Registering an existing unregistered Company In Pakistan is a crucial step for businesses that wish to formalize their operations, gain legal recognition, and enjoy the benefits of the formal economy. The registration process involves several steps that ensure the company complies with the legal and regulatory framework of the country. Here’s a detailed guide on how to register an existing unregistered company in Pakistan.
Determine the Business Structure
Before registering, it’s important to decide the structure of the company. If the business was previously operating as an informal sole proprietorship or partnership, the owner(s) may need to choose whether to retain the existing structure or convert the business into a more formal entity, such as a private limited company or public limited company. The decision should be based on factors like liability, tax obligations, and the size of the business.
For example:
Sole Proprietorship: The simplest form of business with no legal distinction between the owner and the business.
Partnership: owned by two or more people, with partners sharing liability, profits, and losses.
Private Limited Company: A separate legal entity where liability is limited to the shareholders’ investment.
Register with the Securities and Exchange Commission of Pakistan (SECP)
The next step is to register the company with the Securities and Exchange Commission of Pakistan (SECP), which is the main regulatory body responsible for company registration. This process can be completed online via the SECP’s e-Services portal.
Steps involved in SECP registration:
Reserve a Company Name: The first step is to choose and reserve a unique name for the company, ensuring it complies with SECP guidelines. The name should not be similar to any existing registered companies.
Prepare Required Documents: Depending on the business structure, various documents need to be prepared, including the Memorandum of Association and Articles of Association for a private limited company. Other essential documents include the National Identity Cards (NICs) of the directors or partners and proof of the business address.
Complete the Online Application: Submit the required documents and details of the company’s directors and shareholders through the SECP’s online portal. Pay the registration fee as specified by the SECP.
Once the application is processed and approved, the company will receive a Certificate of Incorporation, which signifies that the business is legally registered.
Register for a National Tax Number (NTN) with the Federal Board of Revenue (FBR)
After registering with the SECP, the next step is to register the company with the Federal Board of Revenue (FBR) to obtain a National Tax Number (NTN). This number is essential for tax purposes and ensures the company complies with tax laws in Pakistan.
Online Registration: The FBR allows online registration through its website. You will need to provide the Certificate of Incorporation, the identity documents of the directors, and the business address.
File Taxes and Comply with FBR Regulations: Once the Company is registered in Lahore is legally required to file annual tax returns and comply with other tax obligations set by the FBR.
Additional Licenses and Registrations
Depending on the nature of the business, additional licenses or permits may be required from local or provincial authorities. For example, businesses in sectors such as manufacturing, healthcare, or education may need specific industry licenses. These can typically be obtained from relevant government departments after SECP registration.
Open a Corporate Bank Account
Once the company is registered and has an NTN, it can open a corporate bank account. A separate bank account is required by law for a registered business to conduct business transactions. This ensures transparency and proper financial management.
Update Contracts and Documentation
After registration, it’s essential to update all business documentation, including contracts, invoices, and agreements, to reflect the new status of the business as a registered entity. This step is crucial for building credibility with clients, suppliers, and other stakeholders.
Conclusion
Registering an existing unregistered company in Pakistan involves transitioning from informal operations to a legally recognized entity. By registering with the Securities and Exchange Commission of Pakistan (SECP) and obtaining a National Tax Number (NTN) from the Federal Board of Revenue (FBR), businesses can enjoy benefits such as legal protection with Hamza & Hamza Law Associates, limited liability, and tax compliance. The process not only legitimizes the business but also opens doors to growth, investment, and long-term success in Pakistan’s formal economy.
Registering an existing unregistered company in Pakistan is an essential step for formalizing the business, ensuring legal compliance, and unlocking the benefits that come with legal recognition. Whether the business has been operating informally as a sole proprietorship, partnership, or otherwise, the registration process provides a path to formalize the company’s operations and enhance its credibility. Here’s a step-by-step guide on how an existing unregistered company can be registered in Pakistan. If the business was operating as a sole proprietorship or partnership, you will also need to provide details of the business’s prior operations.
