Proprietorship Registration in Pakistan:
One of the business types in Pakistan is proprietorship, also known as sole proprietorship. The sole proprietorship is one of the most common types of business, which is run and managed by only one individual. Establishing a business as a sole proprietor requires a NTN (National Tax Number). Therefore, a sole proprietorship cannot be referred to as a company, rather it is just an individual’s NTN showing business name and activity. Business owners are solely responsible for the profits and losses of the business; there is no separate legal entity. They are also responsible for the business’s debts and liabilities. Business decisions are entirely at the owner’s discretion. Business taxes are paid by the owner of the business through their personal tax returns. The marginal tax rate for sole proprietors is lower.
A sole proprietorship can be registered online with the Federal Board of Revenue (FBR). The process of forming a sole proprietorship is straightforward. For a sole proprietorship, you must submit a specific business name. As part of the NTN registration, be sure to select your business activity. You can register a sole proprietorship the same day. Your NTN will appear online within 24 hours. You can register your NTN online for free, there is no charge for this.
Advantages of Sole Proprietorship:
- Upon registration with FBR, a sole proprietorship becomes a legal entity.
- NTN offers the convenience of opening a business bank account
- A sole proprietorship is not subject to additional taxes
- It becomes easier to file your annual tax return
Required documents for Sole Proprietorship Registration:
- Business name & activity
- Copy of NIC
- Recent electricity or gas paid bills
- Lease deed of the premises
How TAXOCRATE can help you register your proprietorship?
Taxocrate (Pvt) Limited can help you register your sole proprietorship in Pakistan. We have more than 30 years of experience providing corporate services such as Company Registration, Firm Registration, Proprietorship Registration, Trademark Registration, Income and Sales Tax Returns, and NTN Registration. For further queries regarding the above-mentioned matters, please leave a message in the comment box given below. For personalized consultation and guidance call us by dialing 0331-6644789. You can send us an email with your queries and questions at [email protected].
Provincial Tax Authorities
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