How to Register a Company in Pakistan?
How to Register a Company in Pakistan?
In keeping with the government’s recent digitization initiatives, the Securities and Exchange Commission of Pakistan (SECP) has recently been tasked with regulating and modernizing the corporate sector. With a fully-featured online portal, this state-owned regulatory agency aims to facilitate the business community in the country.
As a result, anybody planning to set up a business in Pakistan can now apply for the registration process online instead of having to physically submit an application. The following post will detail both online and offline processes to register a business in Pakistan according to Securities and Exchange Commission of Pakistan (SECP) guidelines.
Registering a Company Online: Steps to Follow
Following these steps will help you register a company in Pakistan. Each step of the process outlined below has its own requirements.
Generally, a company in Pakistan can be registered online within 1-3 days. Also available for fee payments are debit/credit cards, 1link banks, Easypaisa mobile wallets, ATMs, and mobile/internet banking.
User Registration on Online Portal
For online registration, you will need to create a user account on the Securities and Exchange Commission of Pakistan (SECP) portal e-services.
In case of a new user registration, clicking the “Sign up for Nationals and Foreigners/POC Holders” button will take you to the user registration screen.
Submit the form once the form has been filled out with all the required information about the user.
Upon submitting the form, you will receive an email and SMS containing your 4-digit pin number for verification of the user registration process. Afterwards, you can log in with your username and password.
Using the portal requires your username, which by default is your CNIC/passport number, and the password you entered when registering.
Primary Information about the Business
Once you have successfully logged in to the portal using your user registration credentials, you need to select the “Name Reservation and Company Incorporation” option from the list of options.
Now, you should propose three alternative company names of your choice. These names should reflect the characteristics of your business.
In the drop-down menu, choose the appropriate option to describe the nature of your business and its operations.
Fundamentals about the Company
Provide information regarding your company’s fundamentals. It contains details about the company’s shareholders and their profiles, shares quantity and their value, shares ownership and its holding percentage, company’s management, authorized capital, registered or correspondence addresses of the company and its directors/officers, contact numbers, and e-mail addresses of the company and its director.
Note: As defined by its memorandum of incorporation, a company cannot raise more or less capital. Authorized capital is the amount that a company can raise. Although there are no limits to the minimum authorized capitalization, PKR 100,000 is often considered adequate.
Registering a Company Physically: Steps to Follow
Following are the steps for submitting an application physically.
First, download the application by clicking on the given link and fill out the required fields. Deposit the required fee in the specified bank branch you choose from the designated bank branches.
For the application submission, you must visit your nearest Securities and Exchange Commission of Pakistan (SECP) Company Registration Office (CRO), which can be found in different cities. This article provides information about the Company Registration Offices (CROs) established by Securities and Exchange Commission of Pakistan (SECP) throughout the country.
Name Availability Letter
A name availability letter will be issued if your application meets the required conditions. After the letter is issued, the company’s name is reserved for sixty days (two months), which gives plenty of time to complete the incorporation process ahead.
Document Submission for Incorporation
All business registration requires submission of incorporation documents to Security & Exchange Commission of Pakistan (SECP).
As soon as your company name has been approved, the second step you need to take to register a company is to submit incorporation documents to the Securities and Exchange Commission of Pakistan (SECP).
Issuance of Incorporation Certificate
Upon submission of the required documentation, the Securities and Exchange Commission of Pakistan (SECP) evaluates and verifies the validity of each document submitted. When everything has been achieved according to the guidelines, you will receive an “Incorporation Certificate” for your company.