There are numerous reasons to invest in Pakistan. Its primary advantages include low competition, a large population, and a rapidly growing economy. For this purpose firm registration is very important.
Step By Step Firm Registration in Pakistan
The procedure for forming a public limited company is mentioned below. They may, however, require you to submit additional documentation.
Step 1: Company Name Approval
The first step in company registration in Pakistan is to choose a name for the company. It is critical to create a distinct company name that will set you apart from the competition.
You must abide by the rules and regulations. Make certain, for example, that your company's name does not contain any prohibited words.
Step 2: Document Submission
Once the company name has been approved, you must submit the incorporation documents to Pakistan's Securities and Exchange Commission (SECP).
Step 3: Obtaining a Certificate of Incorporation
The SECP evaluates the documents after they are submitted. They double-check their authenticity. The National Institutional Facilitation Technologies (NIFT) issues digital signatures, which can be obtained through the SECP.
Step 4: Make a share deposit
Following registration, shareholders must deposit the appropriate number of shares into the company's bank account.
Step 5: File Income, Sales, and Professional Taxes
Finally, the final step in Pakistan company registration is identification with the Federal Board of Revenue (FBR) and issuance of a national tax number (NTN). If applicable, a sales tax registration number might well be registered.
The information presented is subject to change as a result of changes in Pakistani laws and amendments. We have updated our articles to reflect this. If you are primarily willing to hire staff members in Pakistan, a record service employer may be a better option.
Foreign ownership is permitted in Pakistan.
Unlike many other comparable markets, Pakistan is extremely welcoming to foreign investors. Due to its poor international reputation, the country has significantly increased its openness to foreign investment in recent years.
Some products, for example, can even be imported without the need for an import licence.
Moreover, foreign investors can set up 100% foreign-owned companies in most business lines. Except for Israelis, shareholders can be of any nationality.
Pakistan's Minimum Capital Requirement
In Pakistan, there are two types of share capitals: paid-up capital and authorised capital. When you register your company, you must declare both capitals in the Articles of Association.
Paid up wealth is the amount of money received by the company from its shareholders. Authorized capital, on the other hand, is the maximum amount of share capital that the company is permitted to issue to its shareholders.
In Pakistan, there is no official statutory requirement for private limited companies. As a result, it is common practise to consider PKR 100,000 (US$823) as the minimum capital.
In reality, however, the paid-up capital you inject must be sufficient to cover your projected expenses. For example, if you intend to build a factory for your company, you should have sufficient capital to do so. Foreign investors are increasingly seeing Pakistan as a viable investment opportunity. For example, foreign investment in Pakistan increased by USD 152.7 in March 2018. By 2020, it is expected to grow by 17.2 percent.
Types of Legal Entities in Pakistan
If you intend to invest in Pakistan, the following legal entities are available to you.
1 Private Limited Company
Foreign investors are permitted to establish wholly foreign-owned private limited companies (LLCs) in Pakistan. The number of shareholders required to register this type of company is two. Except for Israelis, any foreign national can be a shareholder in this type of company.
2 Single Member Company
A single member company, like a limited company, can be established in Pakistan with a minimum capital of PKR 100,000 (US$ 823).
The standard time for incorporation is four weeks, and the registered address of the company must be in Pakistan.
3 Public Limited Company
A public limited company's shares are generally available to the general public. These are limited liability shares.
The shares are available to anyone. It could be through a public offering or stock market trading.
In Pakistan, there are two forms of public limited companies: unlisted and listed.