Legal Process for Company Registration in Pakistan – 2025 Guide

Starting a company in Pakistan requires following a structured legal process. The government has simplified procedures in recent years to encourage entrepreneurship and attract investment. Whether you are launching a small startup, a medium-sized enterprise, or a large corporation, understanding the company registration process is essential to operate legally and build credibility.

✅ Types of Companies You Can Register in Pakistan

Before starting, you need to decide the company structure:

1. Private Limited Company (Pvt Ltd)

   • Most common choice for startups and businesses.

   • Requires at least two shareholders and two directors.

   • Liability of shareholders is limited to their investment.

2. Single Member Company (SMC)

   • Suitable for solo entrepreneurs.

   • Only one shareholder is required, but a nominee must be appointed.

3. Public Limited Company

   • Can raise capital from the public.

   • Requires at least three directors and seven shareholders.

   • Ideal for large businesses planning to be listed on the stock exchange.

4. Nonprofit Association (NGO / NPO under Section 42)

   • Registered for charitable, educational, or social purposes.

   • Cannot distribute profits among members.

Step-by-Step Legal Process for Company Registration

1. Name Reservation

• Choose a unique name for your company.

• The name must not be identical, misleading, or offensive.

• It should also comply with guidelines restricting certain terms like “Federal,” “National,” or “Corporation” unless approved.

2. Preparation of Documents

You need to prepare and submit the following documents:

• Memorandum of Association: States company objectives and scope of activities.

• Articles of Association: Defines rules of internal management.

• CNIC copies of directors/shareholders.

• Incorporation forms with required details (registered address, directors, share capital, etc.).

• Declaration of compliance signed by a director or company secretary.

3. Submission of Incorporation Application

• Submit documents to the Securities and Exchange Commission of Pakistan (SECP).

• This can be done online or through physical submission at the Company Registration Office (CRO).

4. Payment of Government Fees

• The registration fee depends on the type of company and the amount of authorized share capital.

• Payment is made to the designated bank.

5. Scrutiny and Approval

• SECP examines the application and documents.

• If everything is in order, the certificate of incorporation is issued.

• Any discrepancies may require corrections and resubmission.

6. Certificate of Incorporation

• Once approved, you receive the Certificate of Incorporation.

• The company legally comes into existence from this date.

⚖ Post-Incorporation Requirements

After registration, a company must complete these legal steps to start operations:

1. National Tax Number (NTN)

   • Obtain NTN from the Federal Board of Revenue (FBR).

   • Mandatory for taxation, opening a bank account, and legal transactions.

2. Sales Tax Registration (if applicable)

   • Required if your company provides taxable goods/services above the threshold limit.

3. Company Bank Account

   • Open a business account in the company’s name using the incorporation certificate and NTN.

4. Employees’ Benefits Registration

   • Register with relevant authorities for employee benefits, such as:

     • Employees’ Old-Age Benefits Institution (EOBI).

     • Social Security Institutions (provincial).

5. Annual Compliance

   • File annual returns and financial statements with SECP.

   • Hold annual general meetings (for private and public companies).

   • Pay taxes and submit required FBR returns.

Benefits of Registering a Company

• Legal Recognition: Gives your business a separate legal identity.

• Limited Liability: Protects shareholders’ personal assets.

• Credibility: Builds trust with investors, clients, and financial institutions.

• Tax Advantages: Eligible for certain deductions and incentives.

• Access to Funding: Makes it easier to raise capital from investors or banks.

Costs & Timelines

• Name reservation fee: Nominal, depending on mode of application.

• Incorporation fee: Varies based on authorized share capital (higher share capital means higher fee).

• Timeline: If all documents are in order, incorporation can be completed within 3–7 working days.

⚠ Common Mistakes to Avoid

• Choosing a name too similar to an existing company.

• Submitting incomplete or incorrect documents.

• Not preparing a clear memorandum of association (unclear objectives may cause rejection).

• Missing post-incorporation compliance, leading to penalties.

• Not seeking professional guidance for complex structures (public or nonprofit companies).

Final Thoughts

The process of company registration in Pakistan has become more streamlined, but it still requires careful preparation of documents and compliance with SECP requirements. Hiring a corporate lawyer or professional consultant can simplify the process, especially for entrepreneurs unfamiliar with legal formalities.

A properly registered company not only protects its founders but also strengthens its position in the market, giving it credibility and opportunities for growth.