How to Register a company in Pakistan

Introduction

Starting a business in Pakistan? Whether you're launching a startup, small business, or a large company, registering your business legally is crucial for long-term success. Business registration ensures legal protection, access to loans, brand credibility, and compliance with Pakistani laws.

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In this guide, we’ll walk you through the legal process of registering a business in Pakistan

step by step.

Types of Business Entities in Pakistan

Before registering your business, you must decide on the business structure that suits your needs. Here are the most common types:

1.  Sole Proprietorship

✅ Best for small businesses and freelancers

✅ Owner has complete control

✅ Easy registration process

2.  Partnership Firm

✅ Suitable for businesses with 2 or more partners

✅ Governed under the Partnership Act, 1932

✅ Partners share profits, losses, and responsibilities

3.  Private Limited Company (Pvt Ltd)

✅ Ideal for startups and growing businesses

✅ Requires registration with Securities and Exchange Commission of Pakistan (SECP)

✅ Limited liability for owners

4.  Public Limited Company

✅ Best for large businesses with multiple shareholders

✅ Requires compliance with SECP regulations

✅ Can raise funds through Pakistan Stock Exchange (PSX)

5.  Limited Liability Partnership (LLP)

✅ A hybrid structure between a partnership and a private company

✅ Partners have limited liability

✅ Requires SECP registration

Step-by-Step Guide to Business Registration in Pakistan

Step 1: Choose a Business Name

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🔹 Your business name should be unique, relevant, and legally available.

🔹 Check for name availability through SECP’s online name search portal.

🔹 Avoid prohibited words as per SECP guidelines.

Step 2: Register Your Business Structure

📌 Sole Proprietorship: Register with Federal Board of Revenue (FBR) for tax purposes.

📌 Partnership: Register with the Registrar of Firms in your respective city.

📌 Pvt Ltd, LLP & Public Companies: Register with SECP online via eServices portal.

Step 3: Obtain a National Tax Number (NTN)

🔹 Register with FBR to get your National Tax Number (NTN).

🔹 This is mandatory for filing taxes and opening a business bank account.

🔹 You can apply for an NTN through the Iris portal on the FBR website.

Step 4: Register for Sales Tax (If Required)

📌 If your business sells goods or services, you must register for Sales Tax (GST) with FBR.

📌 GST is mandatory if your annual turnover exceeds PKR 10 million.

Step 5: Open a Business Bank Account

🔹 Use your NTN and business registration documents to open a bank account in your company’s name.

🔹 This helps separate personal and business finances.

Step 6: Get a Professional Tax Certificate

📌 Depending on your industry, you may need a professional tax certificate from your

provincial tax authority.

Step 7: Obtain Necessary Business Licenses

🔹 Some industries require special permits or licenses:

✔ E-commerce & IT startups → PSEB Registration

✔ Food businesses → Punjab Food Authority License

✔ Import/export businesses → Trade License from Pakistan Customs

Step 8: Register with Chamber of Commerce (Optional)

📌 For additional business support and networking, register with your city’s Chamber of Commerce.

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Benefits of Business Registration in Pakistan

✔ Legal Protection – Prevents others from using your business name.

✔ Tax Benefits – Allows for tax deductions and exemptions.

✔ Access to Bank Loans – Essential for securing business financing.

✔ Increases Credibility – Builds trust with customers and investors.

✔ Eligible for Government Grants – Some businesses qualify for government funding

programs.

Conclusion

Registering your business in Pakistan is a crucial step toward building a legal and successful enterprise. By following this step-by-step legal guide, you ensure compliance, credibility, and growth opportunities for your startup.

Need Legal Assistance?

For expert guidance on business registration, tax compliance, and legal documentation, consult professional lawyers through Zor – Pakistan’s Leading Online Legal Consultation Platform.

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