Doing Business in Lahore?
Company Registration and Firm Setup Made Easy With Tax Care
TAX CARE provides clients with precise knowledge of how to incorporate and operate a business in Lahore. We are skilled in offering company registration services for start-up entrepreneurs, SME owners, and multinational companies in Lahore.
Our business and tax advisors have been setting up new firms in Lahore for years and will manage all the complex legal documents to get the job done. And it all begins with a free consultation where we will take you through all the latest news on how to start a business in Lahore.
The type of business entity you choose for the business can provide countless benefits in the shape of compliance management and Taxation issues with the Govt Departments.
We at Tax Care help in the best decisions making for selecting your business entity. Our focus is always on the legal requirements, which your business required at the stage of selection and operations.
Sole Proprietorship
This is the simplest and easiest way to start a business in Pakistan. One person can solely begin a business and be the owner and responsible for all types of financial transactions. The business is started and registered under one Individual and is answerable to income tax only. Examples of some companies that come under this category are Beauty parlors, Event management, Traveling and Tourist guide, Restaurants and Petrol pumps, etc.
Public Limited Company
A Public Limited company is a limited liability company whose shares can be openly sold and traded in public. Such companies must reveal the real financial strength so that the buyers and sellers know the exact worth of the company.
Limited by Guarantee
A Company Limited by Guarantee is a special form of Public Limited company which is used by non-profit organizations. The profit of such companies is not distributed among the members instead used for the purpose for which the company is formed. The directors of such companies act as guarantors and guarantee to contribute an amount in case the company needs to wind up.
Limited by Shares
A Company Limited by shares can be a Private or a Public Limited company. The ownership of the members of this company is limited to the amount of price paid for the shares they hold. The rights and duties of individuals are in direct proportion to an individual’s investment. The company exists as an independent entity, and the owners are not held responsible in case the company faces any financial problems.
An Unlimited Company
An Unlimited Company is like a Private Company Limited by Shares only that the liability of the member is not limited. If the company is unable to pay its debt, the directors and shareholders will lose their personal assets to pay that. So no matter how many shares you hold you still risk a lot. Such type of companies are not very common and have fewer advantages.
Private Limited Company Registration in Lahore, Pakistan
A Private Limited company is a Legal business entity that can be started by a minimum of 2 directors. This type of Company cannot trade its shares publicly and also limited up to 50 shareholders. The liability of the owner is limited and that the shares cannot be sold openly in the stock market other than the shareholders. Registration Authority of the Private Limited Company is the Securities and Exchange Commission of Pakistan and regulates under Companies Act 2017.
Benefits of Company Registration in Lahore, Pakistan
Private Limited Company Registration is more famous in Lahore and all over Pakistan as compared with other patterns of Business registration. Private Limited Company structure is suitable for the Persons who are starting the business on the initial stage because this pattern can get funding in the share of shareholding. The Company can register by a minimum of 2 Persons who become Directors later in the Company as getting shareholding as per their Capital. Directors of the Company quickly transfer their shares to others if required in the future.
Private Limited Company is a separate legal entity. In this Business Entity Directors and shareholders’ liability is limited up to the extent of their shareholding, which means Private Limited Company is protecting its Directors and shareholders from against liability of the Company. Private Limited Company is more famous due to this prominent reason.
There are some benefits in connection to private limited Company registration in Lahore, Pakistan.
- A formation which attracts funding
- Separate legal entity.
- Smooth Business Growth domestically and internationally.
- No-Risk of Personal Assets attachment in case of loss
- Being legal entity comfortable in getting foreign investment
- Transfer of shares to others through an easy procedure
- Perpetual succession
- Recognized
- Market Place Credibility
- Low Cost and Highly Targeted
- Exponential Chances of Growth
Steps for Company Registration in Lahore, Pakistan
SECP User Login Creation
Before processing Application for Company Registration, we have to create Directors Login in SECP. For this purpose following information is required;
- Copy of CNIC
- Email of Proposed Director
- Mobile Number of Proposed Director
Application for Name Reservation
The first step for company registration is to submit an application for “Availability of Name" for the proposed Company in the Security and Exchange Commission of Pakistan (SECP).
Pay Fee Associated with Company Registration and Submission of Requisite Documents
After receiving the Name Availability Letter from SECP, the applicants have to apply for registration of the Company through the online Process or Manual depends on Client requirements.
List of Documents Required for Company Registration in Lahore, Pakistan
Following documents and Forms requires by SECP to file Application for Company Registration;
- FORM II (Application for Registration/ Incorporation)
- Name Availability Letter
- CNIC Copies of Proposed Directors
- Memorandum and Articles of Association
The fees associated with the process of Company Registration paid using the relevant bank form at designated branches of The Muslim Commercial Bank (MCB) and United Bank Limited (UBL) in Pakistan.
Procedure for Company Registration in Lahore, Pakistan
Minimum Requirements for Registration of Company in Lahore, Pakistan
- Minimum 2 Directors required.
- Minimum 2 Shareholders required.
- Minimum Share capital Rs. 100,000/-
Registration of Company for Income Tax, Sales Tax and Professional Tax
If you wish to get Income Tax for your Company, then you need 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 (TRF-01)
- Incorporation Certificate
- Memorandum and Articles of Association
- Bank account number
- Copies of National Identity Cards (NICs) of company Directors
- Electricity Bill
- Tenancy Agreement along with Owner CNIC copy or Ownership Proof in case Directors Hold the ownership of Business Premises.
Professional Tax Registration
ETO Professional Tax will issue a Payment Challan (PFT-2) on 32-A based on Company Paid-up Capital. You have to Deposit Professional Tax in any branch of NBP/SBP in Punjab later; you have to provide a copy of Paid Challan to ETO Professional Tax.
Modes of Professional Tax
Assessment Criteria for Professional Tax held under the following parameters:
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Companies |
On Paid Up Capital of the Company |
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Factories |
On Numbers of Employees |
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Commercial Establishments |
Based on Number of Employees except for retailers and Whole sellers |
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Importers/ Exporters |
On the Value of Goods Imported or Exported During the Year |
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Government Contractors |
On the Value of Services provided During the Year |
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Government Property Developers |
On the Value of Contracts Executed |
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Service Providers |
Fixed |
Registration of Company with ESSI and EOBI
Depending on the location of the business, the company must register with:
- Punjab Employees Social Security Institutions (PESSI)
- Sindh Employees Social Security Institution (SESSI)
- Baluchistan Province (BESSI) or Khyber Pakhtunkhwa (KPKESSI).
In Case Employees are registered under Employees Old-Age Benefits Institution (EOBI) They can get a pension at the age of their retirement and in the case of disability of any employee old-age grant and survivor’s pension. Industries or Commercial Entities having five or more employees needs to be registered with the Region wise Employees Old-age Benefits Institution (EOBI).
Registration of Company with Labour Department of the District
Registered Companies who wish to protect the labor rights of their workers are required to register with the District Chief Inspector of the labor department in their Region. For registration, the employer must submit the application Form A accompanied by the relevant bank form.
We at Tax Care commonly advise and furnish legal opinions on the following areas;
- Incorporation and registration of a Private or a Public Company in Lahore, Pakistan
- Incorporation and Registration of a Partnership Firm in Lahore
- Preparation of Memorandum and Articles of Association of your company
- Annual General Meeting and Extraordinary General Meetings Drafting and Documentation
- Obtaining the Registration Certificate
- Development of Legal Policies and Disclaimer Documentation for the proper performance of your company
- Registering Company Trade Mark before the Intellectual Property Organization
- Advising on employee placement within the business
- Employment Contracts of Company with its Employees
- Appointment and Resignation of Directors
- Change of Registered Office Address
- Change in Main Objects of the Company
- Change of Company Name
- Winding up of Company through Easy Exit Scheme of SECP
- Transfer of Company Shares
- Increasing Authorised and Paid-up Capital of the Company
- Changing the status of Company in LLP and SMC PVT Limited.
To Register A Company in Lahore
Just Dial +923454844646