Sole Proprietor

What are different ways to establish business in Pakistan

There are several ways by which a person can establish a business in Pakistan.  Different forms of business establishments include Sole Proprietorship, Partnership Firm, Joint Ventures/ Collaborations, Association of Persons, Company etc. However, the most common business establishments in Pakistan are as follow:

  • Sole Proprietorship
  • Partnership Firm
  • Private Limited Company

    Which is the most beneficial type of business Establishment?
    The decision to choose the beneficial type of establishment is completely based on the particular nature of business as every sector has its own benefits and drawbacks. While choosing the right type of establishment for any business sector, some major factor that need to be considered including Tax benefits and exemptions on a particular sector, loan finance requirements, legal benefits and impediments, scope and object of business, flexibility of operations and other underlying factors.
    What is Sole Proprietor
    Sole Proprietor is a simplest type of business establishment also referred to as Proprietorship or Proprietor concern. Any person willing to operate its business solely can register as a Sole Proprietor and in such case liability of Sole owner or Proprietor ship business is unlimited. This means that there is no difference between the person and his business and the tax activity of business will be that of the person. However, as context implies sole proprietor shall run his business alone but he can certainly hire employees for his prosperous business.  As a sole proprietor, person is entitled to all profits and is responsible for all business’s debts, losses and liabilities. Tax return of Proprietorship concern is same as that of Sole owner. This means that owner shall not have to file two different Tax returns. Moreover, cheap capital requirement and easy start up makes it convenient to establish a sole proprietorship business whereas on the other hand non-professionalism and unlimited liability of sole proprietor is a major setback.If your are planning to establish a Proprietorship business or have already started your prosperous business, we at Hamza and Hamza provide legal services to our valued clients in the following ways:

    • Feasibility Report
    • Filing of Tax Returns
    • Record keeping and maintaining
    • Tax advisory and planning
    • Legal opinion and support

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