The article will explain in detail what is Pvt Ltd Company in Pakistan? Pvt Ltd is short form of Private Limited Company. Private Limited Company is also known as Limited Liability Company (L.L.C) in countries like United Arab Emirates and Saudi Arabia etc.
Let us now discuss in detail regarding what is a Private Limited Company?
What is Pvt Ltd Company in Pakistan?
Private Limited Company in Pakistan is the form of business whereby owners or shareholders are not personally liable for the debts or other liabilities of the Company.
In simple words a Private Limited Company is a legal person in the eyes of law. Therefore in case of any legal issue the case or legal proceedings can only be initiated against the company and not directly to the owners.
That is why the term Limited Liability is used with the company. The word limited reflects that liability of the owners is limited only to the extent of Company Assets and their personal assets can not be confiscated just to settle the liabilities of the business.
This is quite different from Sole Proprietor or Partnership Business Registration where owners are personally liable for the debts and liabilities. A legal case against the sole proprietor or Firm is directly against the owners. Even the personal Assets of Sole Proprietor or Partnership Firm owner can be used to settle business liabilities.
Let us understand little bit more about Private Limited Companies in Pakistan.
Where Pvt Ltd Company is Registered in Pakistan?
What are different types of Pvt Ltd Companies in Pakistan?
In Pakistan you can register the Pvt Ltd Company with following options:
- Single Member Pvt Ltd Company
- Pvt Ltd Company
The main difference between single member Pvt Ltd Company and Pvt Ltd Company is that minimum 1 director is required for registration of single member Pvt Ltd Company.
Pvt Ltd Company needs minimum two directors for registration.
What Documents and Information is required to register Pvt Ltd Company?
If you want to know complete details regarding registration of Pvt Ltd Company i suggest you to go through the following article. It explains in detail about the whole process of company formation in Pakistan.
However brief steps are mentioned here just for the purpose of understanding:
- Selection of Suitable Name
- Details of Directors
- Details Regarding Registered Office of the Company
- Memorandum of Association
- Articles of Association
Above documents and information is submitted to the Securities and Exchange Commission of Pakistan for approval. Once approved the company is officially registered and authorize to do any business of its choice.
How much time it takes to Register Pvt Company in Pakistan?
If all the documents are properly prepared and submitted. It takes around 5 to 10 working days to get Pvt Ltd Company registered in Pakistan.
Is it Possible to Register Pvt Ltd Company in Pakistan with Foreign National?
Yes, you can register Pvt Ltd Company in Pakistan with Foreign Nationals. However all the Foreign Nationals will go through a Security clearance process by the relevant security agencies in Pakistan.
If the agencies are not satisfied then they will notify the Company that these people are not suitable for the position of directors. In that case company will be provided with reasonable time to replace the director with other foreign national or Pakistani national.
What are the tax liabilities of Pvt Ltd Company in Pakistan?
Pvt Ltd Companies need submit annual income tax Return. If they are registered for Sales Tax they need also to submit monthly sales tax returns.
If you are interested in registering Private Limited Company or any other form of business feel free to contact us.