Types of Business Structures in Pakistan
Before registering, you need to choose the right business structure. Each type has different legal, tax, and compliance implications:
| Structure | Registered With | Liability | Best For |
|---|---|---|---|
| Sole Proprietorship | No separate registration; NTN with FBR | Unlimited personal liability | Small individual businesses |
| Partnership Firm | Registrar of Firms | Unlimited personal liability | 2-20 partners in a joint business |
| Private Limited Company (Pvt Ltd) | SECP | Limited to share capital | Growing businesses, investor-ready ventures |
| Single Member Company (SMC) | SECP | Limited to share capital | Single owner wanting corporate protection |
| Public Limited Company | SECP | Limited to share capital | Large enterprises, public fundraising |
Private Limited Company Registration — Step by Step
- Step 1 — Name Reservation: Search and reserve your company name on SECP STARR portal (starr.secp.gov.pk). Name must be unique and not offensive or misleading
- Step 2 — Prepare Documents: Draft Memorandum and Articles of Association, collect CNIC copies of all directors/shareholders
- Step 3 — Submit Application on STARR: Complete the incorporation form online with company details, registered office address, share structure
- Step 4 — Pay SECP Fees: Pay the government fee based on authorized capital (set by SECP's fee schedule according to authorised capital)
- Step 5 — Receive Certificate: SECP issues Certificate of Incorporation within 3-7 working days
- Step 6 — Post-Registration: Open company bank account, register NTN with FBR, apply for sales tax registration if applicable, obtain any sector-specific licenses
Documents Required for Company Registration
- CNIC copies of all directors and shareholders
- Proof of registered office address (utility bill or tenancy agreement)
- Memorandum of Association (MoA) — company's objectives and powers
- Articles of Association (AoA) — internal governance rules
- Form 1 — Declaration of compliance by incorporator
- Form 21 — Notice of registered office address
- Form 29 — Particulars of directors/officers
What Happens After Incorporation
The Certificate of Incorporation is the start, not the end. A new private limited company has ongoing SECP and FBR obligations:
| Obligation | Authority | Timing |
|---|---|---|
| Company NTN and IRIS profile | FBR | Immediately after incorporation |
| Bank account in the company's name | Bank | Before trading starts |
| Annual return (Form A) | SECP | After the annual general meeting each year |
| Changes in directors, address or shareholding | SECP | Within the period set for each form |
| Beneficial ownership record | SECP | Kept up to date and filed as required |
| Audited financial statements | SECP and FBR | Annually, as required by the Companies Act |
| Income tax return | FBR | By 31 December for a June year end |
Tax Position of a New Company
Companies pay corporate income tax on profit, generally at 29%, with different treatment for some sectors and for small companies that meet the legal definition. Minimum tax on turnover can apply even in loss years. Dividends paid to shareholders are taxed again in their hands through withholding, which is why some owners prefer to start as a sole proprietor and incorporate later.
Choosing Between SMC and Private Limited
A Single Member Company suits one owner who wants limited liability. If a second shareholder joins later, the SMC can convert to a private limited company. Starting as a private limited company with a family member as a nominal shareholder is common but creates real legal ownership, so it should be a deliberate choice.
Fees
Private limited company registration starts at Rs 15,000 and corporate returns at Rs 18,000 on our pricing page. SECP's own fee is extra and depends on authorised capital.
Official sources: Federal Board of Revenue (fbr.gov.pk), FBR IRIS portal, SECP (secp.gov.pk). Rates and dates on this page follow the Income Tax Ordinance 2001 as amended by the Finance Act 2026.
Frequently Asked Questions
What is the corporate tax rate in Pakistan?
Companies are generally taxed at 29% on profit, with special treatment for certain sectors and qualifying small companies.
What must a company file with SECP each year?
An annual return after the AGM, audited accounts as required, and forms for any changes in directors, address or shareholding.
How long does company registration take in Pakistan?
SECP online registration via STARR portal takes 3–7 working days once all documents are submitted correctly. Name reservation is approved within 24–48 hours.
Can I register a company online in Pakistan?
Yes. SECP's STARR portal (starr.secp.gov.pk) allows complete online registration of private limited companies. You can submit all documents digitally and pay fees online without visiting any SECP office.
What taxes does a private limited company pay in Pakistan?
A Pvt Ltd company pays corporate income tax at 29% on net profits, files annual income tax return, monthly/quarterly withholding tax statements, and sales tax returns if registered. It must also file annual returns with SECP.
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