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Registering a company in Pakistan in 2020

Key benefits of doing business in this jurisdiction:

  • A strategic location;
  • There are four special economic zones: Karachi, Risalpur, Sialkot and Gujranvala;
  • A continuous GDP growth; Investment in infrastructure;
  • No residency requirements for directors and shareholders;
  • No fixed minimum amount for share capital;
  • Double taxation avoidance agreement with 47 countries.

A cost of registering a business isfrom €6900

A company registration period is from 14 days

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The Pakistan government has entered into a double tax treaty with 47 countries. In this regard, registering a company in Pakistan is a good idea for those, who wish to expand their business in foreign jurisdictions.

We want to note, that there are four special economic zones in the country: Karachi, Risalpur, Sialkot and Gujranvala.

Norms and requirements for registering a Pakistan enterprise

In each jurisdiction there are certain rules and requirements, that must be adhered, if you want to start international business. To register an entrepreneurial activity in Pakistan, the following steps should be taken:

  • You should register at least one shareholder and at least two directors (non-residents can be). The number of directors/shareholders for the branch is 1 (without residency requirements);
  • You should create a firm capital. The legislation of the country does not provide for a specific amount of the minimum capital of the company. But, based on experience, we can say, that to register a company in Pakistan it is necessary that the minimum capital is approximately 100,000 PKR (~ $ 823);
  • It is mandatory to keep accounting records, annually submit financial statements and conduct audits;
  • Be sure to register an office and appoint a secretary;

It's important: Board of Investment (BOI) approval is required to register a Pakistan branch. The permit is valid from 1 year to 5 years.

Documents required to register a company in Pakistan
  • a notarized copy of the passport;
  • a confirmation of the address of residence;

By applying for services to IQD Consulting specialists, you can get legal advice on issues of documentation and permission to do business in Pakistan.

We also draw your attention to the fact, that the registration period is from 14 days.

Read also:
A taxation in Pakistan

When you decide to open a business in Pakistan, pay attention to the following tax rates:

  • a corporate tax is 37%;
  • VAT is 17%;
  • dividends is 15%.
To register a Pakistan Free Zone Company (EPZ)

Foreign investors planning to do business in Pakistan, but at the same time export it to foreign markets, can register a company in Pakistan FZ. Typically, the requirements for such companies include a higher amount of a minimum capital and the availability of production permits and business licenses.

To obtain business licenses in Pakistan

We draw your attention to the fact, that if you want to open business in Pakistan legally, then you need to obtain a Pakistan business license. Our lawyers can help you with this question. You can seek personal advice on registering a business permit in Pakistan at the contacts listed on the site.

A help of lawyers

Foreign investors, who are interested in entering their business in new economic markets and have chosen Pakistan for this purpose are advised to contact IQD Consulting for professional assistance. Our lawyers will provide you with registration services in Pakistan and help you to open corporate accounts in Pakistani banks. We can also help you to buy a ready-made company in Asia and other jurisdiction of your choice.

The information outlined in the article is actual at the time of its publication. Please refer to our specialists for checking possible solutions for your business.

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