HOW TO REGISTER PRIVATE LIMITED COMPANY IN PAKISTAN

Once you apply in SECP, the documents that are required are as follows. The company file that is prepared should include:

1. Mobile number of directors

2. Email ID of directors

3. Registered Office Address of Company

Registered office address is any address where the company is located. It is an address which will be used by government officials to send any documents. Normally, whichever address you give in SECP, residential or commercial, gets accepted and then the NTNs also get issued and bank account is also opened. Normal companies can start their operations from here. For companies that go for Weboc and Sales Tax, import export companies usually, or manufacturing associated companies, they will need a commercial office address. 

Once these documents are sent, we will also needs information on the share percentage of directors. Then, we have to prepare memorandum association, article association, and form 29 and form 21. Previously, all forms were separate. Now all of these are merged into one 5-6 pager form. The memorandum association has company objectives. Company’s Act of 2017 states that under one company you can do multiple businesses (any legal business subject to specific licensure requirements of specific businesses). To add, if your company for example is providing IT services, import export work, local services, you can work it all under one company. It can be any legal business. In your memorandum you have to share the main source of income with SECP.  In the beginning it will be difficult to tell which one is the main source of income but usually you choose the main field you are specialized in as the main source. For example, if you are an engineer, your relevant field services should ideally be your main objective. Additionally, you have all rights to do any legal business. After a year, if your company is operating 2-3 businesses, for example, import export, sector services and IT services, then you will have to evaluate the source that generates the highest revenue and then make the necessary amendments in the clause. 

Article association involves company rules, for example, responsibilities of directors, how will the meeting be conducted and policies of company. These need to be documented in article. Form 21 has company address. Form 29 has details of directors for example name, father name, address, date of appointment etc. These forms aggregate to form a file.

Once the file is prepared, it is officially submitted in SECP online. SECP offices are located in all cities. Mostly people prefer online submissions. In the next 5-8 working days the company is incorporated and certificate is issued. 

One window operation, as I mentioned earlier, shares all this data with FBR. From there, NTNs of all directors and company NTN is issued. A code is sent to email ids and phone numbers of all directors that contains PIN, Password and Login ID and NTN number is also mentioned. Following which, you open company bank account. For bank account you need minutes. Minutes is basically determines decision of signing authority as to who will sign the cheques issued either both the directors, or the accountant, or the appointed CEO. Whenever you appoint a CEO who is not amongst the partners/directors and he is issued a limit to sign cheques, and if for instance there is a bigger deal and you need a cheque of bigger amount, the authority lies with the directors. So basically these are minutes with all the terms and conditions consisting of which bank is opted, who are the directors and who has the authority. Once all this done, normally in 5 days your bank account is opened. The bank should always be in the relevant city of your company’s registration otherwise problems arise is Sales Tax registration etc. These problems will be addressed later. 

 When we talk about CEO, he can be any one of the 2-50 directors or he may be a third person hired. Previously registered companies by the Company Ordinance of 1964 required registration of company first before appointment of officers which included auditor, company secretary, legal advisor, accountant, etc. including managerial staff and CEO were appointed together. Now, when you apply for company registration, the file includes declaration of CEO. If he is amongst the directors, just his name is given. If he is a third person, his ID card’s copy is also attached. After the appointment of officers, some company including the trading companies, need a registration in Chambers of Commerce. Even if it any other company, you should register in local chamber as it gives a lot of benefits. It also invites to business forum where you can interact with various businessmen of the community. Also you need registration is Sales Tax (GST) and WeBoc. Ideally it should have been a part of one window operations but anyways you need these registrations. Our aim is to help and guide our friends and educate them. Friends if you are a wholesaler, distributor or manufacturer then sales tax registration is mandatory. If you are a retailer and your financial year turnover is more than 5 million then you may need sales tax registration. If you run an IT company, you have tax exemption for next 2 years. You can only avail that if you are registered with Pakistan Software Export Board. If you are starting an industry, different departments like health, environment, food then you need registrations from relevant departments. So whenever you start any business you will have to see how many registrations are mandatory.

We have tried to provide all general information in this video. If you have any question you can call, whatsapp or email us. We will reply you in our best possible time. If you have any logo design, get it registered in Trademark. The goodwill of company relies a lot on these brands and signs. You may have to face issues related to trademark after 2 or 3 or maybe 5 years even when someone uses your designed logo in another new business and you lose them because you did not register in the first place. Later you get indulged in legal issues so much that you lose focus in business itself. If you are a singlw owner you have an option of SMC Company.

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