In Pakistan, there are several types of companies, these include:
- Private Limited Company: This is a type of company that is privately owned and controlled by individuals as shareholders, who have limited liability for the company’s debts. A private limited company must have at least two shareholders. Shares in private limited company are not available for purchase for general public. A Private Company can have as many office in entire Pakistan.
- Public Limited Company: This is a type of company that is also owned and controlled by its shareholders, who have limited liability for the company’s debts. However, a public limited company must have at least seven shareholders and there is no maximum limit on number of shareholders. This type of company is typically listed on a stock exchange and its shares can be bought and sold by the general public. A Public Company can also have as many office in entire Pakistan.
- Single Member Company: This is a type of private limited company that has only one shareholder. A Single Member Private Limited Company can also have as many office in entire Pakistan.
- Foreign Company: This is a company that is incorporated outside of Pakistan but carries out business activities within the country. A foreign company must register with the Securities and Exchange Commission of Pakistan (SECP) in order to do business in Pakistan.
- Partnership Firm/Association of Persons (AOP): This is a type of business entity that consists of two or more individuals who come together to carry out a business activity and are generally referred to as Partners. Liability of a Partnership Firm / AOP and its partners is deemed the same. A Partnership Firm can have as many office in a district.
- Limited Liability Partnership (LLP): This is a type of Partnership business in which partners have limited liability to extent of contribution in LLP. Limited Liability Partnership can also have as many offices in entire Pakistan.
- Sole Proprietorship: This is a type of business that is owned and operated by one individual, who is personally responsible for all of the business’s debts and liabilities. A Sole Proprietor business can only run business on its sole registered business address.
These are the main types of entities to choose from while registering a business in Pakistan. Which entity to choose for business depends upon several factors including the applicability of taxation on certain trade or industry and specific requirement of regulatory authority. It is recommended to consult our expert corporate lawyers who advise you the most convenient and effective entity for your business.