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Company Registration in Pakistan: FBR vs SECP

Company registration in Pakistan is monitored by both the FBR (Federal Board of Revenue) and the SECP (Securities and Exchange Commission of Pakistan).

If you're operating as a sole proprietor, registration is done only with the FBR, which makes it simpler and easier to manage. However, a Private Limited Company or Single Member Company (SMC) must be registered with both FBR and SECP, and must adhere to all compliance requirements under the Companies Act and Company Ordinance.

This structure provides credibility, transparency, and legal protection, but also comes with annual filing and audit obligations.

Why Register a Company?

Registering your company under the Securities and Exchange Commission of Pakistan (SECP) offers multiple benefits:

Legal Recognition

Get official legal recognition for your business under SECP registration.

Corporate Identity

Establish strong brand credibility and corporate identity in the market.

Limited Liability

Protect shareholders with limited liability protection.

Banking Access

Open business bank accounts and access financial services.

Funding Access

Access funding, tenders, and government contracts easily.

Global Operations

Work with foreign clients and platforms like Amazon, Upwork, etc.

Types of Company Registration in Pakistan

A business owned and operated by a single individual. Simple registration process with FBR only. The owner has complete control but also bears all liabilities personally.

Advantages

Simple and inexpensive to establish
Complete control over business decisions
Minimal regulatory requirements
No separate tax filing (personal income tax only)
Easy to dissolve or transfer ownership

Limitations

Unlimited personal liability for business debts
Limited access to capital and financing
Business existence tied to owner's life
Less credibility with clients and vendors
Limited ability to work with international platforms

A Private Limited Company with only one director/shareholder. Provides limited liability protection while allowing sole ownership. Must be registered with both FBR and SECP.

Advantages

Limited liability protection for personal assets
Enhanced credibility with clients and partners
Perpetual existence independent of owner
Easier access to business loans and capital
Ability to work with international platforms

Limitations

Higher setup and maintenance costs
More regulatory compliance requirements
Annual filing and audit obligations
More complex tax filing requirements
Requires maintaining proper corporate records

Key Requirements

Minimum paid-up capital of PKR 100,000
One director who is also the sole shareholder
Registered office address in Pakistan
Memorandum & Articles of Association
Digital signature from NIFT
Annual returns and financial statements

A business entity with multiple shareholders (minimum 2, maximum 50) with limited liability. Shares cannot be offered to the general public. Provides a formal structure with clear separation between company and personal assets.

Advantages

Limited liability protection for all shareholders
Enhanced business credibility and professional image
Easier to raise capital through multiple shareholders
Perpetual existence independent of shareholders
Transferable ownership through share transfers
Tax benefits and deductions not available to individuals

Limitations

More complex and costly to establish than sole proprietorship
Extensive regulatory compliance requirements
Mandatory annual audits and financial reporting
Cannot raise funds from the general public
Decision-making may require shareholder consensus
Double taxation in some cases (corporate and dividend tax)

Key Requirements

Minimum 2 shareholders, maximum 50
At least 2 directors (can be shareholders)
Minimum paid-up capital of PKR 100,000
Registered office address in Pakistan
Memorandum & Articles of Association
Annual returns and audited financial statements
Company secretary appointment
Annual general meetings

A business arrangement where two or more individuals share ownership and responsibilities. Partners share profits according to the partnership deed and are jointly liable for business debts.

Advantages

Easy and inexpensive to establish
Shared financial investment and risk
Combined knowledge, skills and resources
Flexible management structure
Less regulatory compliance than companies
Tax advantages (pass-through taxation)

Limitations

Unlimited liability for all partners
Each partner liable for actions of other partners
Potential for conflicts between partners
Limited life (dissolves if partner leaves)
Difficult to raise large amounts of capital
Less credibility than incorporated entities

Key Requirements

Partnership deed/agreement
NTN registration with FBR
Bank account in partnership name
CNIC copies of all partners
Business address proof
Annual tax returns

Limited Liability Company structure that combines elements of partnership and corporation. Provides liability protection while allowing flexible management structure and tax benefits.

Advantages

Limited liability protection for all members
Flexible management structure
Pass-through taxation (no double taxation)
Less formalities than a corporation
Easier to attract investors than partnerships
No restriction on number of members

Limitations

More complex to set up than sole proprietorship
Self-employment taxes for managing members
Requires more record-keeping than partnerships
Ownership transfer restrictions
Limited ability to raise capital compared to corporations

Key Requirements

Minimum 2 designated partners
LLP Agreement
Registered office address in Pakistan
Name approval from SECP
Statement of partners and registered office
Annual statement of accounts and solvency

Documents Required for Company Registration

NIC copy
All shareholders/partners
Business Address
Physical location of business
Business Name
Provide 3 options
Company Type
SMC, Private Limited, etc.
Nature of Business
Business activities description

Memorandum of Association
Prepared by our expert
Articles of Association
Prepared by our expert
Share Structure
Shareholding details
Mobile Numbers
All shareholders
Email Addresses
All shareholders
NTN Numbers
All partners

Company Registration

Company Registration in Pakistan: FBR vs SECP

Why Register a Company?

Legal Recognition

Corporate Identity

Limited Liability

Banking Access

Funding Access

Global Operations

Types of Company Registration in Pakistan

Sole Proprietor

Advantages

Limitations

Single Member Company (SMC)

Advantages

Limitations

Key Requirements

Private Limited Company

Advantages

Limitations

Key Requirements

Partnership Registration

Advantages

Limitations

Key Requirements

Limited Liability Company (LLC)

Advantages

Limitations

Key Requirements

Documents Required for Company Registration

Company Registration Process

Name Availability

Document Preparation

SECP Filing

Certificate Issuance

Tax Registration

Why Choose Go Wakeel for Company Registration?

Fast Processing

Expert Guidance

Ongoing Support

Frequently Asked Questions

How long does it take to register a company in Pakistan?

What is the minimum capital requirement for company registration?

Can foreigners register a company in Pakistan?

What ongoing compliance requirements exist after registration?

What's the difference between NTN and STRN registration?

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