Karachi situated in province Sindh is recognized to be the business hub of Pakistan with population of surpassing over 23 million, which puts it the 7th largest urban city in the world. Karachi generates about 25% of the National Gross Domestic Product (GDP) that entitled the city as the economic and financial center of Pakistan.
The recent development in Karachi has opened doors of business opportunities in the city which attract local and foreign investment. The industrial economy is booming so this is the high time for business investment in Karachi.
Taxocrate takes pride to help and guide investors and new business owners regarding opening a new business and company registration, Pakistan.
Company registration is among the most preferred form of business in Karachi. Formation of company aids in business enhancement for Small Medium Enterprises (SMEs) as well as organizations having business at a larger scale.
The company registration is administered and regulated by The Companies Act 2017 and The Companies Incorporation Regulations 2017. The body responsible for the administration of the entire company registration and incorporation process is known as the Securities & Exchange Commission of Pakistan (SECP).
The Company registration and all over Pakistan can be of following types
Any three or more persons can form a public company by contributing their names to the Memorandum of Association and fulfilling the requirements of the Companies Act 2017. The public company can be listed or not listed on the Pakistan Stock Exchange.
Private Limited Company
private company is formed by one or more persons as per the requirements of the Companies Act 2017.
Single Member Company – SMC:
Single Member Company is also a form of Private Limited Company which can be formed by only one member. Hence it is called as SMC Private Limited.
STEP BY STEP INSTRUCTIONS TOWARDS COMPANY REGISTRATION IN PAKISTAN
Step 1- The Availability and Approval of Company Name:
The company registration is initiated with the approval of company name. The applicant will propose three names, out of which the registrar would approve one available name. This name will be mentioned in all the company documents. It seems to be a simple task, but there are certain guidelines which are to be followed while choosing the company name. Furthermore, referred to Section 10 of the Companies Act, 2017 and Regulation 4 of the Regulations, there are some restrictions and prohibitions imposed which the applicants have to take into consideration while choosing the name of their company.
Taxocrate provides you proper instruction while choosing your company name so that it gets approval with no hassle.
Step 2- Documents Required for Company Registration, Pakistan:
The next step towards company registration takes to the submission of required documents. The following documents are required for submission to SECP by the applicant in order for the company registration.
• Memorandum & Articles of Association
• CNIC copies of the company members
• The company profile, information about company directors (including their nationality), charter certified copy, memorandum & articles are required in case of the foreign company
• The documents filing authorization by the members
• Registration/filing fee: Original Bank Challan as an evidence that the company registration fee has been paid in MCB or UBL designated branches.
Taxocrate understands that this is one of the most important steps in getting company registration. We will submit all the required documents to SECP on your behalf and ensure that the critical process of document submission is undertaken carefully.
Step 3: Certificate of Incorporation
After completion of the above steps of company registration, a Certificate of Incorporation will be issued to the business owner.
Step 4: Start your Business in Karachi
The private limited company or single member company (SMC) can start its operation after receiving the Certificate of Incorporation by SECP.
However, for the public company, the CEO or one of the company directors is required to file a duly verified declaration as mentioned in the Companies Regulations, 2017 along with the conditions highlighted in Section 19(1) of the Companies Act 2017, and it has to be accepted by the registrar. After the successful completion of this process, the public company can start its functions.
THE COMPANIES ACT 2017
The company registration is administered by Security and Exchange Commission of Pakistan (SECP) through The Companies Act, 2017 which was legislated on 30th May 2017. Prior to the introduction of the Companies Act 2017, the company registration was done under the Companies Ordinance 1984.
The Companies Act 2017 is passed to restructure the company registration and operation laws in Pakistan. The Act will provide ease to company registration procedure and facilitate the corporations and other types of businesses to operate with ease and convenience. This initiative will open doors of new investment opportunities and encourage investors to make investments in new businesses that would eventually lead to the economic development of the country and provide new employment opportunities to the citizens.
Moreover, The Companies Act 2017 is introduced with a purpose to regulate and monitor the companies and safeguard the interests of investors, shareholders and other stakeholders. Additionally, the new Act will help in resolving corporate disputes.
The new Act gives more ease to the corporate entities to practice their affairs conveniently. Also, the process of companies mergers and acquisition and companies’ de-registration is aimed to make simplified.
New Responsibilities are given to SECP:
The new responsibilities are given to SECP through The Companies Act 2017 which include: regulation of the Islamic banking and Sharia sector, monitoring and regulating the real estate and authenticating the acquisition and mergers of companies.
Regulations for Islamic Banking:
In addition to the above regulations, the new Act also gives power to SECP to monitor and regulate the growing Islamic banking and Sharia sector in Pakistan. As per the Companies Act 2017, every company which practices Islamic banking shall be following the new regulations set by SECP.
Company Officials to Check Money Laundering:
The company’s higher authorities will be held responsible to keep an eye on illegal activities like money-laundering, according to the Companies Act 2017.
The Regulation for Real Estate Sector:
The SECP will be monitoring and regulating the booming real estate sector in Pakistan. The new Act restricts real estate companies to take approval from SECP before announcing new schemes.
Female director in the company made mandatory:
According to the Companies Act 2017, the big companies will be having at least one female director on the company’s board. This regulation is introduced for the first time in the country.
Regulations for Pakistanis living abroad:
The new Act also applies to the Pakistanis having dual nationality or who are living abroad. Any person having Pakistani passport, living anywhere in the world who owns the shares of any local or foreign company, must submit a shares report to the authorities.
HOW TAXOCRATE WILL HELP YOU IN COMPANY REGISTRATION IN KARACHI, PAKISTAN:
It seems the company registration in Karachi, Pakistan is quite lengthy and complicated. Therefore, Taxocrate offers individuals and multiple business owners, the best legal services of company registration in Karachi. You just have to call us to discuss your custom business needs and we will provide the custom tailored solution as per your requirements. Moreover, we will not only guide and explain to you the entire company registration but also take the responsibility to do all the work required and keep you calm and relax throughout the process.