How much does it cost to register a company in Pakistan?

The cost of registering a company in Pakistan depends various factors such as type of company, nature of business as well as on the authorized share capital of the company. The registration fee is based on the authorized share capital of the company starts around PKR 5,000 for a share capital of up to PKR 100,000 and increases as the share capital increases excluding legal and professional fees. If you choose to seek assistance from our firm, there may be additional fees for the services.

Can a foreigner register a company in Pakistan?

Yes, foreigners can register a company in Pakistan. The process is complex and the government encourages foreign investment. However, there are a few things required in this regard:

• Incorporation Requirements: Foreigners are required to have a local registered office address in Pakistan. This can be obtained through a service provider or a local partner.
• Shareholding: Foreigners can hold 100% ownership of a company in most sectors. However, there are certain restrictions in specific industries like banking and security etc., where foreign ownership is limited.
• Legal Compliance: Foreigners must ensure compliance with Pakistani laws and regulations, including tax obligations, labor laws, and any sector-specific regulations.
• Documentation: Foreigners will need to provide their passport copies, proof of address, and other relevant documents during the registration process.

How to register a company in Pakistan Stock Exchange?

Process of company registration in Pakistan Stock Exchange (PSX) begins after issuance of incorporation certificate by the SECP as mentioned above. Once the company gets registered with the SECP, following steps are to be followed;

• Hiring a Legal Consultant: It’s highly recommended to hire a legal consultant or a corporate lawyer who specializes in securities law and has experience with Pakistan Stock Exchange (PSX) regulations. We will guide you through the process and ensure compliance.
• Preparation of Documents: We will prepare and collect all the necessary documents, including the company’s incorporation certificate, Memorandum and Articles of Association, audited financial statements, and other relevant documents.
• Draft the Prospectus: If you plan to issue shares to the public, we will prepare a prospectus. This document provides detailed information about the company, its financials, and the offering to potential investors.
• Complete the Application: We will fill out the application form provided by the PSX and attach all the required information, such as the company’s details, financial information, and the proposed offering.
• Payment of Fee: After completion of documentation, a registration fee as specified by the PSX required to be paid in their official bank account.
• Submission of File: After depositing the required fee, we will submit the application form, along with the necessary documents and the payment receipt, in the office of PSX.
• Compliance and Approval: The PSX will review application, conduct due diligence, and ensure compliance with the listing rules. If everything gets accepted and the PSX is satisfied with the application, company will be approved for listing on the stock exchange.

How to register a company in Pakistan Engineering Council?

If you are intending to register a company with the Pakistan Engineering Council, then note that this process begins after registration of company with the SECP. Once the company gets registered with the Securities and Exchange Commission of Pakistan, you would need to follow these steps:

• Filing Application Form: Fill out the application form with all the required information, including the company’s details, such as incorporation number, name, address, and contact information.
• Attach Required Documents: Attach the necessary documents, such as the company’s Incorporation Certificate, Memorandum and Articles of Association, NTN Certificate, License of Engineering, Accounts Maintenance Certificate, Affidavit and other relevant documents alongwith the application form provided by the Pakistan Engineering Council.
• Payment of Fee: In case of Private Limited Company, registration fee is 30,000/-. For Sole Proprietor, fee 10,000/-. For Partnership Firm, fee is 20,000/-. In case of Foreigner Consulting Engineers, fee is 1000 USD. This fee is required to be deposited into the official bank account of Pakistan Engineering Council.
• Submission of Application: After payment of fee, all the documents along with the payment deposit receipt required to be submitted in the Pakistan Engineering Council (PEC) Secretariat.
• Verification and Approval: The PEC will verify the submitted documents and conduct necessary checks. Once the verification process gets completed and everything gets approved, your company will be registered with the PEC.

What is a Single Member Company?

A Single Member Company is set up as a separate business entity from its owner and only has one shareholder. The single member serves as a director and has complete control over the company and its assets. The single member company concept came into existence in 2010. It is a private limited company but the difference is that only one member is required to incorporate the company. The SMC can not sell or trade the stakes with the public in the stock market.

What is a Private Limited Company?

A private limited company is the ideal business structure for Small-Medium Enterprises that need to raise capital on a small to medium scale. A private limited company is a separate legal entity from its shareholders. Shareholders elect a board that, along with the company’s CEO, takes the operational decisions. A company may also require a company secretary, legal advisor and auditor depending on its size. It is the most favorable business structure among the business class of Pakistan. A minimum of two directors are required for its registration. It takes 2-3 days on average to complete the process.

What is a Public Limited Company?

A public limited company, or ‘PLC’ for short, is a company that is legally allowed to offer its shares for sale to the public. They don’t have to offer shares to the public if they choose not to, but the option is there if and when needed. A Public Limited Company is not the most popular choice of company in Pakistan, in fact over 95% of limited companies in Pakistan are private limited companies. There are certain differences between the two, and there are specific requirements that a public limited company needs to meet.

A public limited company is a type of limited liability. But, in this case, the company can sell and trade its shares in public. However, sharing the company’s worth is necessary in these types of businesses. So, the buyers would come to know the worth of the company. However, the selling and trading of shares to investors increases the company’s capital. But, forming a public limited company has more strict requirements than a private limited company.

What is a Limited Liability Partnership?

In contrast to a General Partnership or an Association of Persons (AOP), the Limited Liability Partnership (LLP) is a separate legal entity and provides protection to other partners from joint liability created by the misconduct of another partner. This business structure combines the advantages of a Limited Liability Company and the flexibility of a general partnership (regulated under Partnership Act, 1932) at a low compliance cost.

What is a process of partnership registration in Pakistan?

Registration of partnership firm in Pakistan is no longer complex. Two or more partners can form a firm in line with the provisions of Partnership Act, 1932 for starting a business in Pakistan.

Step-by-Step Process

• Complete your documents as mentioned in the below section
• Download the application form (Form-I) and fill it properly
• Prepare a Partnership Deed on a Stamp Paper of Rs. 1000/-
• Submit registration fee i.e. Rs. 1000/- in the National Bank of Pakistan (NBP) through a Challan Form under the Head of Account: C-03545
• Prepare an affidavit regarding accuracy of papers and existence of office on a stamp paper of Rs. 5/-
• Visit Citizen Facilitation Center, Mauve Area, G-11/4, Islamabad to submit your application along with documents
• After documents submission, a date and time will be provided for physical appearance of all the Partners / Witnesses along-with their original valid CNIC before the Registrar of Firms.
• The partners should contact this office after ten days of submission of papers to collect their certificate

Documents Required

• Form-I
• Partnership Deed on a Stamp Paper of Rs. 1000/-
• Receipt regarding submission of Registration Fee in NBP
• Affidavit on a Stamp Paper of Rs. 5/-
• Copy of lease agreement / ownership of the office address alongside a copy of a utility bill (Office of the Firm should be in Commercial Area)
• Copy of Computerized valid N.I.C of all the Partners and Witnesses.