From choosing the right business structure to obtaining licences and registrations, launching a business in Pakistan involves navigating multiple regulatory requirements. Our step-by-step guide walks you through everything you need.
Starting a business in Pakistan has become significantly easier over the past decade, with digital registration systems and streamlined approvals reducing setup times. Here is a comprehensive guide to the key steps.
Step 1: Choose Your Business Structure
The four main options are: sole proprietorship (simplest, unlimited liability), partnership (Partnership Act 1932), private limited company (Companies Act 2017, recommended for most businesses), and a branch of a foreign company.
Step 2: Company Registration with SECP
A private limited company is registered online through the SECP's e-Services portal. You need a company name reservation, memorandum and articles of association, and details of directors and shareholders. Total government fees are modest — typically under PKR 10,000 for a small company.
Step 3: National Tax Number (NTN)
Register with FBR for an NTN through the Iris portal. This is required for all formal business activity, banking, and contract work with government entities.
Step 4: Provincial Sales Tax Registration
If your business provides services, you must register with the relevant Provincial Revenue Authority (PRA in Punjab, SRB in Sindh, KPRA in KPK, BRA in Balochistan) for sales tax on services.
Step 5: Sector-Specific Licences
Depending on your industry, you may need additional licences — from PEMRA for media, from SECP for financial services, from the Ministry of Health for pharmaceuticals, or from relevant municipal authorities for physical premises.
Step 6: Employment Compliance
If you have employees, register with EOBI (Employees' Old-Age Benefits Institution) and SESSI/PESSI (provincial social security). Maintain proper payroll records and issue employment contracts.
Shafi Law Associates advises startups and established businesses on all aspects of business setup and ongoing regulatory compliance.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please contact our team.