A Private Limited Company in Pakistan requires a minimum of 2 directors and can have a maximum of 50. Directors must be natural persons and at least one must be a Pakistani resident.

The minimum paid-up capital for a standard Private Limited Company is PKR 100,000. However, certain sectors may require higher minimum capital as specified by regulatory authorities.

Company name reservation takes 1 business day. Full incorporation, including filing Form 1 and Form 21 and receiving your Certificate of Incorporation, typically takes 7 to 10 business days after all documents are submitted.

Yes. Overseas Pakistanis can serve as directors and shareholders. You will need a valid CNIC or NICOP, notarised documents if signing from abroad, and our team guides you through the entire remote process.

Yes. Every company incorporated in Pakistan must register with the Federal Board of Revenue and obtain a National Tax Number. NTN registration is included in our Formation Plus and Full Launch packages.

Yes, but foreign directors require a valid passport copy and may need additional SECP approvals. Shareholding by foreigners is permitted in most sectors, though some industries have foreign ownership restrictions. Our Enterprise plan covers complex mixed structures.

You will need CNICs of all directors and shareholders, proposed company name options, registered office address, business object details, and proposed share structure. Our secure portal guides you through every field.

Yes, SECP requires a registered office address in Pakistan. It does not need to be a commercial premises. A residential address is accepted for the registered office at the time of incorporation.

A sole proprietorship has no separate legal identity and exposes you to unlimited personal liability. An SMC is a registered company with SECP, giving you a separate legal entity and limited liability, meaning your personal assets are protected from company debts.

SECP requires a nominee director to be appointed in case the sole member dies. This can be any individual you nominate. Our team assists with this requirement during the filing process.

Yes. Overseas Pakistanis with a valid CNIC or NICOP can register an SMC. Documents can be submitted remotely via our secure portal. Notarisation may be required for certain documents signed abroad.

The minimum authorised capital for an SMC is PKR 100,000. This is the registered capital and does not need to be deposited into a bank account at the time of registration.

Yes. An SMC is a fully incorporated company and can hire employees, register for EOBI and PESSI, and operate exactly like any other private limited company.

Name reservation takes approximately 1 business day. Full incorporation typically takes 7 to 10 business days after all required information is submitted through our secure portal.

Yes. FBR requires every company to register and obtain an NTN. This is included in our Formation Plus and Full Launch packages. You will also need to file annual returns with FBR.

Yes. If your business grows and you bring in more shareholders, you can convert your SMC to a full Private Limited Company through SECP. Our Enterprise team can assist with this conversion.

An LLP, or Limited Liability Partnership, is registered with SECP under the LLP Act 2017 and provides each partner with limited liability protection. A regular partnership has no separate legal identity and all partners are personally liable for firm debts.

A minimum of 2 partners is required to form an LLP. There is no upper limit on the number of partners. At least one designated partner must be a resident of Pakistan.

Every LLP must have at least one designated partner who is a Pakistani resident. Designated partners are responsible for regulatory filings and compliance with SECP requirements, including the annual return and LLP agreement changes.

Yes. Both individuals and companies can be partners in an LLP. This makes LLPs useful for joint ventures where two companies want to collaborate on a project while keeping liability separate.

LLPs must file an annual return with SECP and submit a statement of accounts. The compliance burden is lighter than a private limited company, with no requirement for a statutory audit in many cases for smaller LLPs.

LLPs are taxed as partnership firms. Each partner pays income tax on their share of the profits individually, meaning the LLP itself does not pay corporate tax. This avoids the double taxation issue that can arise in some company structures.

Yes, foreign nationals can be partners, but at least one designated partner must be a Pakistani resident. Additional SECP approval may be required for foreign partners in certain sectors.

LLP name reservation takes approximately 1 to 2 business days. Full registration, including SECP filing and certificate issuance, typically takes 10 to 14 business days after all documents are submitted.

No. Sole proprietorships in Pakistan do not require SECP registration. You register with FBR for an NTN, obtain any necessary trade licences, and you can begin operating legally.

A sole proprietorship has no separate legal entity and carries unlimited personal liability. An SMC is a registered company with SECP, offering limited liability protection and a separate legal identity. The SMC also provides greater credibility with banks and corporate clients.

Yes. You can open a current account in your trade name as a sole proprietor. You will need your NTN certificate, CNIC, business address proof, and a business name affidavit. Our bank account docs pack includes everything required.

Yes. As a sole proprietor, your business income is taxed as your personal income. You must file an annual income tax return with FBR using your NTN. GST registration is required if your annual turnover exceeds the FBR threshold.

Yes. A sole proprietor can hire employees. You will need to deduct and deposit withholding tax on salaries and may need to register for EOBI contributions once your workforce reaches the required threshold.

FBR NTN registration for a sole proprietor typically takes 3 to 5 business days through our service. The NTN certificate is delivered to you digitally once issued.

Trade licence requirements vary by city and sector. Most local businesses require a trade licence from the relevant Municipal Corporation. Certain sectors such as food, pharmaceuticals, or import and export require additional regulatory licences.

Yes. You can incorporate an SMC or Pvt Ltd at any time and transfer your business activities to the new entity. This is a common growth path and our team can handle the full conversion process.

A Section 42 company is a non-profit company incorporated under Section 42 of the Companies Act 2017, regulated by SECP. It can use the words foundation, association, institute, council, or similar in its name and cannot distribute profits to its members.

Yes. SECP issues a licence before incorporation for Section 42 companies. The licence is granted after SECP reviews your proposed MOA and is satisfied the company will operate for charitable, educational, religious, or other non-profit purposes.

The process is longer than a standard company registration. SECP review of the licence application alone can take 3 to 4 weeks. Full registration including all filings typically takes 30 to 45 days from submission of complete documents.

Yes. Section 42 companies can apply for income tax exemption under the Income Tax Ordinance 2001. FBR grants exemption to NGOs that meet specific criteria around their purposes and governance. Our Full Launch package includes this application.

Yes. Employees and executive directors can be paid reasonable market salaries. What is prohibited is distributing profits or assets to members in the way a commercial company pays dividends.

SECP registration gives you a federal legal entity. Provincial social welfare departments have separate registration requirements for NGOs operating in specific provinces. Many international donors require both. We guide you through both processes.

Foreign NGOs operating in Pakistan must register with the Ministry of Interior, Economic Affairs Division, and relevant provincial authorities. This is separate from SECP registration and involves additional security clearances. Our Enterprise plan covers this.

Yes. Section 42 companies are required to prepare audited financial statements each year and file them with SECP. The audit must be conducted by a chartered accountant firm registered with ICAP.