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SECP Company Registration in Pakistan:
ITNA Consultants Offers Company Registration in Pakistan in all cities including Karachi, Lahore and Islamabad. Private Limited Company Registration is one of the most preferred form of business by most of the business people. Getting the company registered makes a big difference to the business in the form of trust and interest from other people to work with you. Private Limited Company or any form of company in Pakistan is registered as per the requirements stated in the Companies Ordinance, 1984.
Different Forms of Private Limited Companies in Pakistan:
Currently the Securities and Exchange Commission of Pakistan allow Two forms of Private Limited Companies Registration:
- Single Member Private Limited Company: Can be Registered with only 1 Director.
- Private Limited Company: Minimum Two Directors are required.
Basic Requirements for Registration of Company in Pakistan:
- Selection of Suitable Name – Must be in compliance with Securities and Exchange Commission of Pakistan Guidelines.
- Address of the Registered Office of the company to be Registered.
- Minimum Number of Directors depending upon the type of company.
- Submission of Requirement Documents with Securities & Exchange Commission of Pakistan.
- Payment of Government Fee prescribed by Securities and Exchange Commission of Pakistan.
Government Authorities Involved During Registration of Company:
Additional Details Regarding Company Registration in Pakistan:
- Securities and Exchange Commission of Pakistan is the Government body responsible for registration of all types of companies in Pakistan. The officer responsible for handling of registration of companies matters in Securities and Exchange Commission of Pakistan is called registrar of companies.
- As per the requirements of Companies Ordinance, 1984 minimum two directors are required to form a Private Limited Company. However Single Member Company can have a single director.
Types of Companies as per Companies Ordinance, 1984:
As per the Companies Ordinance, 1984 there are three different forms of companies:
- A company limited by shares.
- A company limited by guarantee.
- An unlimited liability company.
So, if you are interested in registration of any of the above mentioned form of companies’ registration feel free to contact us.
Detailed Process of Company Registration in Pakistan:
The detailed process of company registration in Pakistan is mentioned below for the purposes of understanding:
- The most positive aspect of company registration in Pakistan is that the process is not as complicated as in major parts of the world. Still however to register the company on your own you need to have understanding about some basic concepts of company registration in Pakistan.
- An important point before starting the process of company registration in Pakistan is that the body authorized to register companies in Pakistan is called as Securities and Exchange Commission of Pakistan.
First Step for Company Registration in Pakistan: Name Availability Application:
The process of company registration in Pakistan begins with filing an application to registrar of companies, for approval of desired name for incorporation of company in Pakistan. It is advisable that before initiating any application for Name Availability for company registration in Pakistan, to check on website of Securities and Exchange Commission of Pakistan that proposed name is available for company registration in Pakistan.
Second Step for Company Registration in Pakistan: Preparation of Required Documents:
The second step of company registration in Pakistan is preparation of documents of company registration that includes:
- Memorandum of Association of company
- Articles of Association
i. Memorandum of Association
- The main objective of the memorandum of association of the company is to list down all the businesses that company in planning to undertake after confirmation of company registration in Pakistan.
- If you are planning to file the application of company registration in Pakistan offline minimum four copies of memorandum of association are required to attach while filing the application for company registration in Pakistan.
ii. Articles of Association
- Articles of Association in simple words state all the operating rules for the company proposed to be registered in Pakistan. It has all the details for example appointment and removal of directors etc.
- Likewise for offline application four copies of articles of association are required to be attached for company registration in Pakistan.
- There are thee informative forms that need to be filled and signed while filing an application for company registration in Pakistan. These include Form 1, Form 21, and Form 29 for company registration in Pakistan.
Third Step for Company Registration in Pakistan: Filing of documents with registrar:
The last step in the process of company registration in Pakistan is submission of documents to the concerned registrar, with all the documents mentioned above. The registrar is then bound to review all the documents filed for company registration in Pakistan within the meaning of Companies Ordinance, 1984.
- If everything as per the view of registrar is complete the registrar of companies will enter in his register the name of the company and issue certificate of incorporation which will complete the process of company registration in Pakistan.
- Once the company is registered in Pakistan there are few more steps that need to be complied with before starting business in Pakistan. A brief description of post company registration in Pakistan steps are mentioned below:
Post Company Registration in Pakistan Process:
Obtaining Certified Copies of Documents of new company registered in Pakistan:
The next step in the process is filing an application to the Securities and Exchange Commission of Pakistan for obtaining the certified copies of documents of company registered in Pakistan. It should include the copies of memorandum of association, article of association, copy of incorporation certificate.
Passing of Resolution by Board of Directors of the company registered in Pakistan for opening of Bank Account:
Board of Directors of the company registered in Pakistan should pass a resolution for opening of Bank account.
Opening of Bank Account in the name of Company:
Every company registered in Pakistan needs to have a Bank Account in the name of the company for routine transactions, for this reason the company should go to any Bank in Pakistan, where they want to operate the account for the company and provide them the above mentioned documents for company registered in Pakistan and request for opening of Bank Account.
Obtaining National Tax Numbers for Directors and Company:
- The last step in the process is to file an application with the Federal Board of Revenue, for issuing of National Tax Number in the name of company so that company can not only start operating in Pakistan but also can file its regular Income tax returns with Federal Board of Revenue.
- After completing all the above mentioned steps you are now ready to focus on your core business, but you should never forget that noncompliance with any of the mentioned above steps can result in penalties to your company. For this reason it is always advisable to go through a trust worthy company for company registration in Pakistan.
- Now the natural question that comes to mind after going all through steps is that why one should go through all the steps of company registration in Pakistan. The answer is of course there are serious benefits for company registration in Pakistan. Some of them are highlighted here for the purpose of understanding.
Benefits of Company Registration in Pakistan:
Minimization of Business Risk:
Yes a properly and legally registered company in Pakistan can minimize your business risk especially if the business is register as a company in Pakistan. As per the provisions of Companies Ordinance, 1984, which is applicable companies law in Pakistan. The liability of directors of any private limited company registered in Pakistan is limited to the amount of capital that Directors have agreed to subscribed. In other words the personal properties of Director are not under question in any case for business register as Private Limited Company in Pakistan.
Tax burden on Private Limited companies is less as compare to individuals in Pakistan. Because if a business is registered as Private Limited Company in Pakistan then the taxes are paid only on the earnings or net profit of the business. Whereas a normal taxpayer will pay income tax on income and not on profits.
Avoidance of Penalties:
A properly registered business in Pakistan is always safe from penalties from Government for not complying with the laws of the countries.
- Company Registration creates a trust among the customers that the business is legal in the country and thus can lead to more revenues and profits.
- I hope that the above articles have provided you with detail understanding about company registration process in Pakistan and its advantages.
Comparison of Registration of Business as Company, Sole Proprietor or Firm:
It is worth mentioning here brief differences among three most common forms of business registration in Pakistan. Differences are as follows:
- Minimum one person is required to form a Sole Proprietor. To register a partnership minimum two partners are required. Registration of business as company requires at least two directors. (Single Member Company can be registered with one Director).
- Sole Proprietor is registered only with Federal Board of Revenue. Firm is registered with Regional Registrar and Federal Board of Revenue. Company is registered with Securities and Exchange Commission of Pakistan and Federal Board of Revenue.
- In terms of Cost Sole proprietor registration is cheapest, then Firm Registration and in last stands company registration.
- Life of sole proprietor business ends with life of the owner. Partnership Business is also dissolved upon death of any partner. Company has unlimited life and shares of director are transferred to his family or if another person is nominated upon death.
- Time required for sole proprietor registration 3 to 5 working days. Firm Registration 7 to 14 working days. Company registration 10 to 15 working days.
- In Sole proprietor owner and business Income Tax Return is same. Separate returns are required to be filed with Federal Board of Revenue. Directors and company returns are filed separately.
- No legal requirement for appointment of legal adviser and auditor in case of sole proprietor and firm registration. Companies having capital above certain threshold are required to appoint auditors and Legal Advisers.
- All three types of business registration are allowed to undertake any business of their choice. No restriction on any business.
In case you have any query with regard to company registration in Pakistan or want to hire our professional consultants to handle your business registration please write us at email@example.com.