FirmIt is a business group or organization with separate legal identity and Limited Liability that produce goods or services and sell them to consumers, other firms or governments in order to earn profit.
TypesFirms can be distributed into 3 categories: Sole Proprietorship:
- It’s a kind of business organization that is owned and managed by a single person. Capital requirement is very small.
- Unlimited liability
- It’s a kind of business organization owned and managed by two or more individuals who contribute in money or property for a common goal.
- Limited liability
- It’s a group of individuals that is authorized to work as a single identity and recognized by the law.
- Limited liability.
Firm Registration Process
For the registration of a firm, minimum of two persons are required with following documents and information of each partner:
- Full Names of all partners
- Name of Father or Husband
- Current and Permanent Residential address
- Occupation of all partners
- Photocopy of the National Identity cards
- Copy of electricity bill (it is asked as an evidence of partners’ residential address).
- Copy of rent agreement with the landlord, if one or all of the partners are living in rented houses.
- Business Name (under which the business will continue).
- Name of the business places (head office, warehouse address etc)
- Nature of the business
- Dates on which each partner has joined the firm
- Original slip of registration Fee deposited in the National Bank of Pakistan.
- Signatures of all the partners in partnership/firm business in the presence of registrar or an authorized officer are taken.
- NTN (National Tax Number) from FBR (Federal Board of Revenue)
- Separate Bank Account for the firm with firm’s registered name.
- Financial statements and Accounting records
- As required under the provisions of the Income Tax Ordinance 2001, Advance Payment of Income tax is also required.
Advantages of Firm Registration
The rights and honors of an incoming partner are also secure in a registered firm. Only in a case if the arriving partner fails to list himself, he will experience prodigious risk. He will never be in a place to claim for his payments against his firm or his co-partners.
The most important and key benefit of Firm Registration is that the registered firm can sue the unlawful parties. The rights of registered firms are protected by law. On the other side, an un-registered firm or its partners cannot claim against the third parties or its co-partners.
Lawful Settlement of Claims:
All the Registered firms have full lawful protection as compared with unregistered firms. As they work severely in agreement with the government rulebooks and principles so they have no fright from government to turn their work prohibited. Therefore these firms work with freedom and without any anxiety.
Government provides many conveniences and privileges to the registered firms. It provides safety to business and production, which makes it more gainful.
The moveable or immoveable property of the discharged or departed partner remains liable for the actions the firm does after his/her demise or retirement until public notice is served for the amendment to the registrar, that’s why there is a strong incentive for partners of registered firms to have the variations noted in the register. If there is an unregistered firm, the private property of the discharged partner will be considered liable to charge the obligations despite of departure.
Safeguard of Property:
Banks and other financial bodies provide credit to registered firms without any reluctance. As these firms stand by the government rulebooks and regulations, so they have full faith in them.
A Registered firm should have maintained precise, comprehensive and up to date record of its partners who will be accountable for the commitments of the firm. The declaration recorded in the register concerning constitution of the firm would give a strong protection against false refusal of firm and the avoidance of liability to individuals who want to contract with the firm.
Protection to Creditors:
Once the Firm Registration is done, People have more confidence as compared to the individuals in the unregistered firms, because they think that these companies are employed under the regulation of the government and there are no probabilities of fraud or falsification on behalf of registered firms. Therefore they make business contracts with them deprived of any fright.
Firm Registration adds reputation to a business. They have a strong belief that other firms cannot replicate their products or services. Such companies also use their symbols and trademarks will full liberty because they know no other firm Registered or non-registered can use them.
When people discover a product up to their standards, they note its trade mark. It enhances the image of the firm and makes its business more moneymaking.
Get Your Firm Registered today with Evolution Business Consultants (pvt) limited. We are a team of experienced and skilled business and professional consultants. We are providing you the complete information and consultancy for firm registration and business name search services with utmost ease and simplest manner. We will simplify the whole process of firm registration for you. We also provide similar services related to company incorporation and business registration.
For further information and details, Please feel free to contact us at:
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