Lay the foundation of your business venture and turn your idea into an enterprise by registering a company in Pakistan with Axis IP.
Whether you are an aspiring entrepreneur, a small business owner, or any person looking to register a company, we at AXIS IP are here to support your journey leading to the foundation of your company. Operative since 2017, our firm has been engaged in a variety of intellectual property services, and our portfolio comprises services such as patent registration, trademark registration, and ISO certification.
Registration gives your business legal recognition, establishing it as a separate legal entity distinct from its owners.
Shareholders of a registered company have limited liability, protecting personal assets in case of business debts or legal issues.
A registered company enhances credibility and trust among customers, suppliers, and other business partners, contributing to better business relationships.
Registered companies may find it easier to attract investors, secure loans, and access various funding opportunities, fostering business growth.
Registration opens doors to government contracts, tenders, and business opportunities that often require legal entity status.
Registered businesses may be eligible for tax incentives, deductions, and exemptions, reducing the overall tax burden.
If any three or more persons decide to engage in a lawful activity that earns them profit, they should subscribe their names to the Memorandum of Association and comply with the requirements of the Companies Act 2017 to form a public or private company. If the company comprises only one member, it is called a single-member company.
In Pakistan, the concerned entiy for registering a company is the Securities and Exchange Commission of Pakistan (SECP). This is a state-owned regulatory agency that has launched its online portal recently, as part of the digitization initiatives by the Government of Pakistan.
We at AXIS IP help you set your business up for success by assisting you throughout the company registration process in Pakistan.
As per the Companies Act (2017), you can register the following three types of legal companies in Pakistan.
This type of company consists of a single individual. All foreign nationals except from Israel are eligible to set up an SMC in Pakistan. It must comply with the requirements in the First Schedule, Part II, Section 4 of the Companies Act, which include:
According to the SECP, two or more persons can set up a private limited company. The method of incorporation is the same irrespective of the type of the private limited company.
According to the Companies Act, the requirements for registering a private limited company include:
A public limited company can be set up by three or more persons and the partners will have to subscribe their names to a Memorandum of Association as well as comply with the requirements of the Companies Act.
Two types of public limited companies can be registered in Pakistan: listed and unlisted. A listed company can offer its shares to the public while an unlisted cannot. The shares may be made available through the stock market or a public offering.
Start by deciding upon a name. Consult with Section 10 of the Companies Act (2017) to check the list of prohibited terms for use in your company’s name. Once you have decided on a unique name, check on SECP’s online portal for its availability.
Sign up on SECP’s online portal as a new user, you would need to select if you are a National or a Foreign/POC holder. Fill out the required information and remember that the CNIC/passport number and password provided while signing up on the portal will act as your credentials to access the portal.
Once you are logged into the portal, reserve your company’s name and define the nature of your business from the options available. You will also be required to enter your company information and the registered addresses, contact numbers, email addresses, etc.
Select the mode of payment as per your ease. The company incorporation fee is Rs.1800 for online submission if the nominal capital is not more than Rs, 100,000. If you submit the company incorporation offline, you will be charged Rs. 3500.
Once your company name gets the approval, you must submission documents of incorporation to the SECP, which are as follows.
After submitting the documents of incorporation and paying the company registration fee, SECP will verify the validity of your submitted documents. Afterward, the National Institutional Facilitation Technologies (NIFT) grants a digital signature for your business, which you can acquire through SECP’s e-portal. In addition to the digital signature, you will need to obtain the certificate of incorporation from NIFT too.
One of the last steps in registering your company in Pakistan is registering it with the Federal Board of Revenue (FBR). You need to apply for the National Tax Number for income tax and submit the following documents with your application.
For Sales Tax, you can register your business for a Sales Tax Number (STN) with the same procedure. For Professional Tax, however, you will need to register your company with the Excise and Taxation (ET) Department.
In addition to registering companies and agencies, we at Axis IP can also help with securing the licenses required to operate different types of companies in Pakistan. These include:
Registering a business requires cementing its legal foundation, which gives it a more reliable structure. Your business can be either a sole proprietorship or a partnership, and in either case, it is crucial that you turn it into a corporate entity registered with the Securities and Exchange Commission of Pakistan (SECP).
What are the pros of registering your company in Pakistan?
A properly registered corporate entity that is recognized by the SECP, as well as the Federal Board of Revenue (FBR), holds much more credibility than a brick-and-mortar store or online entity without the necessary documentation.
By registering your company, you separate it as a legal entity, and any risk of bankruptcy will not affect your own wealth. In the event of legal disputes or financial obligations, your personal assets remain shielded from commercial obligations.
A company with a legal presence and track record is much more likely to attract investments and capital. You get easier access to bank loans, angel investors, venture capital, and other funding sources too.
Registered businesses have the advantage of qualifying for tax breaks, exemptions, and other incentives offered by the government. Certain types of companies, such as in the IT sector, may be subject to different types of tax rebates too.
Legally registered companies can participate in various types of trade affairs and exhibitions on a local as well as a global scale.
Visit the Securities and Exchange Commission of Pakistan (SECP) website and use their online portal to search for the company’s registration status.
Foreign companies must register with the SECP to operate legally in Pakistan. Operating without registration may result in legal consequences.
Verify the registration status of a software company by checking the SECP website or contacting the relevant provincial authorities, such as the Board of Investment.
Yes, foreign nationals can register a company in Pakistan. They need to fulfill certain requirements and follow the procedures outlined by the SECP.
In Pakistan, there is no specific legal structure called LLC (Limited Liability Company). Instead, private limited companies are commonly used, offering limited liability to shareholders.
The registration process duration varies, but it generally takes approximately two to four weeks, subject to the completion of all required documentation and approvals.
Various types of companies can be registered in Pakistan, including private limited companies, single-member companies, public limited companies, and partnerships, each with distinct characteristics and requirements.
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