Company Registration in Pakistan - Arshad & Associates

Company Registration in Pakistan: A Complete Step-by-Step Guide

Company registration in Pakistan is governed by the Securities and Exchange Commission of Pakistan (SECP) under the Companies Act, 2017. Registering a company formalizes your business, protects your brand, and provides legal structure. This guide provides a comprehensive roadmap for registering your company, from planning to post-incorporation compliance.

1️⃣ Choose the Company Type

First, determine the type of company you want to register. The SECP allows different types of companies:
Private Limited Company (Pvt Ltd) – Most common for startups and SMEs. Requires at least 2 directors.
Single Member Company (SMC) – Suitable for solo entrepreneurs (only 1 director/shareholder).
Public Limited Company – For large businesses; requires at least 3 directors; can raise capital from the public.
Foreign Company – A branch of a foreign entity operating in Pakistan.
Non-Profit Association (Section 42 Company) – For charitable, educational, or social welfare organizations.

2️⃣ Decide the Company Name

The company name must be unique and not misleading. Avoid prohibited or sensitive words (like Federal, National, Bank, etc.) without approval. Check name availability on the SECP portal: SECP Name Search. Tip: Choose a name that reflects your business and is easy to brand.

3️⃣ Create an SECP Account (eServices)

Register at SECP’s eServices portal: SECP eService’s. Provide your CNIC/passport, email, and contact details. After registration, you’ll receive login credentials.

4️⃣ Reserve Company Name

Reserving your company’s name is the first official step in the company registration process in Pakistan. The Securities and Exchange Commission of Pakistan (SECP) oversees this process under the Companies Act, 2017. Choosing the right name is crucial, as it represents your brand and must comply with SECP’s legal requirements.

⚠ SECP Name Reservation Rules & Guidelines

The name must not be identical or closely resemble the name of an existing company or trademark.
Prohibited words: Names containing words like Federal, Republic, Authority, Association, Bureau, Commission, or anything implying patronage of any government body are generally not allowed unless authorized.
Avoid names suggesting illegal activities, obscene or offensive language.
The name should reflect the main business activity where possible (especially for regulated industries).
Certain words require NOC (No Objection Certificate) — e.g. Bank, Insurance, Investment, Security.

👉 Tip: You can check availability of your proposed name using SECP’s Company Name Search on their website before submitting to avoid delays.

⏳ Validity of Reserved Name

Once approved, your reserved company name remains valid for 60 days. You must complete incorporation within this period or apply for renewal.

💡 Final Advice:
Before submitting your name reservation, consider consulting a legal advisor or company registration expert to ensure compliance and avoid rejection. A well-thought-out name not only meets legal requirements but strengthens your brand identity!

5️⃣ Prepare Required Documents

Prepare the following incorporation documents:
Memorandum of Association (MoA) – Defines the company’s objectives
Articles of Association (AoA) – Internal rules & regulations
CNIC copies of directors/shareholders – Or passport in case of foreigners
Form 29 (Particulars of directors) – Mandatory for registration
Form 21 (Address of registered office) – Registered business address
No Objection Certificate (if needed) – For using sensitive words in name
Authorization (if filed via consultant) – If a lawyer/consultant files on your behalf
Templates are available on SECP portal.

6️⃣ Pay Incorporation Fee

When registering a company with the Securities and Exchange Commission of Pakistan (SECP), the fee you pay depends on the type of company (e.g. Private Limited, Single Member Company, Public Limited) and its authorized share capital. The fee covers the cost of processing your application, issuing incorporation documents, and registering your business.

📌 How is the Fee Calculated?

✅ The incorporation fee is based on:

Company type (e.g. Private Limited Company, Single Member Company, Public Company)
Authorized share capital (the maximum capital the company is allowed to issue)

✅ Higher authorized capital means a higher fee.

💳 Modes of Payment

SECP offers convenient payment options:

Online payment (credit card / debit card / internet banking)
Bank challan (deposit at designated branches of MCB or UBL)

💡 Tip: Online payment is faster and helps avoid delays that can occur with manual challan verification.

⏳ When to Pay

The incorporation fee is paid at the time of submitting your company registration application (after name reservation approval).
You must attach proof of payment (online receipt or challan copy) in your eServices application.

⚠ Important Points to Remember

Fees increase with higher authorized capital slabs (e.g. PKR 500,000, PKR 1 million, PKR 5 million, etc.).
If you later increase authorized capital, additional fees apply at that time.
Certain types of companies (e.g. companies with words like Investment, Bank, Insurance) may have higher or special fee requirements, or require additional approvals.
SECP updates its fee schedule from time to time. Always verify the latest fee on SECP’s official fee schedule before applying.

💡 Best Practices

Plan your authorized capital wisely — Set an amount that meets your business needs but doesn’t overburden you with unnecessary fees at the start.
Keep proof of payment safe — This will be needed for your incorporation records and for responding to any queries.

7️⃣ Submit Incorporation Application

Once you have prepared and finalized all necessary documents—including the Memorandum of Association (MOA), Articles of Association (AOA), copies of CNICs of directors, Form 1 (Declaration of Compliance), Form 21 (Notice of situation of registered office), and Form 29 (Particulars of directors and officers)—you are ready to submit your incorporation application.

👉 Processing by SECP
Once the application is submitted successfully, SECP will review the documents and application details. The typical processing time is 3 to 5 working days, provided that all documents are in order and no discrepancies are found.

👉 Track application status
You can log in to your SECP eServices account at any time to track the real-time status of your incorporation application. SECP may also send notifications via email regarding any deficiencies or the approval of your application.

8️⃣ Obtain Certificate of Incorporation

✅ If all documents are correct and in order, SECP will issue the Certificate of Incorporation. This is a digital certificate that is sent to the company’s official email address registered during the incorporation process. The certificate contains vital information such as:

Company Name (as approved by SECP)
Company Registration Number (CRN)
Date of Incorporation
Company Type (e.g., Private Limited, Single Member, Public Limited)

👉 The Certificate of Incorporation serves as your legal proof of company registration under the Companies Act, 2017. It enables your company to:

Open a corporate bank account
Apply for National Tax Number (NTN) and register with the Federal Board of Revenue (FBR)
Enter into contracts and agreements
Legally conduct business across Pakistan

👉 Accessing your certificate:

The digital certificate can be downloaded from the SECP eServices portal anytime.
It is advisable to keep both digital and printed copies for official use and compliance purposes.

👉 Next steps after receiving the certificate:

Get your company’s NTN issued from FBR.
Register for Sales Tax (if applicable).
Maintain statutory registers and records.
Hold the first board meeting to appoint officers, approve share certificates, and adopt company seal (if any).

⚠️ Note: Always verify that the information on your Certificate of Incorporation is accurate. If any errors are found, immediately contact SECP for rectification.

9️⃣ Post-Incorporation Compliance

After getting your certificate:
Apply for National Tax Number (NTN) from FBR: FBR IRIS
Open a company bank account in the company’s name.
Register with other regulators if needed (e.g., provincial tax authority, social security).
Sales tax registration (if applicable) for goods & services.

🔟 Annual and Regular Compliance

Once registered, you must:
File annual returns (Form A) and accounts with SECP.
Maintain proper books of accounts.
Hold Annual General Meetings (AGM) (except SMCs).
Update SECP on changes (e.g., change of directors, address).

Useful Resources

SECP official website: https://www.secp.gov.pk

SECP eServices: https://eservices.secp.gov.pk/eServices/

FBR: https://fbr.gov.pk

Benefits of Company Registration

Legal recognition of your business.
Limited liability protection.
Better access to funding and contracts.
Perpetual succession and continuity.

Summary of the Process

Step Action
1 Decide company type and name
2 Reserve name with SECP
3 Prepare MoA, AoA, and other documents
4 Pay incorporation fee
5 Submit online application
6 Obtain Certificate of Incorporation
7 Apply for NTN, open bank account
8 Ensure compliance with annual filings

Final Tips

Hire a company secretary or legal expert if you are unfamiliar with the process.
Always keep records of submissions and approvals.
Stay up-to-date with SECP notifications and compliance requirements.