a decision about the amount of capital with which the company is going to get registered and make payment of fees to Securities and Exchange Commission of Pakistan accordingly.

After incorporation of the company promoters are also responsible for selection of company auditor, legal advisors and Banks for the purpose of opening Bank accounts.

Promoters also fulfil all the responsibilities as required by the Securities and Exchange Commission of Pakistan until the company is registered.

After registration of the company the company then comes under the control of the directors of the company these directors are normally the promoters or persons selected by them to undertake the role as the directors of the company.

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January 13, 2017

Steps for company registration in Pakistan

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Steps for company registration in Pakistan

Steps for company registration in Pakistan

In this article we will explain you about the steps involved in the company registration process in Pakistan. Please note that the steps mentioned here for company registration are only for online company registration in Pakistan.

  1. Name Availability
  2. Digital Signatures Application
  3. Submission of Documents
    1. Memorandum of Association of company
    2. Articles of Association of company
    3. Form 1
    4. Form 21
    5. Form 29

The first step for company registration in Pakistan is Name availability application to the registrar of companies. The name applied should be appropriate as per the provisions of companies ordinance, 1984.

The second step for registration of companies is making an application to the NIFT a company responsible for issuance of Digital Signatures for company registration purposes in Pakistan. Digital Signatures are issued for each director.

The last step for company registration is submission of all documents to the registrar of companies for review and registration of company.

Following documents are submitted:

After submission if registrar finds all documents appropriate then he proceeds to register company in Pakistan.

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January 13, 2017

Tax News – August 01, 2103

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Tax News – August 01, 2103

Khyber Pakhtunkhwa Revenue Authority (KPRA) Starts its operations from Today August 01, 2103

KPRA in starting its operations from today according to reports. The ceremony is expected to take place in Peshawar today. KPRA was already collecting sales tax on services from July 01, 2103 from all registered tax payers who were providing services in KPK and are required to deposit tax as per KPK Finance Act, 2013.

All the tax payers who are currently registered with Federal Board of Revenue for sales tax purposes are required to e-enroll with KPRA for filing and payment of taxes.

KPRA gained legal powers to collect sales tax on services from July 1, 2013. The services include hotels, marriage halls, lawns/clubs, beauty parlours, 59 types of telecommunication services, customs agents, ship chandlers, stevedores, advertisements on TV and radio, courier services, insurance services and services provided by stock brokers, banking companies or non-banking financial institutions.

Provisional Collection of tax for the month of July, 2013 may reach up to Rs 130 billion

Provisional collection of sales tax for the month of July, 2013 reached up to the mark of Rs. 130 billion as compared to Rs. 109 billion for the month of July, 2012 showing an increase of 21 billion which of course reflects a positive trend towards revenue collection.

Using Sales Tax invoices as gate passes, Business Community of Pakistan completely rejected the proposal made by FBR

Business Circle of Pakistan rejected the proposal made by Federal Board of Revenue to use Sales Tax invoices as Gate passes that are given upon clearance of manufactured goods from factory. They were of the view that a manufacturer could have multiple sites and therefore normally issues several gate passes to same client. However in case of invoice single invoice is raised for single delivery although from multiple sites.

Adding to this sales tax invoices are issued at the time of payment or at the time of delivery of goods whichever is earlier, however gate passes are issued on other occasions as well just for example on even delivery of goods as sample.

They also objected on the requirement of FBR to maintain record of inward, outward gate passes as well as record of transport receipts for six years, because it was argued that for some companies such record would cover huge volume of space and is really hard to manage.

Tax Broadening Measures: Notices Issued to 10,000 u registered persons

As part of the Tax Broadening measures FBR issued notices to about 10,000 unregistered persons for the period up to 30th of July, 2013.

In second phase notices to another 10,000 persons will be issued during the month of August, 2013.

The measure of broadening tax base has so far worked well for FBR and plenty of such persons has started the compliance after getting the notices.

Federal Boar of Revenue is to check the Foreigners operating in Pakistan and have been issued Permanent Establishment certificate without proper scrutiny

FBR is expected to take measures to stop issuing of permanent establishment certificates to foreigners in Pakistan without proper scrutiny.

It was brought into the notice of ITNA news wing that in order to facilitate foreigners operating from Pakistan no certificate from the concerned commissioner as required under section 2(41) should be required.

A clarification was also issued in this regard by Federal Board of Revenue by FBR vide C.No 1(31)WHT/2012/edox-147873-R dated 16.11.2012 whereby it was clearly mentioned that foreigners operating in Pakistan are not required to obtain certificate of Permanent Establishment for commissioner.

However some of the field officers are clearly violating this circular by issuing notices which is to be taken up by Federal Board of revenue shortly.

Reasons behind low collection of sales tax identified

FBR has identified reasons behind low collection of Income taxes some of the major reasons are energy crisis, leakages in tax system, transfer of sales tax collection to provinces etc.

Interestingly the export sector is doing well for the month of July, 2013 and a reliable exporter told ITNA news that slight decrease in exports is due to the Holy Month of Ramzan otherwise things are so fare quite positive for this sector.

Power shortage is also identified as one of the major cause in decrease of sales tax collection as industries are receiving only 3 days a week and 14 hours power.

Posted in: blog
January 13, 2017

The Advantage of Accounting Software for Small Business

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The Advantage of Accounting Software for Small Business

The Advantage of Accounting Software for Small Business

Before highlighting the importance of accounting software for any small business I would like to add here little introduction about my own and my experience of using accounting software.

I am a professional accountant running a medium size firm that provides accounting and corporate consultancy to newly and already established businesses. When I started the work as any other young entrepreneur I was just focused on my marketing and new business capturing techniques and had no thoughts about billing structure, effective usage of my capital and similar factors.

By luck or by some of my hard work my business started growth really fast even betters then the plan. I was having lot of clients and more and more new work and assignments to experience.  But after a while when I started managing my work efficiently I realised that I has no clue about the earnings I am making, how much profit I made in a particular month or what are my expenses that are increasing day by day. The whole picture as fade and I found myself plans less with respect to my future projections.

At that stage I realised the importance of using accounting software. Luckily I am an accountant by profession and programming languages was always my craze. I decided to design accounting software for my business. At the end I managed to design accounting software in Microsoft Excel which I believe is my major contribution towards the small businesses around the world. In fact ITNA Excel Accounting software is the only choice I believe for small size businesses as it is completely designed in Microsoft Excel and is the easiest accounting software I am sure around the globe.

Later on with ever increasing demand from clients we ITNA Consultants developed accounting software in visual basic dot net. This is the only accounting software programmed by accountants and we believe we understand accounting needs of small businesses and have therefore decided that we customise the accounting software as per the needs of small businesses before making any kind of sale.

Therefore if you are interested in reliable accounting software feel free to write me at contact@itnaconsultants.com or visit the home page for link and description of both accounting software’s.

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January 13, 2017

The difference between company registered as Private Limited Company And Company registered as Single Member Company?

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The difference between company registered as Private Limited Company And Company registered as Single Member Company?

Company Registered as Private Limited Company Company Registered as Single Member Company
   1.      A company registered as Private Limited Company cannot invite subscriptions from general public.    1.      This condition is same for the company registered as Single Member Company.
   2.      Transfer of shares is prohibited in the company registered as private limited company.     2.      Transfer of share is also prohibited in the company registered as single member company and can only be done through the will of the only single member or as per the requirements of inheritance law.
   3.      In case of company registered as private limited company nominations of the members of the company is only filed with the company.    3.      In case of company registered as single member company nomination of nominee director is filed with the company and thereafter company notifies the registrar of the companies by filing form S1.
   4.      A company registered as Private Limited Company should have at least 2 members.    4.      A company registered as single member company should have only 1 member.
   5.      In case of company registered as Private Limited company maximum number of members are limited to 50. However the employee members are not counted for the purpose of deciding upper limit and joint shareholders are counted as one.    5.      In case of company registered as single member company only one member is the maximum and minimum limit.
   6.      In case of company registered as Private Limited company certificate to commence business from Registrar is not required.    6.      In case of company registered as single member company there is no requirement to obtain certificate to commence business.
   7.      In case of company registered as private limited company there is no requirement to obtain minimum subscription.    7.      In case of company registered as single member company there is no requirement to obtain minimum subscription.
    8.      For a company registered as private limited company there is no requirement of filing of prospectus except when a private limited company is converted into public limited company.    8.      In case of company registered as single member company prospectus is also not required.
   9.      Filing of accounts with Securities and Exchange Commission of Pakistan is not mandatory in case of company registered as private limited company except when the capital of the company is Rs. 7.5 Million.      9.      Filing of accounts is also not mandatory for company registered as single member company.
   10.  In case of company registered as Private Limited company qualification of auditor is not prescribed except when the capital of the company is Rs. 3 Million or more appointment of Chartered Accountant as auditor is mandatory.    10.  In case of company registered as single member company the conditions for appointment of auditors is similar to that of company registered as private limited company.
   11.  There is no restriction for investment in associated companies and associated undertaking in case of company registered as private limited company.   11.  Same conditions apply for company registered as single member company as are applicable to companies registered as private limited company.
   12.  For company registered as Private Limited company there is no restriction on the business of chief executive of the company. The chief executive of the company can undertake any type of business he wishes to desire.    12.  The conditions for the business of chief executive for single member company are similar to that of the company registered as private limited company.
  13.  Company registered as private limited company there is no requirement for reporting beneficial ownership.    13.  For company registered as single member company the conditions are similar as mentioned on the right for company registered as private limited company.
  14.  There is no requirement for companies registered as private limited company to hold statutory meeting.   14.  Company registered as single member company is also not required to hold statutory meeting.
    15.  Private limited company is also not required to file statutory report.    15.  Company registered as single member company is also not required to file statutory meeting.
   16.  Appointment of company secretary is not mandatory for company registered as private limited company.    16.  For company registered as single member company appoint of company secretary is mandatory.
   17.  In case of company registered as private limited company quorum of the meeting is minimum 2 members present is person having not less than 25% of the voting power on their account or through proxies.    17.  In case of company registered as single member company only a single member present personally or through proxy constitute the quorum.
   18.  In case the company registered as private limited company if number of members is reduced from 2 to 1 it has to convert itself into single member company.    18.  Similarly in case of company registered as single member company if the number of member is increased from 1 it has to convert its self into private limited company.
January 13, 2017

Types of companies allowed to be registered under companies’ ordinance 1984

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Types of companies allowed to be registered under companies’ ordinance 1984

Types of companies allowed to be registered under companies’ ordinance 1984:

Companies’ ordinance 1984 has specified various type of companies that can be registered:

  1. Statutory Company:
  2. Chartered company
  3. Government Company
  4. Registered Company
    1. Company Limited by Shares:
    2. Company Limited by Guarantee
    3. Unlimited company

As per companies’ ordinance, 1984 the companies that are under special statues are normally termed as statutory companies. Once the statutory companies are registered then they are governed by the statues or acts or ordinance through which these companies are registered in Pakistan. A most common example of this type of company is State Bank of Pakistan.

Chartered companies

as per the provisions of companies’ ordinance 1984 are those companies that are constituted under special charter granted by Government of Pakistan. An example of chartered company is East India Company.

Under the provisions of companies’ ordinance 1984 Government companies are those companies in which more than 51% of share are owned by Government. An important point worth mentioning here is that if any company is subsidiary of Government Company it automatically becomes Government Company.

Registered companies

as per provisions of companies’ ordinance, 1984 are those companies which are registered under any provision of companies’ ordinance. These companies are normally classified under three categories:

As per companies ordinance 1984 limited companies are those companies in which the liability of the members is limited to the amount of any unpaid on the shares.

Under companies ordinance 1984 company limited by Guarantee are those companies in which the liability of members is limited to the amount of any amount that member have guaranteed to contribute in the event of winding up of company.

Although this type of company is not allowed to register currently however for the purpose of information unlimited company are that type of company in which the liability of member is not restricted to the amount of capital.

The last point worth mentioning here is that these are types of companies by virtue of legal form and there are also different types of companies with reference to article of association which are motioned in another article.

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January 13, 2017

Types of Companies Registered in Pakistan by virtue of Legal Form

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Types of Companies Registered in Pakistan by virtue of Legal Form

Different types of companies registered in Pakistan (Classification based by virtue of legal form):

By virtue of legal form companies can be classified into following types:

Statutory Company

The company that is formed under special statue is called statutory company. This type of company is governed by the ordinance under which this type of company is created. As in most of other parts of the world there are companies in Pakistan that are formed under some special statue. In Pakistan one of the most renowned statutory companies is State Bank of Pakistan. State Bank of Pakistan is a statutory company and is regulated by the state bank of Pakistan ordinance.

Chartered company

Chartered company is formed under a special charter granted by the head of the state, or Queen or King in some countries. This type of company normally enjoys some special rights or privileges over other companies. The Chartered Bank of England is an example of chartered company.

Government Company

Government company is the type of company in which majority of the shareholding is controlled by the Government or in other words if 51% or more of the paid up capital of the company is owned by the Government such type of company is called Government company. Further a company which is a subsidiary of the Government company is also called Government company.

Registered Company

A registered company in Pakistan is the company which is registered under the provisions of the Companies Ordinance, 1984. These companies have different types which are explained below:

Company Limited by Shares

A company limited by shares is the type of company in which the liability of the members of the company is limited to the amount   unpaid on the shares if any. In simple words if company has authorized capital of Rs. 100,000 out of which members have paid just Rs. 40,000 then in case of any legal action or other dispute the members of the company are liable to contribute just Rs. 60,000.

  Company Limited by guarantee

A company limited by guarantee is the type of company in which the liability of the members of the company is limited up to the amount undertaken by members to contribute in the event of winding up of the company. In simple words the liability of the members is limited up to the amount guarantee by them.

Unlimited company

Unlimited company is the type of company in which the liability of the members of the company is unlimited. In simple words if the company is in the course of winding up then to settle creditors and other claims against the company there is no limit of contribution and even the personal assets of the members can be ordered to be taken in custody for the purpose of settlements of winding up of the company.

January 13, 2017

Types of companies registered in Pakistan on the basis of composition of shareholding

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Types of companies registered in Pakistan on the basis of composition of shareholding

Types of companies registered in Pakistan on the basis of composition of Shareholding:

On the basis of composition of shareholding the types of companies registered in Pakistan are as follows:

Holding Company:

A company is said to be holding company if that company directly or indirectly owns 50% or more of the voting securities of the company or the company has the power to elect or appoint more then 50% of the directors of the company.

Subsidiary Company:

A company is said to be the subsidiary of a company if any other company directly or indirectly owns or holds more than 50% of the voting securities or can appoint majority of its directors.

Associated Company:

Associated companies are those companies whose more than 20% shareholding is own by any other company.

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January 13, 2017

Types of companies registration in Pakistan by virtue of articles of association

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Types of companies registration in Pakistan by virtue of articles of association

Types of companies registered in Pakistan on the basis of articles of association?

Companies registered under companies’ ordinance, 1984 can be classified into following categories by virtue of articles of association:

Private Limited Company

As per the provisions of companies’ ordinance, 1984 private limited companies are defined as:

A private limited company is the company which restricts the right to the transfer the shares if any

Private Limited company restricts the maximum number of members to be fifty.

Private Limited Company prohibits any kind of invitation to general public to subscribe for its any shares and pay any amount to the company in that respect.

Public Company:

A company other than a company registered as private limited company is called public limited company. Companies’ ordinance defined certain conditions for public limited companies which are as under:

A company registered as public limited company does not impose any restrictions on the number of members that the company can have.

A Public company is a company which does not impose any restriction on the right of transfer of its shares.

Public company does not impose any restriction on the invitation to general public to subscribe for its shares and pay any amount in respect of that subscription.

Listed Companies:

A public company can be further classified into two categories:

Listed company is the company which has its shares listed on any stock exchange. In Pakistan at the moment companies are listed on three stock exchanges of the country namely Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange.

Unlisted Company

Unlisted Public companies are those companies whose shares are not listed on any stock exchange of the country and these type of companies are not allowed to trade their shares through stock exchange.

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January 13, 2017

What is Importance of company registration in Pakistan?

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What is Importance of company registration in Pakistan?

Importance of company registration in Pakistan?

In Pakistan where most of the businesses are unregistered investors are mostly concerned about the need of company registration and whether registration of company can make their business operations more complex than running the business without any registration.

Considering the business conditions in Pakistan, role of Income tax department and other regulatory authorities it is most suggested that the business should be registered and that too preferably as Private Limited Company.

First of all registration of business as Private Limited company is simplest and it is quite cost effective option as well. Secondly when the business is registered as Private Limited Company that means that the liability of the business is limited only to the extent of the amount of paid up share capital.

Another important factor for registration is that successful businesses often need loans from Banks for various contracts and other matters. Therefore Banks and other financial institutions prefer to work if the business is properly registered and working as a corporate entity, Accounts are well prepared and management is done efficiently.

Another factor is often the black mailing powers of income tax department in countries like Pakistan whereby unregistered businesses are often under threat from such departments and are a prime source of bribe for these institutions. Therefore it is quite recommendable that the business should be properly registered and all other compliances are properly met.

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