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REGISTRATION OF A COMPANY IN PAKISTAN
Pakistan is 26th largest economy in the world. Considering the potential market growth, several foreign companies are establishing new business branches in Pakistan. Some of these businesses are looking for investment in start-ups or companies with new or different ideas such as Current Year Best Business Ideas.
On the other hand, each year thousands of students graduate from different universities of Pakistan and establish their own startups. Some of the successful start-up companies include Foodpanda, Zameen.Com, Grocers, Pakwheels, Sabzi.com amongst others. Owing to Government initiates and awareness around technology and entrepreneurship, several universities have entrepreneurial societies to inculcate the spirit of learning in young students. The result? We now have several hundred startups who work to improve the life of people around the world, make profitable business ventures, and increase job creation.
STARTUP/COMPANY REGISTRATION IN PAKISTAN
Every business requires registration to operate its activities in Pakistan. In a similar manner, startup/companies also require registration before they can start their operations. Expert Corporate Lawyers at KRC & krc have great deal of experience in offering corporate legal services to our clients. We are proud to have registered several successful start-ups in Pakistan. It is mainly because we do not let you lose focus and attention from your business while we take care of the registration process and other legal issues pertaining to registration of the company. It is a simple trick that eventually lead our clients save more time and energy to invest in their business and they become successful and more powerful business.
WHAT ARE DIFFERENT WAYS TO ESTABLISH BUSINESS IN PAKISTAN?
There are several ways by which a person can establish a business in Pakistan. Different forms of business establishments include Sole Proprietorship, Partnership Firm, Joint Ventures/ Collaborations, Association of Persons, Company etc. The most common business establishments in Pakistan are as follow:
Sole Proprietorship also known as Proprietor Concern can be opted where there is one owner to manage and control business. This may be the most convenient structure in business but it is least efficient and reliable when drawn an analogy with other business structures. Another important fact to consider is that there is no difference in liability of proprietor or his business. We charge Rs. 5000/- for Registration of Proprietorship business. You can click on the link below to know complete Procedure of Registration of Sole Proprietorship Business HOW TO REGISTER A SOLE PROPRIETORSHIP IN PAKISTAN?
Partnership Firm is formed under Partnership Act, 1932 in Lahore under which two or more partners pooling their skills and sources to work together for a similar cause only to share profit and loss. Profit and losses are divided based on a terms and conditions of partnership which are executed by writing between 2 or more partners. Partnership is deemed most convenient structure as it is registered after the partners chalk out detailed terms and condition of venture. Thus business and disputes emanating among partners are dealt according to Partnership Deed. We have however, experienced in several instances that partners for failing to define the full rights and obligation encounter disputes which lead to legal claims in court. Most of the time, it is because the stereo drafts are used to formulate Partnership which later cause hardship. It is therefore, strongly advised to consult a professional lawyer who will understand your needs and requirements and draft a Partnership deed accordingly to ensure maximum protection to you in business. We charge Rs. 14,999/- for registration of Partnership Firm. Click on the link for the complete procedure for registration of Partnership Firm HOW TO REGISTER A PARTNER SHIP FIRM IN PAKISTAN?
Private Limited Company is of two types; Single Member (SMC) Private Limited Company where there is one director; and in case of 2 or more directors, a Private Limited Company. There can be as many as 15 directors or shareholders in a company. Private Limited Company cannot trade its shares publicly. This structure is not just considered the most organized and secure but also that in case of dispute, directors or shareholders are only liable to extent of their shares in company. This mean their personal assets are secure and cannot be attached for the purpose to liquidate a liability in the Court of law. Company is registered with Security Commission of Pakistan in terms of Companies Act, 2017. In case of management disputes, directors instead of approaching the court can file complaint to Registrar SECP who adjudicate the dispute efficaciously and effectively. We charge Rs. 15,000/– to register a company with local directors. Click on the link below for the complete procedure on registration of Private Limited Company in Pakistan HOW TO REGISTER A PRIVATE LIMITED COMPANY IN PAKISTAN ?
WHICH IS THE MOST BENEFICIAL TYPE OF BUSINESS ESTABLISHMENT?
The decision to choose the beneficial type of establishment is completely based on the particular nature of business, as every sector has its own benefits and drawbacks. While choosing the right type of establishment for any business sector, some major factor that need to be considered include Tax benefits and exemptions in a particular sector, loan finance requirements, legal benefits and impediments, scope and object of business, flexibility of operations and other underlying factors.
The Expert Corporate Lawyers at KRC assist in deciding the most beneficial, effective and reliable business structure that fits your line of business. Once you are clear on which business structure suits you best, we initiate the process upon your approval without you worrying about the tiring and hectic process of registration.
Business type where more than one persons are partner in a business and they are agreed to share the profit of a business.
Partnership Act, 1932, deals with all affairs relating to partnership firms , for instance dissolution of firms, retirement and death of partners and auxiliary issues.
An applicant shall make separate application for incorporation of company either online
through e-service or in physical form to the registrar as per Inc. Form-II along with the following
documents,-
(i) Memorandum
(ii) Articles where required;
(iii) Copies of valid NIC/NICOP (national identity card/ national identity card for overseas
Pakistanis) of the subscribers/ directors/chief executive officer or copies of valid
Passport in case of a foreigner;
(iv) in case of a single member company copy of valid NIC/NICOP of nominee or copy of
valid Passport in case of a foreigner;
(v) copy of NIC of witness in case of physical filing of application;
(vi) in case of physical application, authority letter on stamp paper of requisite value in
favour of any one of the subscribers or registered intermediary, authorizing him to file
documents for incorporation of company on behalf of subscribers, make correction
therein, if required and collect certificate of incorporation and other documents after
incorporation of company. The authority letter shall be witnessed with his particulars
and shall also be notarized;
(vii) NOC/Letter of Intent/ License (if any)/ approval letter of the relevant regulatory
authority in case of specialized business as mentioned in regulation 4;
(viii) in case of physical application, original paid bank challan or other evidence of payment
of fee specified in Seventh Schedule of the Act.
(ix) copy of valid NIC/Passport of person duly authorized by the Board of directors of a
body corporate which is a subscriber along with copy of Board resolution. In case of a
subscriber which is a limited liability partnership, copy of valid NIC/ Passport of
designated partner empowered to act as such, along with copy of instrument
empowering him.
(x) in case the subscriber is a foreign company or a foreign body corporate, the profile of the
company, detail of its directors, their nationality and country of origin, copy of its charter,
statute or memorandum and articles etc., certified in the manner as specified in regulation 15. More >>