Private Limited Company Registration Guideline
Ultimate guide to register private limited company in Pakistan.
To establish a business is a desire of many people, but most of people don’t know how to start a business, how to register a company and how to document all business for taxes. This article is a simple guide about “How to register a Private Limited company in Pakistan?”. Hopefully this will help and guide you. So Lets start.
- Choose an appropriate Business name
The first step is to choose your business name, which should be unique and positive. If it also expresses the nature of your business, then its another plus for you. Any way choosing right business name is the essential and most critical part of any business.
Remember! You can change your company name later.
- Claim your Business Name at SECP
After choosing/selecting right name for your business, the next setup is to claim/register it at SECP (Securities Exchange Commission of Pakistan).
Remember! you don’t register names which are already in their databases.
Use SECP’s Company Name Search to check if your proposed name is available or not. If your proposed name is available, claim it and you have to pay Rs. 200/- Online via Credit card or offline in Bank.
Refer to SECP’s Company Name Reservation Guide by SECP for more information.
If your Busniess name successfully reserved then You will receive an email at your email address within two to three working days. If there is any objection then you may need to repeat the first step.
Your company name will be reserved for a period of 90 days. You can either pick up the Company Name Reservation Certificate from the concerned Company Registration Office (CRO) on the next working day or it will be delivered to your address in 2 – 4 days.
Congratz in advance…. 🙂
- Documents required to submit:
Following documents are required to submit for incorporation.
- Memorandum of Association
- Articles of Association
- Form 1, Form 21 & Form 29
- CNICs of Directors
- Bank Deposit Receipt
What is MEMORANDUM OF ASSOCIATION?
Memorandum of Association contains the fundamental conditions upon which the company is allowed to operate. It is the document that governs the relationship between the company and the outside. It is one of the most important documents and must be drafted with care.
Sample Memorandums according to nature of business are available online. If you do not find the sample for your business then you may need to hire a professional lawyer to draft those for your particular business.
What is ARTICLES OF ASSOCIATION?
Articles of Association along with the Memorandum of Association forms the company’s constitution, defines the responsibilities of the directors, the kinds of business to be undertaken and the means by which the shareholders exert control over the board of directors.
Here is a single page Articles of Association available at SECP website link.
What are FORM 1, FORM 21 & FORM 29 means?
FORM 1: Declaration of compliance with the requirements of the Companies Ordinance, 1984
FORM 21: Notice of situation of registered office of the company
FORM 29: Particulars of Directors and Officers including the Chief Executive, Secretary etc.
All forms are available at SECP site link.
Note: When using eServices you only need to upload the above mentioned documents in PDF format.
Form 1, Form 21 & Form 29 are automatically generated from the details you enter in the Form of Incorporation.
This is where you fill out the details and upload the documents.
DIGITAL SIGNATURES by NIFT:
When you are incorporating your company through SECP eServices portal, the witness to your documents will be NIFT and you will need to obtain a digital certificate from NIFT for each director of the company in order to electronically sign all the documents including Memorandum, Articles and other forms. After getting Name Reservation Certificate from SECP, you will have to send the application to NIFT in order to obtain digital certificates.
Sign the documents using the eServices portal and proceed to the next steps.
STEP 5: CERTIFICATE OF INCORPORATION
You might receive an email if an objection arises. Make the required correction and submit the concerned form again through eServices Portal. SECP will take about seven working days to complete the process if there is no objection and you will receive a confirmation email regarding successful incorporation of your company including the incorporation number.
You can pick up the Incorporation Certificate from the concerned Company Registration Office (CRO) by showing a copy of the payment receipt or it will be delivered to your registered address after seven working days.