Starting your new business and don’t know where to start from? Well, the first and foremost thing to do is get your company registered. In Pakistan, the company registration process is administered by the Securities and Exchange Commission of Pakistan (SECP) and is regulated by the 1984 Companies Ordinance Act.
As per the 1984 Companies Ordinance Act, mainly 3 types of companies can be registered in Pakistan; so, be very sure before picking the company type:
The company registration process in Pakistan comprises of six basic steps which are:
Choose an appropriate name for your company. Avoid any kind of deceptive or indecorous terms since the SECP would straight away reject them. Moreover, they will also scrutinize the legitimacy of your proposed name so as to make sure that it is not already owned by someone or is close to some existing company’s name. Therefore, in order to pass this step successfully, just conform to the company naming criteria laid down by the SECP.
You may have to submit an application for the availability of name against which the SECP would issue a certificate. The charges for name registration could be paid at any designated bank through bank challans. Then, you would be required to submit the following to the SECP:
The National Institutional Facilitation Technologies grants a digital signature which can be accessed through SECP’s E-services. Subsequent to the issuance of the incorporation certificate, you would be asked to show your company seal. This would depend on the location of your company as well.
A National Tax Number also known as NTN is required before you register your company for income tax. The application for this purpose is required to be submitted to the Federal Board of Revenue’s tax facilitation center along with the following:
Similarly, a Sales Tax Number also known as STN is required prior to the registration of your company for Sales Tax. The STN application is also submitted to the tax facilitation center of the FBR.
In order to register for the Professional Tax, you need to apply to the ET (Excise and Taxation) Department.
As per your business location; you are required to register with the respective Employees Social Security Institution (ESSI) i.e. SESSI (for Sindh), BESSI (for Balochistan), PESSI (for Punjab) and KPKESSI (for Khyber Pakhtunkhwa)
The EOBI registration is obligatory for any company having 5 or more employees. This registration entitles the insured employees to certain benefits including pensions, survivor’s pension and old age grants etc.
Every organization comprising of more than one worker is obligated to get registered with the Labor Department. This department conserves the labor standards of the employees working in the firms. The employer is required to submit a bank challan with the application form for registration purpose.
The company registration process in Pakistan is not complicated. All you need to do is follow these 6 steps thoroughly. For further convenience, the SECP has lately introduced e-services that includes online registration of the company along with some other services like name availability etc. which is making the process more expedient than ever.