Introduction:

Company registration in Pakistan is the first step towards successful business life. Over the years, SECP has minimized the regulations for the ease of doing business in Pakistan. This has attracted many foreign investment in Pakistan.

According to Securities and Exchange Commission of Pakistan (SECP) , there were more than 27,000 companies incorporated in Pakistan in F.Y. 2022 – 2023.

The online company registration in Pakistan process can take as little as 1 week. In this article, we will guide you what are the benefits of company and types of company you can register in Pakistan.

What are the types of Companies in Pakistan?

Understanding the types of company in Pakistan is the most important step. Pvt ltd company registration in Pakistan is most common. A business owner should know the basic differences before going for company registration process.

As per Companies Act, 2017 of Securities Exchange Commission of Pakistan, SECP, an individual can register various types of companies in Pakistan:

Type of Company	Minimum Required Capital	Minimum Required Shareholders	Time to Incorporate
Single Member Company	PKR 100,000	One	2 to 3 days
Private Limited Company	PKR 100,000	Two	2 to 3 days
Public Listed Company	PKR 200 Million	Seven	2 weeks
Unlisted Company	PKR 100,000	Three	3 to 4 days

1.Single Member Company:

• Single-member company (SMC) shall not invite the public to subscribe to any of its shares in the company;
• A single member company shall have a nominee that should be a person of blood relation to the shareholder of the company.
• The minimum share capital must be PKR 100,000.

2.Private Limited Company:

• Private limited company restricts the right to transfer its shares;
• Private limited company has at least two shareholders.
• Private limited company prohibits any invitation to the public to subscribe for the shares (if any), debentures, or redeemable capital of the company. 
• Private limited company must have a share capital of at least PKR 100,000.

3.Public Listed Company:

• Public listed company allows the right to transfer its shares to general public;
• Public listed company has at least seven shareholders.
• Public listed company does not prohibits any invitation to the public to subscribe for the shares (if any), debentures, or redeemable capital of the company. 
• Must have a share capital of at least PKR 200 Million.

4.Unlisted Company:

An unlisted company is also a type of Public Limited Company but:

• It restricts the right to transfer its shares;
• Has at least three shareholders.. 
• Must have a share capital of at least PKR 100,000.

What are the benefits of company registration in Pakistan?

In the initial stages a business in Pakistan is either a sole ownership or an association. You might have to extend the business as a dependable one, raise capital, and breaking point your responsibility. For this reason, you might require company registration in Pakistan. The company registration in Pakistan gives you various benefits:

Limited Risk – When you register a company in Pakistan, it gets its assets and wealth that are completely separate from you as an individual. It is called limited liability. Limited liability company works as a separate legal entity where any risk of bankruptcy may never affect your personal wealth or any legal matter will only be in the name of the legal entity and will not affect you personally.

Access to Bank Loans– A Company registered in Pakistan has easy access to bank loans, venture capitals etc. Investors and Lenders are more willing to back a company legally registered in Pakistan.

Growth – Being credible and having access to more capital give wings to a business. It finds the resources to enter into new ventures and avenues, promote products or services to other regions, and maximize growth.

Additional benefits of companies incorporation in Pakistan may include gaining tax rebates in several industries such as exporting goods and services specifically related to IT. The government also supports companies that are true and fair in their operations and contributes to the economic growth of the country. Companies registered in Pakistan can participate in various national and international exhibitions the government initiates to help them expand beyond the borders.

What is the Process of Company Registration in Pakistan?

The step by step process of online company registration in Pakistan starts with name availability that can be applied manually by offline mode or through online mode. Following steps are involved in online company registration in Pakistan when formed through online mode.

Step 1: Search Company’s Name Availability:

Search the availability of name of the proposed names of the company for Company Registration in Pakistan on SECP website before applying for name availability. Company Name Search is free and attracts no fees. You can check here.

Step 2: Getting the Company Name Reserved

If the proposed name of the company is available, go to SECP website create the user login and start the name reservation process. Make an application to the registrar of companies for the availability of name.

The first step in online company registration in Pakistan is to make an application to the registrar of companies for the availability of name. The application can be made both online and in offline mode and normally takes a period of one to two days before confirmation of the name applied for new company registration in Pakistan.

You can apply with three proposed names according to priority so the name that you prefer more will be provided if it is available. Before making an application to the Securities and Exchange Commission of Pakistan for company registration please do not forget to do Company Name Search on the Securities and Exchange Commission of Pakistan website. Once the name is confirmed you can proceed with the process of online company registration in Pakistan.

Once the name is confirmed you can proceed with the process of company registration in Pakistan.

The fee for applying for company name reservation is PKR 200.

Step 3: Applying for online Company Incorporation

Once Name is reserved, you can register your company within 60 days of name reservation. Prepare necessary documents and fill given forms.

Memorandum of Association is the basic document where all the objectives of the company registration are stated e.g. the basic objective of company registration is to engage in the business of general order supplier or trading company or any other business. All the business the company is planning to undertake must be stated in the memorandum in order to get the process of company registration in Pakistan to complete. The sample of Memorandum of Association is given at SECP website under Company Registration section.

Articles of Association is the basic document where all the rules of the company to operate are stated e.g. How directors are going to operate, when how General Meetings of the company undergoing the process of company registration in Pakistan is to be conducted etc.

The sample of Articles of Association for all types of companies registered in Pakistan are also given on SECP website.

After providing all the information and relevant documents, your company will get registered in SECP within 2 to 3 working days.

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Why choose WR Cooper?

We understand that SECP regulatory compliances can be complicated. We are here to get your work done at fast pace and assist you to navigate these complex regulations.

 

Conclusion:

Registering a company can provide you with various business opportunities. SECP has deregulated the lengthy processes for business community to register companies. SECP has also enabled Online company registration in Pakistan . This article provides steps as how to register a company in Pakistan, online company registration in Pakistan, Pvt ltd company registration in Pakistan.

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