How to Register a Business in Pakistan — Step-by-Step Guide

Practical, up-to-date steps to legally register and start operating a business in Pakistan.

Registering a business correctly protects your legal rights, helps you open bank accounts, file taxes, bid for contracts, and access government incentives. This guide explains the common business structures, required documents, the registration process with government authorities (SECP / FBR), and the post-registration compliance you must observe.

Step 1 — Choose the appropriate business structure

Select the legal form that best matches your needs — liability exposure, tax treatment, governance and future plans affect the choice.

• Sole proprietorship: Simple to start; owner and business are the same legal person. Common for freelancers, shops, small traders.
• Partnership: Two or more partners share profits and liabilities. A written partnership deed is strongly recommended.
• Private Limited Company (Pvt. Ltd.): Separate legal entity, limited liability for shareholders, better for raising capital and contracting.
• Single Member Company (SMC): A one-person company with limited liability — similar benefits to a private company for solo entrepreneurs.

Step 2 — Reserve and confirm your business name

Company names (for Pvt. Ltd / SMC) must be reserved via the Securities and Exchange Commission of Pakistan (SECP) name reservation service. For partnerships and sole proprietorships you can use a trade name but check that it does not infringe others’ trademarks or registered company names.

SECP e-services: eservices.secp.gov.pk

Step 3 — Prepare required documents

While documents vary by structure, commonly required items include:

• Valid CNIC / passport copies of owners, partners or directors.
• Proof of registered office address (utility bill or lease agreement).
• Memorandum & Articles of Association (for companies).
• Partnership deed (for partnerships).
• Specimen signatures and a resolution authorizing formation (if applicable).

Step 4 — Register with the relevant authority

Registration steps differ by business form:

For Private Limited / Single Member Companies

1. Use SECP e-services to submit name reservation, incorporation form (Form-1/21 as applicable), and digital copies of MOA/AOA.
2. Pay incorporation fees and obtain the Certificate of Incorporation.
3. Receive the company’s incorporation number and submit details for director CNIC verification.

For Partnership

Partnerships can be registered at the local Registrar of Firms. Registration is optional in some cases but provides legal evidence of the partnership and is recommended.

For Sole Proprietorship

Register for tax and local trade licenses as required. Many proprietors start by obtaining an NTN and registering with local municipal authorities for a trade license.

Step 5 — Obtain National Tax Number (NTN) and register for taxes

Every commercial entity must register with the Federal Board of Revenue (FBR) to obtain an NTN. Use the FBR portal to apply online. If your business is liable for sales tax, register separately for sales tax and obtain a Sales Registration Number (SRN).

FBR registration: fbr.gov.pk

Step 6 — Open a business bank account

With your incorporation certificate (if company), NTN and proof of address, open a bank account in the business name. Use bank transfers or banker’s cheques for major payments — cash payments complicate audits and accounting.

Step 7 — Obtain local licenses and permits

Depending on your business activity and location you may need:

• Trade license from the municipal authority or cantonment board.
• Sector-specific permits (food safety, drug license, export/import licenses, environmental clearances).
• Registration with provincial authorities for labour or industry boards if applicable.

Step 8 — Comply with labour, social security and payroll obligations

If you employ staff, register for social security, EOBI (where applicable), and ensure payroll deductions (income tax, contributions) are correctly handled. Maintain proper employment contracts, attendance and payroll records.

Step 9 — Maintain accounting and file tax returns

Keep accurate books of account and file annual returns: companies must file annual returns with SECP and tax returns with FBR. Failure to file timely returns attracts penalties and compliance risks.

Common practical tips

• Engage a chartered accountant early for tax planning and compliance setup.
• Use digital accounting software from day one to track sales, purchases and payroll.
• Keep separate personal and business finances to preserve limited liability protections.
• Document major decisions by resolution and keep board minutes (for companies).
• Verify landlord ownership and get a clear lease; attach a proof of premises to registration documents.

Important: Rules and fees change. Always confirm current rates and procedures on official SECP and FBR portals or consult a qualified professional before finalizing incorporation steps.

Post-registration checklist

1. Secure incorporation / registration certificate and store originals safely.
2. Complete NTN and sales tax registrations (if applicable).
3. Open business bank account and set up online banking.
4. Apply for trade license and required sector permits.
5. Start structured accounting and schedule tax filings.

Where to get help

For straightforward setups, SECP and FBR online services provide stepwise guidance. For more complex structures or foreign investment, consider engaging corporate lawyers and chartered accountants to ensure regulatory compliance and efficient tax structuring.

Disclaimer: This guide provides general information only and is not legal or tax advice. Procedures, fees and requirements may change — consult official government portals or a qualified professional for personalised assistance.

© Lets-Legislate