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 | TDCP / District Council | 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 (starts from Rs. 1,500)
- 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
SECP Registration Fees Pakistan 2026
| Authorized Capital | SECP Fee |
|---|---|
| Up to Rs. 1,00,000 | Rs. 1,500 |
| Rs. 1,00,001 — Rs. 5,00,000 | Rs. 3,000 |
| Rs. 5,00,001 — Rs. 10,00,000 | Rs. 6,000 |
| Rs. 10,00,001 — Rs. 50,00,000 | Rs. 9,000 |
| Rs. 50,00,001 — Rs. 1 Crore | Rs. 12,000 |
Total Cost Estimate: Including SECP fees, document preparation, FBR NTN registration, and professional consultant fee, expect Rs. 25,000–60,000 for a complete private limited company setup in Pakistan through a consultant.
Frequently Asked Questions
Register Your Company Hassle-Free
We handle complete company registration — SECP incorporation, FBR NTN, sales tax registration, and all post-registration compliance in one package.
WhatsApp Now — 0328-4675162Business Tax Compliance in Pakistan — 2026 Complete Guide
Running a business in Pakistan requires compliance with multiple tax regimes simultaneously: Income Tax (FBR), Sales Tax (STRN), Withholding Tax obligations as an employer and buyer, and provincial service tax (SRB, PRA, KPRA, BRA). Missing any one of these can trigger penalties and notices.
Business Tax Calendar 2026-27
| Filing | Due Date | Penalty for Late |
|---|---|---|
| sales tax return filing Return | 18th of next month | Rs.10,000/month |
| Monthly WHT Statement | 15th of next month | 0.1% of tax per day |
| Quarterly Advance Tax | 25th of Sept/Dec/Mar/Jun | 12% annual markup |
| Annual income tax return filing | September 30 | Rs.10,000 or 0.1% of tax |
| Audit documentation | On demand | Rs.1,000,000 or more if non-compliant |
NTN Registration for Business
Every business entity — sole proprietor, partnership, private limited company, or NGO — must have a unique NTN. For companies, the NTN is linked to the CNIC of the principal officer. Registration is free via IRIS or in person at your Regional Tax Office (RTO).
STRN (Sales Tax Registration Number)
You must register for STRN if your annual taxable supplies exceed Rs.10 million. Once registered, you must:
- Charge 17% standard sales tax on goods (or applicable reduced rate)
- Issue FBR-compliant invoices with your STRN
- File monthly returns and pay net tax (output minus input)
- Maintain records for 5 years minimum
Minimum Tax — Section 113
If a company's normal tax liability is less than 1.25% of gross turnover, it must pay minimum tax. This applies even if the company shows a loss. For certain sectors (distributors, dealers), minimum tax rates differ.
Super Tax — Large Companies
Companies with income exceeding Rs.150 million pay Super Tax at 1-10% depending on income bracket and sector. Banking companies face a 10% super tax rate. This is on top of the normal 29% corporate tax rate.
For complete business tax setup, bookkeeping, and FBR compliance, contact Kamboh Associates at 0328-4675162.
Frequently Asked Questions — Business Tax Pakistan 2026
What is the corporate tax rate in Pakistan 2026?
The standard corporate tax return rate in Pakistan for 2026-27 is 29% for private companies. Banks pay a higher rate of 39% (corporate tax 29% plus super tax 10%). Listed companies benefit from a 2% tax credit if they increase their tax paid from the previous year by 20%. Small companies (defined under the Companies Act) pay a reduced rate of 20% if meeting eligibility criteria.
When must a business register for sales tax (STRN) in Pakistan?
A business must register for sales tax registration (STRN) Number (STRN) if its annual taxable supplies of goods or services exceed Rs.10 million. Additionally, FBR can compulsorily register any person or business they believe should be registered. Service providers in Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan must register with their respective provincial revenue authorities (PRA, SRB, KPRA, BRA) for service tax, with registration thresholds varying by province.
What is advance tax and how is it calculated for businesses?
Advance tax is paid quarterly by companies and businesses with annual tax liability above Rs.100,000. Each quarterly installment is 25% of the last assessed tax liability or estimated current year tax, whichever is higher. Installments are due on September 25, December 25, March 25, and June 15. Under-payment of advance tax results in 12% annual markup on the shortfall.
What is the difference between a sole proprietorship and an AOP for tax purposes?
A sole proprietorship has no separate legal entity — all income is declared in the owner's personal income tax return. An Association of Persons (AOP) is a partnership or joint venture that files its own tax return at AOP tax rates (similar to individual slab rates). The key difference is that AOP income is taxed at the AOP level first, and then individual partners' shares are also included in their personal returns — creating a potential double taxation issue that requires careful planning.
What records must a business maintain under Pakistan tax law?
Under Section 174 of the Income Tax Ordinance, businesses must maintain proper accounts and records for at least 5 years from the end of the tax year. Required records include: sales and purchase invoices, cash receipts and payment vouchers, bank statements, payroll records and salary slips, stock registers, fixed asset schedules, and loan/liability documentation. For sales tax registered businesses, FBR requires additional records including output/input tax registers and STRN-compliant invoices.
Full-Service Business Tax Compliance
Kamboh Associates handles bookkeeping, sales tax, payroll tax, advance tax, and annual returns for businesses of all sizes. Monthly retainers from Rs.5,000.
Call / WhatsApp: 0328-4675162 | Office: 62-B, Johar Town, Lahore