Individual
An Individual can start business by getting NTN from FBR, or if an individual already have NTN than only new Business would be added in the tax profile (same NTN).
Foreign Company Branch/Liaison Office
Foreign Company if wishes to establish its place of business in Pakistan Following step are required
BOI Permission
- A foreign company is first required to obtain a permission letter from the Board of Investment, Government of Pakistan. Permission letter is issued with a specific validity period (from 1 year to 3 years) for opening and maintaining of place of business in Pakistan.
- For seeking permission letter from BOI following steps are taken:
An application on prescribed form along with eight sets of following documents
- Application Form (duly filled in and signed with stamp)
- Copy of registration of the foreign company duly attested by respective Pakistani Embassy;
- Copy of Articles and Memorandum of Association duly attested by Respective Pakistan Mission;
- Copy of Board Resolution / Authority letter of the company to establish Branch / Liaison Office in Pakistan;
- Copy of contract / agreement (in case of Branch Office Only)
- Company Profile;
- List of board of directors containing their name, surname, passport No. usual residential address; along with copies of passport of all board members.
- Appointment letter of designated person authorized to act on behalf of the company; and
- Authority letter in favor of authorized person to represent the case before BOI and SECP.
On receipt of complete documents, BOI examines the documents and circulate the request to all concerned quarters for their views / comments.
Having received clearances from all concerned quarters / agencies, BOI grants permission to foreign company to open their Branch / Liaison office in Pakistan. Minimum required time to process the permission from BOI is six weeks from the date of presenting the case in BOI.
Seek Availability of Company Name from SECP
A foreign company is required to seek “Availability of Name” of proposed company from Securities and Exchange Commission of Pakistan (SECP).
Documentation
After seeking company name availability, next step is documentation. A foreign company is required to file the following documents, within thirty days of establishing a place of business in Pakistan, to the registrar concerned:
Forms (38-43) as prescribed under the Rules
- Form 38: Certified copy of the charter, statute or Memorandum and Articles of the company.
- Form 39: Address of registered office or principal office of the company.
- Form 40: Particulars of directors, Chief Executive and Secretary, if any, of the company.
- Form 41: Particulars of principal officer of the company in Pakistan.
- Form 42: Particulars of person(s) resident in Pakistan authorized to accept service on behalf of the foreign company along with the certified copy of the appointment order, authority letter of board of directors’ resolution and consent of the principle officer.
- Form 43: Address of principal place(s) of business in Pakistan of the foreign company.
Branch Office: Branch Office is established by a foreign company to fulfill its contractual obligations with the public or private sector in Pakistan. Their activity will be restricted to the work mentioned in the agreement / contract signed. However they cannot indulge in commercial / trading activities.
Liaison Office: Liaison Office is established by a foreign company for promotion of products(s), provision of technical advice & assistance, exploring the possibility of Joint Collaboration and export promotion. However, they cannot undertake any commercial / trading activities.