How to Register a Foreign Company in Pakistan
Pakistan has a liberal foreign investment regime, which allows foreign investors to make investments and register a company in Pakistan. The foreign investors can do so through a wholly-owned subsidiary in all sectors of the economy including the IT Sector. Moreover, the investors also have the liberty of repatriating the profits to their home country. Moreover, to boost the IT sector in Pakistan, the government grants certain tax privileges and exemptions to companies in the IT sector. For instance, income that has been generated through IT exports is exempted from income tax (which is typically applicable on all exports and services). Here we have listed the steps a foreign company can take to register in Pakistan. Step 1: Choose a category The first step is to choose a category for the company. A foreign investor can choose between two categories: private limited and single-member private limited, which can be incorporated with the Securities & Exchange Commission of Pakistan (SECP):
- Single Member Company (Maximum one shareholder, minimum one director) Foreign companies that have only one shareholder should choose this category.
- Private limited (Minimum two shareholders and maximum 50 shareholders, minimum of two directors) This category is ideal for foreign companies that have more than one shareholders or partners.
- Name of the company
- Principal Line of Business (a brief description of intended business)
- Correspondence address in Pakistan
- Name of shareholder(s), Director(s) and Chief Executive along with their copies of passport in case of a foreigner or CNIC/POC/NICOP in case of Pakistani
- Detail of shares to be subscribed by each shareholder
- Undertaking by the foreign shareholders and directors on the prescribed format
- Documents related to a foreign company (in case the proposed shareholder is a company)
- Profile of the company
- Detail of its directors, their nationality and country of origin
- Board Resolution (Approval of investment in a local company)
- Articles of association
- Memorandum of association
- Certificate of incorporation
- Evidence of Payment of incorporation fee (depending on authorized capital, the fee can be as low as approximately PKR 3,000)
- Certified to be true by the public officer in the country where the company is incorporated/ Notary public of the country where the company is incorporated/ an affidavit of a responsible officer of the company in the country where the company is incorporated.
- Authenticated by a Pakistani diplomatic consular or consulate officer