Starting a business in Pakistan involves more paperwork decisions than most new owners expect — not because the process is hard, but because picking the wrong registrations (or skipping necessary ones) creates avoidable compliance headaches down the line. Here's the practical roadmap for getting registered correctly the first time.
Which Registrations Do You Actually Need?
| Registration | Who Needs It | Typical Timeline |
|---|---|---|
| NTN (income tax number) | Every business, no exceptions | 1–2 days |
| Sales tax (STRN) | Manufacturers, importers/exporters, and traders above Rs. 10M turnover | 3–7 days |
| Provincial sales tax | Service providers above Rs. 10M turnover | 3–7 days |
| SECP company registration | Anyone wanting a separate legal entity or limited liability | 7–14 days |
| EOBI registration | Any employer with 5+ staff | 2–5 days |
Most small businesses and freelancers genuinely only need an NTN. Register STRN only once you're selling to GST-registered buyers or crossing the Rs. 10 million threshold, and incorporate a company only when limited liability or a client requirement makes it necessary — extra registrations mean extra ongoing filings, not extra benefit.
Registering Your NTN First
Go to iris.fbr.gov.pk, choose your taxpayer type (Individual for a sole proprietor, AOP for a partnership, or Company once SECP has issued incorporation), verify your CNIC via OTP, and fill in business name, address, and sector code. Upload your CNIC and a rent agreement or ownership document for your business premises. FBR typically issues the NTN within 24–48 hours. For a sole proprietor, your personal NTN and business NTN are the same number — business income simply gets declared under Business Income in your own return.
Federal vs Provincial Sales Tax
This trips up a lot of new owners: goods businesses register with FBR for federal sales tax (18% standard rate), while service businesses register with their province's revenue authority instead — PRA in Punjab, SRB in Sindh, KPRA in KPK, or BRA in Balochistan. Selling both goods and services can mean registering with both. IT export services remain zero-rated across the board.
Choosing a Business Structure
A sole proprietorship pays individual slab rates (0–35%) and suits most small operations. A company pays a flat 29% corporate rate, which only becomes more efficient than individual slabs once annual profit crosses roughly Rs. 5 million. Below that, sole proprietorship is usually cheaper on tax alone — though incorporation still offers liability protection and is sometimes required by larger clients or tenders.
What Comes After Registration
| Obligation | Frequency | Deadline |
|---|---|---|
| Sales tax return | Monthly | 18th of following month |
| WHT statement | Monthly | 15th of following month |
| Advance income tax | Quarterly | Sep 25 / Dec 25 / Mar 25 / Jun 15 |
| Annual income tax return | Annual | Sep 30 (individuals/AOP) |
Once registered, you also become a withholding agent on payments you make — 7.5% on services and 3% on supply payments to contractors, plus salary WHT on employees. These deductions must reach FBR within 7 days of month-end via PSID, with the monthly statement filed by the 15th.
Mistakes That Cost New Businesses Money
- Registering as a company when a sole proprietorship would have been simpler and cheaper
- Forgetting provincial sales tax registration for a services business
- Missing EOBI registration once headcount hits five employees
- Mixing personal and business bank accounts, which complicates wealth statement reconciliation later
Let NTNWaale Register Everything for You
Whether you need just an NTN or a full company plus tax registrations, NTNWaale handles the entire process remotely and sets up a compliance calendar so you never miss a filing date.