Obtain PIN for company registration
Agency: Securities and Exchange Commission of Pakistan (SECP)
As of April 2017, SEC has allowed for the registration for company incorporation to be submitted through inputting the PIN number instead of the digital certificate. As such, companies now just need to input the following information into the system his/her 13 digit CNIC Number /NICOP /POC without dashes. The user will also enter his/her personal details i.e. Full Name, Father’s/Spouse Name, Gender, Date of Birth, Current Address, Permanent Address, Mobile Number, Email Address. The user will then enter his/her proposed password. In next section, the user is required to select three security Questions and then provide answer to those questions. The user will then click the Signup button to proceed further. After verification, the system will send security code to User on his/her provided Mobile Number and also on his/her email address. Upon submission, the system will send PIN to User on the provided Mobile No. through SMS and also on the provided Email Address. This system generated PIN will be required for company incorporation.
Time and cost: Less than 1 day (online procedure), PKR 100
Reserve the name, register company, pay incorporation fees, obtain a national tax number (NTN) and register with Excise & Taxation Department of the District (Professional Tax), the Sindh Employees Social Security Institution (SESSI), Employees Old-Age Benefits Institution (EOBI) and Labor Department of Karachi on the Securities & Exchange Commission of Pakistan (SECP) e-portal
Agency: Securities and Exchange Commission of Pakistan (SECP)
Registration can either be completed online or in person at SECP.
On February 6, 2018, SECP launched a single online procedure for user registration, name reservation, company incorporation, and notification of appointment of CEO. The new e-Services are available at https://eservices.secp.gov.pk/eServices/.
It is required to reserve a company name for the new registration. This can be done in two ways: separately by submitting name reservation form, or together with submitting the incorporation application. Most commonly, prior to reservation of name companies check the name availability at https://www.secp.gov.pk/company-name-search/ (website also includes list of prohibited names). Once the desired names were verified as available, founders go to https://eservices.secp.gov.pk/eServices/ , login, and select combined application for name reservation and company incorporation. During the incorporation application, companies notify of the first CEOs, among other details.
Starting from 2019, entrepreneurs can also choose to register with Excise & Taxation Department of the District for the Professional Tax, the Sindh Employees Social Security Institution (SESSI), Employees Old-Age Benefits Institution (EOBI) and Labor Department within incorporation application. Upon checking relevant options, the system generates pre-filled applications that need to be reviewed by applicants and submitted through the same system in a step-by-step process.
Once name reservation and incorporation application are prepared, the system prompts user to the payment options. The name reservation fee, registration fee, filing fee and Labor Department registration fee are all generated under one payment. Payment can be done online or at the bank. It is most common that companies use e-payment.
The fees for incorporation of a company were updated on May 24, 2016 according to the S.R.O 448. The registration fees depend on the authorized capital.
A confirmation of the online or physical submission is received instantly, and the actual certificate is emailed within a few hours. However, in practice, entrepreneurs also require to receive a physical copy of incorporation certificate, which can be collected in person on the next day. National tax number (NTN) is sent by e-mail with couple of hours. Confirmations of registration with Excise & Taxation Department of the District for the Professional Tax, the Sindh Employees Social Security Institution (SESSI), Employees Old-Age Benefits Institution (EOBI) and Labor Department are received over e-mail within 1 week.
Time: 1 week
Cost:
- Name reservation fee (PKR 200); plus
- Filing fee (PKR 400); plus
- Registration fee (for online submission: PKR 1,000 for capital below PKR 100,000; additional PKR 500 for every PKR 100,000 of capital or part thereof, above PKR 100,000 and up to PKR 10,000,000); plus
- Fee for registration with the Labor Department (PKR 1,000).
Make a company seal
Agency: Seal maker
According to Article 23 of the Companies Act, 2017, every company shall have a common seal. A company‘s common seal must be a seal having the company‘s name engraved on it in legible form. If company issues share certificates in physical form, such certificates must also bear the company seal.
Company seal is required in practice to open a bank account, and is also requested by counterparts and public agencies.
Time and cost: 1 day, PKR 400 – 600
Open a bank account for tax registration
Agency: Bank
A bank account number in the name of the company is needed in order to register for Sales Tax. Typically, banks require a hard copy of the registration certificate in order to open an account.
Time and cost: 1 day, no charge
Apply for a Sales Tax Registration Number (STRN) at the tax facilitation center of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) in Karachi
Agency: Tax facilitation center of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) in Karachi
According to the Sections 14, 15 and 16 of the Sales Tax Act 1990 and Sales Tax Rules 2006, the company must register for sales tax by submitting the application Form STR-1 at any tax facilitation counter at the nearest Regional Tax Office (RTO). The local RTO forwards all applications to the Central Registration Office. After verification, the CRO issues a Registration Certificate bearing the registration number and mails the same to the registered company, on a prescribed From STR-5.
To register, directors must visit the RTO in person and provide biometric data. Prior to issuing the STRN, tax office conducts an inspection.
The Sales Tax General Order No. 4/2007 introduced electronic filing of the sales tax returns; and as of July 1, 2008, electronic filing was made mandatory for all categories of taxpayers.
Time and cost: 1 week, no charge
