Starting a business and registration go hand in hand. When you decide to start a business, you must register your firm with the appropriate government authorities to establish its legal existence.
Business registration is a formal process that gives your business legal recognition and certain rights and responsibilities.
The purpose of business registration is to ensure that your business operates within the legal framework and complies with government regulations.
It also allows you to access certain benefits and protections associated with running a legitimate business, such as opening a business bank account, entering into contracts, and hiring employees.
Let’s decode the processes involved in registering a private limited company in Pakistan, FBR requirements, construction and architecture firms registry method.
The foremost step is registering your business with the Federal Board of Revenue. It is a legal and essential step to being a citizen of Pakistan.
Now the question arises of why and how you need to get registered with FBR.
In Pakistan, FBR (Federal Board of Revenue) registration is required when getting your business registered for several reasons.
The FBR is responsible for administering tax laws and collecting revenue on behalf of the government.
Here are a few reasons why FBR registration is necessary:
The NTN is required for various tax-related activities, such as filing tax returns, paying taxes, and conducting business transactions.
FBR registration is a prerequisite for obtaining a sales tax registration number (STRN).
To register with the FBR, you will need to apply online through the Iris system, along with the following documents:
Once your application is processed, you will receive your NTN and STRN, necessary for conducting business in Pakistan.
Another important action in business registration in Pakistan is to get a Digital Signature Certificate (DSC) and National Tax Number (NTN) for the directors and shareholders of the company.
The DSC is a secure digital key used to sign documents electronically, while the NTN is a unique identifier for tax purposes.
Once you have obtained the DSC and NTN, you can register your company online through the Securities and Exchange Commission of Pakistan (SECP) e-Services portal.
For instance, if you are starting any of the manufacturing businesses in Pakistan, you must get business registration done online.
For that purpose submit specific information and documentation, including:
You must choose a unique name for your company and check its availability on the SECP website.
Once you have chosen a name, you can reserve it for 90 days by submitting an online application and paying the requisite fee.
The MOA and AOA are the legal documents that define the purpose and scope of your company's business activities and its internal governance structure.
You can prepare these documents yourself or seek the assistance of a legal professional.
You will need to provide details of the shareholders and directors of your company, including their names, addresses, contact information, and shareholding percentage. All directors must have a DSC and NTN.
You must provide the address of your company's registered office, which must be a physical location in Pakistan.
You must pay the requisite fee to register your company, which can be done online through the SECP e-Services portal.
Once you have submitted your application and all required documents, the SECP will review your application. If everything is in order, issue a Certificate of Incorporation, which signifies that your company has been legally registered.
A private limited company is a business entity owned by shareholders and managed by directors. It is Pakistan’s most common form of business structure and is preferred by investors due to its limited liability and ease of operation.
To register a private limited company in Pakistan, you must follow the steps outlined above for online company registration in Pakistan.
You will need to comply with the following legal requirements:
For a private limited company, it is mandatory to have a minimum of two directors and shareholders. However, there is no maximum limit imposed on the number of shareholders.
A private limited company provides limited liability security to its shareholders, which means that their personal assets are protected in the event of the company's bankruptcy or financial difficulties.
This is a vital advantage of the private limited company structure and provides security and protection to shareholders.
The lowest paid-up capital required for a private limited company is Rs. 100,000, although this condition has been exempted for most industries.
A private limited company must conduct an annual statutory audit of its accounts, which a qualified auditor must carry out.
A private limited company is required to file annual returns and financial statements with the SECP and FBR and hold an annual general meeting (AGM) of shareholders.
By complying with these legal requirements, a private limited company can operate legally in Pakistan and enjoy the benefits of limited liability, tax incentives, and easy access to funding.
To register a construction firm in Pakistan, you must follow the same steps as registering a private limited company.
You will need to obtain a license from the Pakistan Engineering Council (PEC), the regulatory body for the engineering profession in Pakistan.
To obtain a PEC license, you will need to provide the following documents:
Supremely you must know how to start a construction business in Pakistan. Once your application is approved, you will receive a license from the PEC, valid for three years.
By obtaining a PEC license, your construction firm will be recognized as a qualified and competent provider of engineering services in Pakistan.
To register an architecture firm in Pakistan, you must follow the same steps as registering a private limited company.
In addition, you will need to obtain a license from the Pakistan Council of Architects and Town Planners (PCATP), the regulatory body for the architecture profession in Pakistan.
To obtain a PCATP license, you will need to provide the following documents:
Once your application is approved, you will receive a license from the PCATP, which is valid for three years.
By obtaining a PCATP license, your architecture firm will be recognised as a qualified and competent provider of architectural services in Pakistan.
Starting a business in Pakistan can be challenging. Still, it can be even more daunting if you need the proper legal documentation.
Firm registration is crucial to running a business in Pakistan, as it provides a legal framework for your business operations.
Firm registration provides legal recognition to your business. It gives your corporation lawful originality and protects it from legal disputes.
Once your firm is registered, you can open a bank account in your business name, which makes it easier to manage your finances.
Registered firms can avail of tax benefits and exemptions, which can help reduce the overall cost of doing business. Overall paying property tax to FBR is the duty of every citizen.
Firm registration boosts the credibility of your business in the visions of clients, suppliers, and investors. It shows that your business is legitimate and complies with all legal requirements.
Registering a firm in Pakistan can be a challenging process. Still, by following the steps outlined above, you can streamline the process and ensure that your company complies with all legal requirements.
Whether starting a private limited company, a construction firm, or an architecture firm, the key to success is to be prepared, informed, and patient.
With the right guidance and support, you can establish a thriving business in Pakistan and contribute to the country's economic growth and development.
Having the most beautiful, most reliable looking interior and architecture for your personal space or official building...
Updated by Admin / 20 February 2023
Having the most beautiful, most reliable looking interior and architecture for your personal space or official building...
Updated by Admin / 20 February 2023
Having the most beautiful, most reliable looking interior and architecture for your personal space or official building...
Updated by Admin / 20 February 2023
Office # 7, 5th Floor, Al-Latif Center, Main Boulevard Road, Gulberg-III, Lahore
+92 311 1127 522
Stay Updated with ARKAA Real Estate News Letter