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* Takes place simultaneously with another procedure.
Registration Requirements Details
Procedure 1.
E-file the company name at the Securities and Exchange Commission website
Time to complete:
1 day
Cost to complete:
PKR 200
Name of Agency:
Comment:
The company may propose one or more names, in order of preference. The name should not be inappropriate, deceptive, or designed to exploit or offend any religion. It should neither be identical to nor have any close resemblance to any existing company name.
The availability of the name can be checked online by searching existing company names. Certain guidelines prohibit the association of the company name with state sponsorship with the national leaders and the like. The official confirmation (or denial) of the name availability is received by email. This confirmation satisfies name search requirements if the name search fee of PKR 200 ( if the name is reserved on line) and PKR 500 ( if the name is reserved in person) is paid into the bank account of the regulatory authority.
Procedure 2.
Pay registration and name registration fees, and obtain bank receipt/ copy of treasury challans
Time to complete:
1 day
Cost to complete:
Name of Agency:
Comment:
The company pays stamp duty to the Sindh provincial government.
Procedure 3.
Register the company at the Registrar of Companies
Time to complete:
2-3 days
Cost to complete:
PKR 2500 registration fee + PKR 1000 filing fee ( Form 21 & form 29)
Name of Agency:
Comment:
Registration can be completed tonline through the eServices project that was launched to improve efficiency and effectiveness of the business processes of SECP with a speedy, transparent and paperless environment, making it easier for the representatives of companies and the business community to interact with and obtain information from the SECP through electronic modes in a swift and easy manner.
The following company incorporation documents are required for a private company: - Form-1, Declaration of compliance ( Form 1 is to be signed by (a) an advocate entitled to appear before any High Court in Pakistan or the Supreme Court; (b) a qualified chartered accountant (member of ICAP or ICMAP) practicing in Pakistan, or (c) a person named in the articles of association as a director or other officer). - Form-21, Identifying the location of the office. - Form-29, Particulars of directors, secretary, chief accountant, auditors, and others. - The subcriber’s national identity card and four copies of the memorandum and articles of association, with the signature of each member (in presence of a witness).
The fee schedule for company registration: Nominal share capital under or at Rs.100,000 : fee of Rs. 2,500 (online) and Rs.5,000 (offline) and for nominal share capital over Rs. 100,000 , above along with additional fee to be determined based on every Rs.100,000 or part thereof, of nominal share capital . In addition to the registration fee, filing fee at the rate of PKR 500 for each of the Form-21 (Form identifying location of office of the company) and Form-29 (identifying the particulars of officers of the company) is required to be paid if these are filed online. In case these documents are filed physically, the rate of fee will be PKR 1000 for each of these documents.
The treasury chalaan in the amount of the registration and filing fee are required to be deposited with the Muslim Commercial Bank Ltd.
Procedure 4.
obtain digital signiture
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Comment:
The digital signiture is obtained from the National Institutional Facilitation Technologies (NIFT). NIFT serves as the witness of all digitally signed documentation made through e Service.
Procedure 5.
Apply for a national tax number (NTN) and register for income tax.
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Comment:
Companies can check the status of their national tax number (NTN) within 24 hours of application. Since 2002, NTN are issued with a continuous valid term. Companies no longer need to renew their NTN.
Income tax is paid on filing the return, which is due in 6 months from the end of the company’s financial year (usually in June). In addition, the Income Tax Department charges a fee of 2% for the workers welfare fund at the time of its income tax assessment. The company is also supposed to act as a tax withholding agent for the state and deduct and deposit tax on most payments made in connection with its business activities. For this purposes, the company must file monthly returns with the tax authorities.
Every company must obtain the NTN by providing proof of registration, the memorandum and articles of association, the bank account number, the NTN of its directors, and an attestation of the registered business address. All required documents must be submitted to a station by a Class-I of Gazette Officer or an officer of a bank. A company can start its business activities without first obtaining the NTN, but the number is generally required by all the registering authorities: Chambers of Commerce, the Import-Export Regulatory Authority, the utility authority, and the like. The NTN branch (centralized for the entire country) at Islamabad allots a uniform number. The required form, along with the duly-verified documents must be submitted to the same NTN Center after the company is incorporated. The center quickly processes the application and issues the NTN in a week. The certificate is sent to the applicant’s registered address. If it is not delivered at the postal address, it can be obtained from the NTN center over the phone, and its status is communicated instantly. If undelivered, the NTN certificate can be collected from the specified office of the Central Board of Revenue (distinct from the NTN Center).
Procedure 6.
Register for sales tax
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
The facility of electronic filing of the Sales Tax return has also been made available, amongst others, to private and public limited companies. From July 1st 2008, electronic filing has been made mandatory for all categories of taxpayers. The procedure for e-filing has been laid down in the Sales Tax General Order No.4/2007.A registered person shall obtain a unique identifier, PIN code and a secure password by visiting the Federal Board of Revenue’s (FBR’s) web portal at e.fbr.gov.pk. Such person can then file the return by selecting declaration “sales tax” from the web portal. The return data shall be filled in a web form and directly transferred to the FBR’s server.
Payment can be made by selecting either of two options provided hereinbelow:
(i) Payment Challan: This option is to be utilized by persons who want to deposit tax amount in a branch of National Bank of Pakistan (NBP) which is not online with FBR. The payment challan shall be printed and taken to the bank where payment shall be made and CPR No. shall be obtained. This number shall be fed in the System using the ‘Feed CPR’ button.
(ii) e-Payment: This option can be availed by persons opting to deposit the tax amount in an NBP branch which is online with the FBR server. After verifying the return, e-Payment button can be clicked and a payment slip number shall be generated which can be taken to the bank and the amount deposited against the same. The bank shall accept the payment and provide an acknowledgement.
The application for registration may be submitted electronically on Form STR-1 as well as either through post or courier services to Central Registration Office (CRO). The Application can also be sent to the Local Registration Office (LRO) in the form of a hard copy. The LRO after proper scrutiny of the documents and any necessary editing of the Application and particulars, electronically forwards the application to CRO.
All the columns of the Forms have to be duly filled in as per instructions given with the Form.
After verification, the CRO will issue a Registration Certificate bearing registration number and mail the same to the Registered Person, on a prescribed Form (STR-5)
The CRO normally verifies the contents from the data available with it, but has an authority to get an enquiry conducted through LRO, to verify contents of declaration by a person. The CRO may reject the application within fifteen days from the date the complete application is received in the CRO, under intimation to the applicant, specifying the reasons for such rejection.
Procedure 7.
Register for the Professional Tax with the local tax authority
Time to complete:
7 days (simultaneous with the previous procedure)
Cost to complete:
no charge
Name of Agency:
Comment:
The Sindh Professionals, Trades, Calling and Employment Tax (i.e. called Professional Tax) is levied to businesses, professions, trades callings or employments in respect of which Professional Tax has been levied under the entry of the Seventh Schedule to the Sindh Finance Act, 1964 (hereinafter referred as “the act, 1964”). To regulate the registration, collection and payment of Professional Tax the Government of Sindh has made the Sindh Professions, Trades, Callings, and Employment Tax Rules, 1976 (hereinafter referred as “the rules”. The seventh schedule of the act notifying the taxable business, professions and employment and professional tax rate is annexed herewith as annex “A”.
Under the said rules, the Excise and Taxation Officer is empowered to enroll in survey register every person who carries on any business or profession or is liable to tax under entry of the schedule and thereafter he shall give notice in Form PCT-2 to such enrolled person. Any person who receive the said notice in Form PCT-2 if he is in opinion that he is not liable to pay the Professional Tax shall file a declaration, within fifteen days of receipt of such notice, in Form PCT-3 before the Excise & Taxation Officer. Incase no declaration is filed by the person within prescribed time, it will be presumed that he is liable to pay Professional Tax which will recovered according to law. Every person who is liable to pay tax shall be enrolled by the District Excise and Taxation Officer in register in Form PCT-1.
Every person who is liable to pay tax shall assess and deposit the tax every year into the Government Treasury under the Head of Account…XIII other taxes and duties-11- Other Head- Tax on Trades, Professions, Callings and Employment through a challan in Form PCT-8 and thereafter he shall furnish a declaration in Form PCT-3 accompanied by copies of the paid challan and other relevant documents to the District Excise & Taxation Officer latest by the 31st of August every year. The challan Form PCT-8 may be obtained from the District Excise and Taxation Office.
The District Excise & Taxation Officer shall, after receipt of the declaration of person and after being satisfied that the person enrolled is liable to pay tax, order his name to be entered in the Demand Register. Every person, whose name has been entered in the demand register, shall be given an assessee’s card in Form PCT-5 which shall be displayed by the assessee at a conspicuous place within the premises of the business. The assessee may obtain duplicate card, if needed, on payment of Rs. 100/-.
In case of start a new business or profession, a person who starts a business or profession is required to make a request to the District Excise & Taxation Officer to enroll himself as an assessee. The said request shall be filed in Form PCT-6 within thirty days from starting a business or profession.
All the persons, who have not received their assessee’s card in Form PCT-5 within six months from the date of publication of the said rules, are entitled to get their card by applying in Form PCT-6 for issuance of such card to the District Excise and Taxation Officer. On receipt of such application the District Excise and Taxation Officer shall order his name to be entered in the demand register in Form PCT-4 and card to be issued in Form PCT-5.
If any assessee closes its business or for any other reason ceases to be liable for professional tax, he shall within thirty days give such intimation to the District Excise and Taxation Officer in Form PCT-7.
If the Professional Tax has not been paid within prescribed time the District Excise and Taxation Officer shall issue a demand notice in Form PCT-9 accompanied with a challan in Form PCT-8. If no tax is paid within fifteen days of the issuance of the said demand notice the District Excise and Taxation Officer shall issue a show cause notice in Form PCT-10 and if in response thereof the assessee does not show cause to the satisfaction of the District Excise and Taxation Officer, as to the cause of delay in payment of the tax, District Excise and Taxation Officer may impose penalty not exceeding the amount of the tax unpaid.
Any person aggrieved by an order of the District Excise and Taxation Officer may prefer an appeal within thirty days from the date of the order to the Director of Excise and Taxation.
Procedure 8.
Register with the Employee Social Security Institution
Time to complete:
11 days (simultaneous with the previous procedure)
Cost to complete:
no charge
Name of Agency:
Comment:
SESSI is a self-generating Institution; the main source of income of SESSI is the Social Security Contribution. Employers covered under the Scheme contribute 6% of the wages to insurable workers.
The workers drawing wages not exceeding Rs.10,000/- per month or Rs.400/- per day and employed in registered establishments are liable to be covered under the Scheme in accordance with the provision of Social Security Ordinance.
Under Social Security Scheme secured workers are entitled to cash sickness benefit, injury benefit, maternity benefit, iddat benefit, disablement gratuity, disablement pension, ex-gratia grant and dependants get survivors' pension and death grant. For that Employers are required to have Social Security Registration accordingly.
Procedure 9.
Register for old age benefits with Employees Old-Age Benefits Institution (EOBI).
Time to complete:
11 days (simultaneous with the previous procedure)
Cost to complete:
no charge
Name of Agency:
Comment:
With effect from July 1, 2008, when an industry or a commercial establishment has 5 or more employees or if any industry or commercial establishment employing less than 5 employees voluntarily opt to be included in the scheme, such industry or commercial establishment is required to be registered accordingly.
Under Employees Old Age Benefit Scheme, Insured Persons are entitled to avail benefit like, Old-Age Pension (on the event of retirement), Invalidity Pension (In case of permanent disability), Old-Age Grant (an Insured Person attained superannuation age, but does not posses the minimum threshold for pension) Survivor's Pension (in case an Insured Person is expired).
Minimum wages of Employees has since been increased to PKR 6,000. Minimum payable pension is now increased to PKR 2000.
The EOBI does not receive any financial assistance from the Government for carrying out its Operations. A contribution equal to 5% of minimum wages has to be paid by the Employers of all the Industrial and Commercial Organizations where EOB act is applicable and the monthly contribution is now increased to PKR 300 per employee per month. Contribution equal to 1% of minimum wages is payable by the Employees of said Organizations and PKR 60 per month is payable by every employee .
Procedure 10.
Register with Pakistan Shops and Establishment Ordinance
Time to complete:
7 days
Cost to complete:
PKR 10
Name of Agency:
Comment:
Registration of establishment and fee for registration: (1) Every establishment, other than a one man shop, and factories employing clerical staff within the factory premises, shall be registered with the Deputy Chief Inspector for the area within which such establishment is situated. For the purposes of this section, a one-man shop means a shop run by an employer or by any member of his family without engaging an employee.
(2) An application for the registration of an establishment shall be made by the employer on Form A and shall be accompanied by a Treasury challan under Head [9][XXXVI-Miscellaneous Departments-G-Miscellaneous-(S)-Receipts under the West Pakistan Shops and Establishments Ordinance of1969] for an amount depending on the number of workers. - 1 to 5 workers: fee is PKR 2. - 6 to 10 workers: PKR 3 - 11 to 20 workers: PKR 5. - More than 20 workers: PKR 10.
(3) An application for establishment registration shall be made within 3 months of the ordinance coming into force (for establishments existing at the time) and within 2 months of setting up the establishment or the application of the ordinance to it (if an establishment is set up after the ordinance comes into force or if the provisions of the ordinance are subsequently applied to it). (4) On receipt of the application and the fees specified in Subsection 2, the Deputy Chief Inspector shall, on being satisfied about the correctness of the application, register the establishment in the Register of Establishments to be maintained in Form B and shall issue a registration certificate to the employer in Form C. (5) The registration certificate shall be prominently displayed by the employer at the establishment and shall be renewed every 2 years on depositing the fee prescribed in Subsection 2.
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