- November 12, 2016
- Posted by: Admin
- Category: Uncategorized
So far, we’ve discussed about Business Pitch and Business Plans that were limited to startup process. We now move onto a very crucial prospect i.e. of registration of a company – particularly in Pakistan. It is the last of endeavors in the course of business settlement, and for some entrepreneurs and founders; one of the ultimate goals. Therefore, it requires a broad-comprehensive view on the subject of registration.
Hence, for your ease of understanding, we’ve simplified the procedures with a mindset that reader would have a better understanding of each necessary step, without having to dive into the complexity of business. However, there are certain rules and ordinance which is followed by the Security and Exchange Commission of Pakistan. So, the applicants must comply with the incorporation process as under:
1. Name your company and Get it approved
While choosing the name for your company – make sure, not to use the Prohibited terms. Any deceptive or inappropriate words will not be approved by the SECP and the Validity of your proposed selection of name will be scrutinized. So as to assure that, it is neither identical with the existing companies’ name nor closely resembling. For that reason, you must abide by the criteria laid down for naming the company, to get the possible approval by SECP.
2. Pay the fees for incorporation and Register your company
A name availability certificate is required from SECP and for the purpose you may file application. The fees for which could be paid using any bank challans at designated Muslim Commercial Banks (MCB). After this, you come to a level of registration where the SECP ask you to submit the following documents:
- Declaration of compliance
- Identification of office’s location
- Particulars of directors, secretary, chief accountant, auditors and other
- Copies of the Memorandum and Articles of Association with each member’s signature
A quick brief-on:
Memorandum of Association explains your business sector of the company e.g. Institution, Travel agency, Trading or manufacturing, Supply or chain of stores. To put simply, MOA tells about the relationship of your company with the outside world.
Articles of Association lets know about the day-to-day proceedings within the company i.e. what role CEO and directors would play, business concerned meetings and the appointments of employees, in short- how the company will run.
3. Get Digital Signature and Make a Company Seal
The signature is granted by National Institutional Facilitation Technologies (NIFT) and can be obtained using E-services of SECP. After the certificate of incorporation is issued, you may be required to present a company seal, depending on which city you’re going to start your business in. On the necessity point, it wouldn’t be wrong to mention that some states require a corporation to have a corporate seal, which is also sometimes referred as company seal.
4. Register for Income, Sales and Professional Taxes
To register for Income tax, you’re supposed to apply for a National Tax Number (NTN) at the tax facilitation of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). The requirements for this application are:
- NTN form
- Proof of registration
- Memorandum and Articles of association
- Bank account number
- Copies of National Identity Cards (NICs) of companies’ Directors
- An attestation of business address
All of these are to be submitted at the nearest tax facilitation counter of the RTO in Pakistan.
Sales tax, like the income tax can be registered for, by applying for a Sales Tax Number (STN) at the tax facilitation centre of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR).
For the Professional tax, you’ll need to register with Excise and Taxation (ET) Department of the District.
5. Register with ESSI and EOBI
Depending on the location of your business, you’ll either need to register with
- Punjab Employees Social Security Institutions (PESSI)
- Sindh Employees Social Security Institution (SESSI)
- Likewise (BESSI) or (KPKESSI) for Balochistan and Khyber Pakhtunkhwa respectively.
Under the Employees Old Age Benefits Institution (EOBI), insured employees are entitled to a pension, upon retirement, invalidity in the case of disability, old-age grant and survivor’s pension. Every industry or a commercial establishment with five or more employees has to be registered with the federal Employees Old age Benefits Institution (EOBI).
6. Register with the Labor Department of the District
To safeguard the Labor standard of the workers, every establishment other than one man shop required to be registered with the District Chief Inspector of the Labor department in each district. For registration, employer must submit the application form A accompanied with Bank challan.
That was a detailed summary, a bit boring yet highly essential to understand the establishment procedure of your viable business idea or plan. Want to know about firm registration and partnership firm registration in Pakistan? Let us know via email at inbox[at]techjuice.pk. We’ll sure get back here with an interesting and informative article.
Courtesy: Asim Islam (Senior Executive Taxation – Innovative Pvt Limited)