A Step-by-Step Guide: How Overseas Pakistanis Can Register a Company in Pakistan

 For the millions of Pakistanis living abroad, investing in their homeland represents both an emotional connection and a strategic financial opportunity. Registering a company in Pakistan from overseas is not only possible but has been significantly streamlined in recent years through digital reforms. This guide outlines the complete legal process, requirements, and practical considerations for overseas Pakistanis looking to establish a formal business entity in Pakistan.

Why Register a Company in Pakistan?

Before delving into the process, understanding the benefits is crucial:

  • Legal Protection: A registered company is a separate legal entity, protecting personal assets from business liabilities.

  • Business Credibility: Formal registration enhances trust with customers, suppliers, and financial institutions.

  • Access to Banking: Essential for business accounts, loans, and digital payment systems.

  • Tax Advantages: Eligibility for various tax credits, exemptions, and repatriation of profits (for foreign currency investments).

  • NRP/NICOP Benefits: Special incentives for Non-Resident Pakistanis (NRPs) and holders of National Identity Card for Overseas Pakistanis (NICOP).

Step-by-Step Legal Process

Step 1: Choose Your Business Structure

Select the appropriate entity type based on your business goals:

 
 
StructureBest ForKey Features
Sole ProprietorshipSmall, low-risk venturesSimple, minimal compliance, unlimited liability
Private Limited Company (Pvt. Ltd.)Most NRPs (recommended)Limited liability, separate legal entity, 1-50 shareholders
Single Member Company (SMC)Solo entrepreneursLimited liability with single owner
Limited Liability Partnership (LLP)Professional servicesHybrid structure with flexibility
Public Limited CompanyLarge-scale operationsCan offer shares to public, stricter regulations

Most overseas Pakistanis opt for a Private Limited Company due to liability protection and credibility.

Step 2: Reserve Your Company Name

  • Platform: Securities and Exchange Commission of Pakistan's (SECP) eServices portal (eservices.secp.gov.pk)

  • Process:

    1. Create an account on SECP eServices

    2. Submit 3 preferred names in order of preference

    3. Follow naming guidelines: Must be unique, not offensive, and include "Private Limited" at the end

  • Timeline: 24-48 hours for approval

  • Validity: Name reserved for 90 days

Step 3: Prepare Required Documents

For All Applicants:

  1. Digital Copies: Scanned, clear copies of all documents

  2. NICOP/Passport: Mandatory identification (NICOP preferred)

  3. Proof of Overseas Address: Utility bill, bank statement, or residence permit

  4. Local Address in Pakistan: For registered office (can be residential or commercial)

Additional Documents:

  • Articles of Association: Company's internal rules (standard templates available)

  • Memorandum of Association: Company's constitution and objectives

  • Director Information: At least one director required (can be the shareholder)

  • Registered Office Address: Proof of address (rental agreement or ownership documents)

Step 4: Company Incorporation via SECP eServices

Complete Online Submission:

  1. Fill Form 1: Application for incorporation

  2. Upload Documents: All required scanned documents

  3. Pay Fees: Online payment through credit/debit card or bank transfer

  4. Digital Signatures: Use SECP's digital signing feature

Key Details Required:

  • Authorized share capital (minimum: PKR 100,000 for private limited)

  • Business activities (NTN codes/SIC codes)

  • Director(s) and shareholder(s) details

  • Registered office address in Pakistan

Step 5: Post-Incorporation Registrations

Once SECP issues the Certificate of Incorporation, complete these mandatory registrations:

A. National Tax Number (NTN) Registration

  • Platform: Federal Board of Revenue (FBR) portal

  • Process: Automatic registration through SECP's one-window system in many cases

  • Alternative: Register separately at iris.fbr.gov.pk

B. Sales Tax Registration (If applicable)

  • Required if annual turnover exceeds PKR 10 million

  • Register at provincial revenue authority:

    • Punjab: Punjab Revenue Authority (PRA)

    • Sindh: Sindh Revenue Board (SRB)

    • KP: KP Revenue Authority (KPRA)

C. Employees' Social Security (If hiring staff)

  • Register with provincial social security institution

  • Required for businesses with 5+ employees

Step 6: Open a Corporate Bank Account

Requirements:

  1. Original Certificate of Incorporation

  2. Board resolution authorizing account opening

  3. Company documents (Memorandum & Articles)

  4. Director(s) identification (NICOP/passport)

  5. Proof of overseas and local addresses

Tip: Many Pakistani banks have dedicated "NBP Remittance" or "Overseas Pakistani" desks to facilitate this process. Consider banks with robust online banking for remote management.

Special Considerations for Overseas Pakistanis

Using a Legal Representative

You can appoint a legal representative in Pakistan through:

  1. Power of Attorney (PoA): Notarized and attested

    • Notarized in host country

    • Attested by Pakistani Embassy/Consulate

    • May require translation if not in Urdu/English

  2. Corporate Service Providers: Many firms specialize in NRP company registration

Investment Through Foreign Currency

  • Repatriation of Profits: Fully allowed for foreign currency investments

  • State Bank Requirements: Must declare source of funds

  • Advantage: Investment in foreign currency strengthens your financial position

Tax Benefits for NRPs

  • Tax Credits: Available under various government schemes

  • Double Taxation Agreements: Check if Pakistan has a treaty with your country of residence

  • Initial Tax Holiday: Available for specific sectors and Special Economic Zones (SEZs)

Common Challenges & Solutions

 
 
ChallengeSolution
Physical presence requiredUse PoA or corporate services
Document attestation delaysStart early, use embassy's online appointment systems
Understanding local regulationsHire a local chartered accountant or legal advisor
Bank account opening remotelyChoose banks with NRP-friendly policies, complete forms online first

Digital Tools & Resources

  1. SECP eServices Portal: Primary platform for registration

  2. FBR Iris Portal: Tax registrations and filings

  3. PRA/SRB Portals: Provincial tax registrations

  4. Pakistani Embassy Websites: For document attestation procedures

  5. Online Legal Services: Platforms like Sohaib and Sultan - Law firm for legal business services

Estimated Costs & Timeline

Cost Breakdown:

  • SECP Registration Fee: PKR 2,000 - 20,000 (based on authorized capital)

  • Professional Fees (if using services): PKR 15,000 - 50,000

  • Notarization/Attestation: Varies by country

  • Bank Account Opening: Typically minimal

Timeline:

  • Name Reservation: 1-2 days

  • Company Incorporation: 3-7 days

  • Tax Registrations: Additional 5-10 days

  • Bank Account Opening: 7-14 days

Total: Approximately 2-4 weeks for complete setup

Post-Registration Compliance

Maintain your company in good standing through:

  1. Annual Returns: File with SECP annually

  2. Tax Returns: Submit by due dates (varies by company type)

  3. Audit Requirements: Required for companies above certain thresholds

  4. Shareholder Meetings: Annual general meeting mandatory

Conclusion

Registering a company in Pakistan as an overseas Pakistani is now more accessible than ever, thanks to digital transformation and government initiatives aimed at facilitating NRP investment. While the process can be completed remotely, engaging a reliable local advisor or corporate services provider can streamline the journey significantly.

The key to success lies in:

  1. Proper planning of business structure and activities

  2. Meticulous documentation with proper attestations

  3. Understanding both ongoing compliance requirements and available incentives

  4. Leveraging digital platforms to manage your business remotely

By following this structured approach, overseas Pakistanis can confidently establish and grow their businesses in Pakistan, contributing to both personal wealth creation and national economic development while maintaining their connection to their homeland.

Visit: https://sohaibnsultan.pk

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