Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Pakistan
As an investor, you now have a chance to venture into any business in Pakistan. Therefore, company registration in Pakistan is now possible courtesy of the flexible regulatory requirements set by the government agencies. Well, having the right information is essential when it comes to company registration, and one such way is through 3E Accounting India. Some of the common services that you’re bound to enjoy are as follows:
- Business setup
- Business license renewal
- Auditing and accounting services
- Taxation and legal services
- Human resource services
Then, you now have a chance to seek any business solution services at a convenient time. With that in mind, the requirements for company registration in Pakistan involves six basic steps.
Step 1: The Company Name Approval
It’s no doubt that every business must have a business name to validate its legality. Therefore, the first requirement is choosing your company’s name and get approval. When choosing a name, it must be unique and must never contravene the Company’s Act or regarded offensive. The Securities and Exchange Commission of Pakistan (SECP) is the authority responsible for the registration of companies. Once the SECP feels it fit that the name is appropriate according to the laid down naming criteria, it then approves the name. Afterwards, they will issue a name availability certificate.
The payment of the incorporation fees then follows as part of the process. With the name availability certificate, you’re now free to apply to register your company. You can pay the fees at any authorized Muslim Commercial Banks (MCB) after which you’ll be required to submit the following documents by the SECP:
- Copies of Memorandum and Articles of Association bearing members signatures.
- Details of directors, secretary, chief accountant, auditors, and others.
- An official letter of declaration of compliance.
- A registration identification of the location of the office.
Step 2: The Presentation of Documents
The next step of company registration in Pakistan after submission of documents is getting the digital signature and the making of the company seal. Then, for you to obtain the digital signature, you must seek the services of SECP through their E-services granted by the National Institutional Facilitation Technologies. The moment the certificate of incorporation is issued, you now have the go-ahead to apply for a company seal whose requirements may vary from one city to another.
Step 3: The Registration as a Tax Compliant
It follows that for you to operate a business in Pakistan, you must be tax compliant. Therefore, this brings us to the next step, which is the registration for income, sales, and professional taxes. Now, you must first begin by registering for the National Tax Number (NTN) at the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). For Income tax registration, you’ll be required to present some of the following requirements for application:
- The National Tax Number form
- Certificate of incorporation
- Memorandum and Articles of Association
- The Bank account number
- The original copies of the National Identity Cards (NICs) of directors.
- Verification of company address.
Should you feel that the process of taxation is cumbersome, you may seek the services of 3E Accounting India, where professionals will take you through the registration process.
Step 4: The Deposit of Shares
The Company’s Act requires that once you have attained the certificate of incorporation, the shareholders must deposit their equivalent amount of shares to the registered company’s corporate bank account.
Step 5: The Registration with the Social Security Institutions
As part of company registration in Pakistan, every business should register with the Employees Social Security Institutions (ESSI) and the Employees Old-Age Benefits Institution (EOBI). Then, this marks the fifth step of the registration process in company incorporation. When it comes to the registration of social security, it will depend on the location of your business.
Under the Employment Act, they require you to register with the following institutions:
- Punjab Employees Social Security Institutions (PESSI)
- Sindh Employees Social Security Institution (SESSI)
- BESSI for Balochistan and KPKESSI for Khyber Pakhtunkhwa
If you have five or more employees, you must register with the federal Employees Old-Age Benefits Institution (EOBI). Then, the sixth step is registering with the Labour Department of the District after submission of application Form A alongside with Bank Challan.