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Company Registration Process can be overwhelming, but it’s an important step in starting your business. The first step is to choose a unique name and do a name search to ensure its availability. Once you have a name, choose a legal structure, such as a sole proprietorship, partnership or corporation.
When you start a business, it is initially either a sole proprietorship or a partnership. However, as your business expands and targets new regions, a stronger and more reliable business structure becomes essential. To project reliability, raise capital, and limit liability, consider registering your company in Pakistan. A corporate entity offers several advantages:
Moreover, company registration in Pakistan offers additional benefits such as tax rebates for specific industries like IT exports. The government supports genuine businesses contributing to the country’s economic growth. Registered companies can participate in national and international exhibitions to expand their reach globally.
Many individuals lack awareness about the various legal methods for registering a business, finding it challenging to distinguish between them. Before delving into the process of registering a business in Pakistan, it’s beneficial to understand the different types of companies available. This knowledge will help you select the option that aligns best with your business model.
| Sr. #. | Kinds of Company | Required capital (minimum) | Required shareholders (minimum) | Time to incorporate |
|---|---|---|---|---|
| 1 | Single Member Company | Pkr. 150,000 | 1 | 2 weeks |
| 2 | Private Limited Company | Pkr. 180,000 | 2 | 3 weeks |
3 | Public Limited Company | Pkr. 250 million | 7 | 5 weeks |
| 4 | Nonprofit organization | Pkr. 100,000 | 3 | 5 weeks |
When a company is established by a single member, it is referred to as a single-member company. In this setup, ownership is retained by one individual, and shares cannot be allocated to more than one member. This option is ideal for sole proprietors seeking to incorporate their businesses independently, without the need for partners, while still enjoying the advantages of operating as a corporate entity.
A private limited company can be formed by two or more individuals who wish to formalize their business as a legal entity.
The formation of a private limited company in Pakistan is governed by the Companies Act, which outlines the necessary regulations.
This type of company grants autonomy in determining the number of members and imposes restrictions on share transfers.
According to regulations, a private limited company is prohibited from issuing shares or financial instruments to the general public.
To establish a public limited company, a minimum of three members is needed. This type of company is distinct from a private limited company as it is created for the general public. Public limited companies can issue shares to the public through a stock exchange or through an Initial Public Offering (IPO). Banks or financial institutions typically oversee IPOs on behalf of companies. Due to potential public investment, a public limited company usually requires a significant amount of capital.
If you aim to participate in public welfare endeavors to bolster your reputation and credibility, establishing a Nonprofit Company is recommended. Per regulations, a Nonprofit company can solely be incorporated as a public company. A stipulated contribution to the company is mandatory. Furthermore, a commitment to addressing the company’s debts up to a specified limit upon liquidation is required. The company’s name may exclude the designations “Limited” or “Guarantee Limited”.
The Memorandum and Articles of association is basic document that explain all the purposes of Company registration. In addition, the basic purpose of Company Registration Process is to engage in general contractors, trading companies, and other businesses. To complete the process of registering a Company in Pakistan, all businesses that the Company plans to do must be listed in a memorandum of understanding. Contains all the rules of the operating Company. How to manage directors, such as how a general meeting of a Company is held in the process of Company registration in Pakistan.
Form 1 for Company Registration Process is essentially a statement from one of the directors of the Company that is about to register. Form 1 can be downloaded from the Pakistan Securities and Exchange Commission website. This is another mandatory component of the Pakistan Company registration process.
Form 21 is a form through which the address of a Company undergoing the PakistanCompany Registration Process is communicated to the registrar.
Form 29 contains information about directors of a Company that is going through the Company Registration Process a Company in Pakistan.
After complying with all legal processes. The SECP department can verify the validity of digital signatures granted by the National Institutional Facilitation Technologies (NIFT) and obtain them through SECP.
The registration certificate is issued by SECP.
If you are willing invest in Pakistan, please contact us. Ahmed Ali Dewan & Co. handles Company registration process on behalf of you.
The company registration process in Pakistan might necessitate the preparation of all necessary documents to confirm your ownership of the business. As per the Companies Act, you will need to submit:
If you need the best legal advice, please feel free to contact us. Provide general information about the type of service you are seeking.
