The Securities and Exchange Commission of Pakistan (SECP), established to oversee and modernize the corporate sector, has been given significant consideration in light of recent digitalization measures launched by the Pakistani government. This state-owned regulatory body is now digitally powered by a robust internet platform to assist the nation’s business community.
So, instead of dealing with the difficulty of filing a physical application, potential business owners who wish to register a company in Pakistan may now do so with ease. According to SECP standards, we will describe online and offline business registration procedures in Pakistan in this blog.
How To Register A Business In Pakistan In Four Easy Steps
To register a corporation in Pakistan, you must complete four essential stages. Moreover, in Pakistan, the registration of a corporation may take up to 1.5 months to complete. It depends on a few crucial processes, each of which has particular prerequisites outlined below. Read more about Requirements and Procedure For Company Registration in Pakistan
1. Reservation For Business Name
It is the first and most crucial stage in incorporating a business. Either use an online application process or physically submit your application. On the SECP website, you may find information regarding the online application and application process.
2. Account Creation On The SECP Online Portal
Therefore, you must register on the SECP’s e-portal to register your business online in Pakistan. As a new user, you must select the “Sign up for National or Foreign/POC holder” option. You must now complete the form with the necessary data. After completing the form, you will receive a 4-digit pin number by email and SMS.
It is crucial to note that the CNIC/passport number and password you gave while registering on the portal will act as your login information.
3. Choose The Name Reservation And Company Incorporation Option
You will need to select “Name Reservation and Company Incorporation” from the list of options after successfully logging into the site. Now, suggest three names for your business. The name should be appropriate for the type of business you are running.
Please choose the appropriate choice from the drop-down box to describe the nature of your company and how it operates. Choose a payment option from the list using a debit or credit card, a bank that offers the 1link service, the Easypaisa mobile wallet, an ATM, or mobile or internet banking.
2. Include Business Information And Phone Numbers For Your Company
Please enter your company’s information, the locations of its registered offices and establishments, a phone number, an email address, and a description of your company’s industry in this section.
Learn more about Company Registration In Pakistan.
What Do You Need To Have In Capital To Register A Business In Pakistan
The law permits A firm to raise the amount of capital specified in the memorandum of establishment. the amount which a firm raises is the approved capital. A company must have PKR 100,000 in authorized capital to be incorporated and registered in Pakistan.
The total incorporation price is PKR 1,800 for online applications and PKR 3,500 for physical submissions. Officials assess the bare minimum incorporation fee of PKR 100,000 of firm capital. However, the amount, location, size, and nature of the business may all affect the cost.
Physical Application Process For Company Incorporation
The following is the step-by-step process for physically applying SECP.
First, download by clicking the provided link, then complete the necessary application form.
You must go to your nearby company registration office, which has several locations throughout nine cities, to apply to a registrar.
The registrar will then provide a letter indicating the availability of your requested name if your application meets the necessary criteria. Officials will hold the name for sixty days starting on the date of the letter’s issuance (two months). There is sufficient time to finish the company incorporation process in Pakistan.
Pro Tip: Opting to submit an online application rather than a paper one could be a wise choice since it may only cost you about half as much money. You will pay PKR 200, for instance, if you apply online.
If you choose the manual method, however, you might be required to pay PKR 500 in fees for a bank challan made in the name of the Securities and Exchange Commission of Pakistan (SECP). Furthermore, as already mentioned, if you register your firm through a physical application, the incorporation charge is doubled.
It appears that the authorities in Pakistan are committed to advancing the idea of e-governance by rejecting traditional methods.
Submission Of Incorporation Documents
You must submit the incorporation documents to SECP to register a business in Pakistan. The filing of incorporation documents to the Security & Exchange Commission of Pakistan (SECP) is the second crucial step you must take to incorporate a company in Pakistan after having your company name authorized. We have stated these documents below.
- Articles of Association
- Association Bylaws
- CNICs for the Directors in scanned form
- Scanned Bank Deposit Receipt (In case of Offline Payment)
- the subscribers’ consent to the submission of documents
- Fee for registering/filing
- Memorandum of Association: A legal document describing your industry or company
- Article of Association: A document outlining the duties of the board of directors of a corporation.
Note: The aforementioned material may be submitted in PDF format using SECP’s e-portal. Online payments for Pakistani company registration fees are also an option.
A digital signature and certificate of incorporation are issued. Following the completion of document submission and payment of the company registration fee in Pakistan, SECP assesses and confirms each document’s legitimacy. The National Institutional Facilitation Technologies (NIFT) then issues your company a digital signature, which you can obtain via SECP’s e-portal.
You’ll also need to obtain the certificate of incorporation from NIFT and the digital signature. It requires you to provide a thorough presentation on the type of business and operations your organization conducts. However, depending on the circumstances, this step’s needs may change.
You must have at least PKR 100,000 in approved capital to register a firm, and the SECP will charge you PKR 1,800 for an online application and PKR 3,500 for an offline application. As previously said, the incorporation charge largely relies on the startup money, firm location, size, and industry.