Registering a company gives your business a separate legal identity, limits the personal liability of its owners and makes it easier to raise investment, open bank accounts and work with large clients. In Pakistan, companies are incorporated with the Securities and Exchange Commission of Pakistan (SECP) under the Companies Act, 2017, through an online process.
Types of companies
- Single Member Company (SMC): a private company with one member.
- Private Limited Company: a private company with two or more members.
- Public Company: can be listed or unlisted and has more extensive requirements.
- Others: such as companies limited by guarantee and not-for-profit associations.
Most small and medium businesses choose an SMC or a private limited company.
Step 1: Plan the structure
Decide who the members (shareholders) and directors will be, how shares will be divided, the authorised and paid-up capital, the principal line of business and the registered office address. Getting these decisions right at the start avoids costly changes later.
Step 2: Create an SECP account
The applicant creates a user account on SECP’s online system using their CNIC or passport details. This account is used to submit the name reservation and incorporation.
Step 3: Reserve the company name
Submit proposed names in order of preference. SECP checks them against its rules and existing companies. Names should not be identical or deceptively similar to existing names and should not include restricted words without permission. Once approved, the name is reserved for a limited period.
Step 4: Prepare the constitutional documents
The Memorandum of Association (MOA) sets out the company’s name, registered office province, principal business and capital. The Articles of Association (AOA) contain the internal rules for management, meetings and shares. Standard formats are available, but they should be adapted to your business.
Step 5: File the incorporation application
Submit the incorporation documents online with details of subscribers, directors and the chief executive, together with the prescribed fee. SECP may ask for clarifications. Foreign subscribers or directors may need security clearance.
Step 6: Receive the certificate of incorporation
Once approved, SECP issues the certificate of incorporation. The company now exists as a separate legal person, and its incorporation number appears on the certificate.
Step 7: Register with FBR and open a bank account
The company is registered with FBR for income tax, and for sales tax if needed. With the incorporation documents and NTN, the company can open a bank account in its own name.
After incorporation
- Maintain statutory registers and minutes.
- Hold board and general meetings as required.
- File the annual return and other forms when changes occur.
- Appoint auditors where required and prepare financial statements.
- File income tax returns for the company every year.
See our SECP compliance service for ongoing support.
Documents checklist
- CNICs of all subscribers and directors (passports for foreigners).
- Proposed names.
- Registered office address and proof.
- Details of capital and shareholding.
- Principal line of business.
- Contact details of directors.
Practical example: two founders register a company
Two friends in Gujrat plan to start an IT services business and want to work with foreign clients. They decide on a private limited company, with each holding fifty percent of the shares and both acting as directors. They reserve the name, adapt the standard articles to include clauses on decision-making and share transfers, and file the incorporation. After receiving the certificate, they register the company with FBR, open a business bank account and set up a simple compliance calendar. Their clients now contract with the company, and the founders’ personal assets are separated from business risks.
Choosing a good company name
- Keep it distinctive; generic names are often rejected.
- Avoid names identical or very similar to existing companies or famous brands.
- Avoid restricted words unless you have the required approvals.
- Check whether the name is also available as a domain and on social media.
- Consider trademark registration for the brand name.
Deciding authorised and paid-up capital
Authorised capital is the maximum share capital the company may issue under its memorandum; paid-up capital is the amount actually subscribed and paid. Choosing a reasonable authorised capital avoids an early need to increase it, while paid-up capital should reflect what the founders actually contribute. Government fees can depend on the authorised capital, so plan sensibly.
First-year compliance calendar
- Issue share certificates and set up the register of members.
- Hold the first board meeting and record minutes.
- Appoint auditors where required.
- Register for sales tax or PRA if your business needs it.
- Prepare financial statements at the year end.
- Hold the annual general meeting and file the annual return.
- File the company’s income tax return.
Expert tips
- Put a shareholders’ agreement in place alongside the articles when there are several founders.
- Keep company money in the company’s bank account and pay yourself through proper salary or dividends.
- Report changes in directors, address or shareholding promptly.
- Keep the incorporation documents and certificates safely; banks ask for them repeatedly.
Key terms explained
- SECP: Securities and Exchange Commission of Pakistan, the company registrar and regulator.
- MOA: Memorandum of Association, the document stating the company’s name, objects and capital.
- AOA: Articles of Association, the internal rules for managing the company.
- Subscriber: A person who signs the memorandum and becomes a first member of the company.
- Annual return: A yearly filing with SECP containing key information about the company.
Frequently asked questions
How long does company registration take?
With complete documents, incorporation is often completed within a few working days after name approval. Fast-track options are available.
Can I register a company alone?
Yes, as a single member company.
Do I need an office?
A registered office address in Pakistan is required for official correspondence.
Can a company be converted from a sole proprietorship?
You can incorporate a new company and transfer the business into it. Tax and legal aspects should be planned.
Incorporate with confidence
We handle name reservation, documents, incorporation and FBR registration. See our private limited company registration service or WhatsApp us at +92 329 9554206.
How Tax & Law Hub can help
From choosing a structure to staying compliant, we can:
- advise you on the right structure in a free consultation,
- register sole proprietorships, partnership firms and SECP companies,
- draft partnership deeds and company documents,
- file trademark applications and manage annual SECP compliance.
We handle the paperwork so you can focus on building your business.
This article is general information about Pakistani tax, corporate and legal procedures and is not advice for your specific situation. Laws, rates and procedures change, especially through annual Finance Acts. Last reviewed: November 2026. For advice on your case, contact Tax & Law Hub.
