Deciding to formally register your business is a big step, and picking the right structure matters more than most people expect. This guide walks through the main business structures available in Pakistan and what it actually takes to get a private limited company incorporated through SECP.
Choosing a Business Structure
A sole proprietorship, registered with your local trade authority, is the simplest route but leaves you personally liable for everything. A partnership firm works similarly but is shared between two or more people. A private limited company, registered with the Securities and Exchange Commission of Pakistan (SECP), is a separate legal entity where your liability is limited to your share capital — the preferred structure for anyone planning to grow, bring in investors, or simply wants the legal separation between personal and business assets.
Steps to Register a Private Limited Company
- Reserve a name on SECP's online portal — it has to be unique and not misleading
- Prepare your documents — Memorandum and Articles of Association, plus CNIC copies of every director and shareholder
- Submit the incorporation application online with your registered office address and share structure
- Pay the SECP fee, which scales with your authorized capital and starts from around Rs. 1,500
- Receive your Certificate of Incorporation, typically within 3-7 working days
- Complete post-registration steps — open a business bank account, register your NTN with FBR, and apply for sales tax registration if your business needs it
Documents You'll Need
- CNIC copies of all directors and shareholders
- Proof of your registered office address (utility bill or tenancy agreement)
- Memorandum of Association and Articles of Association
- SECP Form 1 (compliance declaration), Form 21 (registered office notice), and Form 29 (director particulars)
What It Costs
SECP's own registration fee is capital-based and starts around Rs. 1,500 for smaller authorized capital, rising in steps as capital increases. Once you add document preparation, NTN registration, and a consultant's professional fee, total setup cost for a straightforward private limited company typically lands somewhere between Rs. 25,000 and Rs. 60,000.
After Incorporation
A newly registered company pays corporate income tax at 29% on profit, must file an annual income tax return, submit monthly withholding tax statements, and file sales tax returns if registered for sales tax. SECP also requires an annual return separate from your FBR filing — missing either one triggers penalties.