HOW TO REGISTER A PRIVATE LIMITED COMPANY IN PAKISTAN ?
Why to register a Company?
We at Hamza and Hamza based on the requirements of business in the emerging markets of Pakistan often assist our clients in company registration in Pakistan. Registration of Private Limited Company has some major benefits over other types of business establishments.
Step to Step Procedure for Registration of Private Limited Company in Pakistan:
- E-services registration
As a first step you have to register your account on E-service portal regulated by Security Exchange Commission of Pakistan. It is a simply process that registers you credential with basis information like your cnic number, mobile number and email. In case if you are a foreign national in Pakistan you will additionally be required to provide you passport information along with foregoing information and a photograph. After you have successfully signed-up, two separate pins both at your phone number and email shall be received for verification purposes. Following the verification process you will receive a unique PIN to sign the forms and submit them to SECP.
2. Apply for availability of name
For the purpose of company registration in Pakistan the first phase is to apply for the name of the company. You cannot simply be allowed a name which is already registered with SECP or is already in use. So to ensure that the name of business you wish to register is not already in use, you can search the name on SECP website at Company name search. If no results are found on SECP this means that name is available for purpose of company registering – business registration in Pakistan and you can request for reservation of that name for yourself.
3. Company Name Reservation
After the name is applied with SECP and such name is available with SECP, same will be reserved for a period of 60 days for you to start the Company registration process. The name reservation form is required to be filed online after you login into E-services.
4. Memorandum of Association
Memorandum of Association is the charter of a company. It serves as the charter of the company being registered. It not merely spells out the vision, scope and mandate of the company but also discloses the detail particulars of its shareholders and the composition of shares each shareholder or subscriber enjoys in the business amongst others. Memorandum of Association is filed along with application for company registration in Pakistan.
5. Articles of Association
Articles of Association on the other hand is termed as the constitution of the company. It provides the provisions on internal operations to be carried out on daily basis etc. of the company. It further provides with the provisions to appoint Chief Executive, Directors, secretary etc of the company. Article of Association is also filed along with application for company registration in Pakistan.
6. Submission of Forms
Process of Company Registration in Pakistan can be applied both online and offline. For a paper-free environment it is highly recommended by SECP to file applications online. Process of online company registration in Pakistan is being promoted by SECP and is followed by 50% fee concessions. For online process for Company Registration requires filing joint application for name availability and company registration. if required you can also separately file applications for both phases online. Application of company Registration is to be accompanied by Memorandum of Association, Article of Association and the application for name availability using E-services portal. In that case all fees payable can be paid online using credit card or online banking.
In case of offline method for filing application for company registration in Pakistan you are required to generate challan manually and after making payments same shall be manually filed along with the signed application and the foregoing documents with SECP.
7. Processing Time
SECP has recently revamped the process of company registration in Pakistan for which new and convenient procedure has been introduced. The process for company Registration therefore, has become advanced and expeditious. Applications are now process within a few hour so you do not have to wait a week or a month any more for registration of your new business.
Benefits of Company Registration in Pakistan
Company registered in Pakistan in also termed as a limited liability company. This means that affairs of the directors or subscribers are different from that of the affairs of the company. Directors or owners of the company cannot be personally held liable for the affairs of the company or its liability. Registered company in Pakistan is an artificial person, a corporate body with separate legal entity and a perpetual succession with unlimited life. Registered company is not dissolved upon death of its subscribers, stakeholders or employees as the case may be.
Owners of the company can sell their interest in company to any third person or party and can be easily transferred to another person after a resolve by the Board in its annual general meeting and consequently with approval of SECP.
Company is the most organized structure considered amongst all the entities established in Pakistan. Government of Pakistan in pursuit to develop and promote documented economy has introduced several tax benefits, concessions and rebates for start-up businesses. Most of these benefits are merely available only when the business is registered as a company in Pakistan. Even tax rates for companies are far lesser than other business and almost all the business expenses are deductible subject to procedural compliances provided by law if any.
It is interesting that SECP is the regulator of company and in case if a management dispute arises between the directors or shareholders, parties without resorting to the court for resolution of their dispute can opt for summary procedure for resolution of dispute by filing representation before SECP which is adjudicated under the process of Companies Act 2017.
At Hamza and Hamza Law Associates we have profound experience of assisting in process of company Registration in Pakistan. In case if you have any queries feel free to contact us.