Call CenteR and SOFTWARE HOUSE/IT Company Registration in Pakistan
Pakistan in year 2019 earned almost $1Billion dollars in the IT sector by providing different information technology (IT) related services to various countries throughout the world including America, South Africa, Australia and Middle Eastern Countries. This shows growth of 29% compared to $703 million earned during the Year 2018.
Pakistan is one of the emerging countries which are exporting IT and Call Center services to different countries around the world and are playing an important role in bringing foreign revenue in Pakistan. Day by day, the demand for IT Services and Call Centers is increasing in Pakistan which means that awareness for IT Sector and Call Centers in also rapidly increasing. It may not be out of place to mention here that Pakistan is becoming another most prominent country in exporting IT and Call Center services.
Tax Credits for Call Center & SOFTWARE HOUSE/IT Companies in Pakistan
Government of Pakistan considering the potential and for the purpose to promote IT Sector and Call Centers previously exempted foreign income of any person engaged in rendering IT services and running Call Centers in Pakistan till 30th June, 2025. However, in recent reforms while withdrawing exemption, government of Pakistan has offered IT Sector and Call Centre to seek 100% tax credit with no requirement of Turnover Tax. Four major requisites for claiming 100% tax credit are as follow:
- Monthly withholding statement under Section 165 of ITO 2001 duly filed
- Withholding tax is deposited with national exchequer
- Income tax Return
- Provincial Sales Tax return must be filed with provincial government such as PRA and Sindh Revenue Board Etc.
For detailed information on how to claim 100% tax credit read through our recent article on Income Tax on IT Services in Pakistan.
Call Center and SOFTWARE HOUSE/IT Company Registration in Pakistan
For the purpose to develop IT business or Call Center require to first make an establishment in Pakistan. There are different ways by which a business can be established in Pakistan. Like other Countries, in Pakistan as well there are multiple business structures to choose from. For Example Sole Proprietorship, Partnership Firm, Single Member Company (SMC), Limited Liability Partnership (LLP) and Private Limited Company. Business structure to choose from is based on ones’ personal needs and requirements. We highly recommend that you consult a professional lawyer to advice you on benefits for each business structure. However, majority of IT businesses or Call Centers in Pakistan are registered from amongst below:
‘Sole Proprietorship’ also known as Proprietor Concern can be opted where there is only one owner to manage and control business. Sole Proprietorship is one of the most convenient Business structure in Pakistan. There is no difference between business and the owner business.
Please Follow the link for the Sole Proprietorship Business Registration process HOW TO REGISTER A SOLE PROPRIETORSHIP IN PAKISTAN?
‘Partnership Firm’ is formed under Partnership Act, 1932 in Lahore under which two or more partners join hand to work together for a similar cause only to share profit and loss. Profit and loss are divided based on a terms and conditions of partnership which are executed by writing between 2 or more partners. Thus business and disputes emanating among partners are dealt according to Partnership Deed. Most of the time, stereo drafts are used to formulate Partnership which later cause hardship. It is therefore, strongly advised to consult a professional lawyer who will understand your needs and requirements and draft a Partnership deed accordingly to ensure maximum protection to you in business in case of dispute surfacing between partners anytime in future.
Please Follow the link for the Partnership Firm Registration Process HOW TO REGISTER A PARTNERSHIP FIRM IN PAKISTAN ?
‘Private Limited Company’ is a business structure that can be opted in case there are 2 or more directors or shareholders to run a business. There can be as many as 50 directors or shareholders of company. Private Limited Company cannot trade its shares publicly. This structure is not just considered the most organized and secure but also that in case of dispute, directors or shareholders are only liable to extent of their shares in company. This mean their personal assets are secure and cannot be attached for the purpose to liquidate a liability in the Court of law. Company is registered with Security Commission of Pakistan in terms of Companies Act, 2017.
Please Follow the link for the Private Limited Company Registration Process HOW TO REGISTER A PRIVATE LIMITED COMPANY IN PAKISTAN ?
How to Register software house/IT Company and Call Center with Pakistan Software Export Board (PSEB)
Pakistan Software Export Board (PSEB) is a department of Government of Pakistan and is working to promote IT industry in Pakistan both locally and globally by not only conducting researches and develop IT related policy in line with other Governmental bodies but also registering IT businesses in Pakistan. Company Registration with PSEB is compulsory to attain the benefits of Tax exemption from the Income Tax Department in Pakistan.
Government of Pakistan requires mandatory registration of IT businesses and Call Centers with the Pakistan Software Export Board (PSEB) to monitor IT remittances from abroad. This not only helps in documenting economy but also help understanding potential areas where IT sector can help promote economy of country by inviting more remittances to Pakistan. IT companies in Pakistan are developing IT softwares, mobile games and mobile applications for smartphones.
Registration requires to fill online form at PSEB website with relevant information including the services provided, number of employees with designation, business address etc. After the necessary information is filled, the documents required for registration are attached with the form and submitted for scrutiny by PSEB. In case of no objection registration is completed and certificate is dispatched at the mailing address provided in the form.
Required Documents for software house/IT COMPANY registration with Pakistan Software Export Board (PSEB)
- Business NTN
- CNIC of all Directors / Shareholders / Partners / Proprietor
- Passport copy of Directors / Shareholders / Partners (for foreign nationals only)
- Attested copy of Memorandum and Articles of Association (for SECP registered companies only)
- Attested copy of Form 29 (for SECP registered companies only)
- Attested copy of Incorporation certificate (for SECP registered companies only)
- Attested copy of Partnership deed (for Partnership based firms)
- Attested copy of Firm registration certificate (for registered firms)
- Business Bank Statement of the preceding six months
Business Bank Account Letter/Certificate (In case of new account)
|Startup only (founded within the last one year).||Rs. 5,000/-|
|IT business founded since more than one year.||Rs. 10,000/-|
Required Documents for CALL CENTER registration with Pakistan Software Export Board (PSEB)
- Business NTN.
- Passport copy of Directors / Shareholders / Partners (for foreign nationals only).
- Attested copy of Memorandum and Articles of Association (for SECP registered companies only).
- Attested copy of Form 29 (for SECP registered companies only).
- Attested copy of Incorporation certificate (for SECP registered companies only).
- Attested copy of Partnership deed (for Partnership based firms).
- Attested copy of Firm registration certificate (for registered firms)
- Business Bank Statement of the preceding six months.
Business Bank Account Letter/Certificate (In case of new account).
|Annual registration fee for principal/main office||Rs. 20,000/-|
|Annual registration/Renewal for each branch||Rs. 10,000/-|
At Hamza and Hamza Law Associates we have profound experience of assisting in process of Call Centre & Software House/IT company Registration in Pakistan. In case if you have any queries feel free to contact us.