HOW TO REGISTER A NEW FIRM???????

STEPS AND REQUIREMENTS!!!!

BOARD OF INVESTMENT SECP

The recent reduction in the number of days to

set up a business is significant and ranks the country among the best

in Asia in this regard.

SECP• Securities and Exchange Commission of

Pakistan established under the Pakistan Act 1997

• It was operational as a body Corporate on 1st January 1999.

• important functions of the SEC is registration of companies.

• This task has been entrusted to the Registration Department, Company Law Division which has its field offices known as Company Registration Offices (CROs).

Security Information Service for Businesses Overseas

(SISBO)

• Provide information on security and political risk which businesses may face when operating in particular markets overseas.

• Areas covered may include terrorism, crime and civil disturbance, local politics, local law enforcement arrangements, personal protection, bribery and corruption.

Types of Legal Forms for Doing Business

Sole Proprietorship Partnership Company• Types of companies A private limited company A single member company A public limited company A company limited by shares A company limited by guarantee An unlimited company

FORMING A COMPANY

The procedures involved in registering either a private or public company are relatively similarAny three or more persons can, by subscribing their names to the Memorandum of association and complying with the requirements of the Companies Ordinance form a public company.Any one or more persons so associated may, in the same way, form a private company.No government sanction is required for setting up any industry, in terms of field of activity and size

Prior approval of the ministries is required before incorporation of a company in:

Banking: Ministry of finance and State Bank of Pakistan

Insurance: Ministry of commerce Investment Finance: Ministry of

Finance and State Bank of Pakistan venture Capital: Securities and

Exchange Commission of Pakistan Asset management: Securities and

Exchange Commission of Pakistan

The name

The first step in the incorporation of a company is to confirm the availability

of the name of the proposed company from the Company

Registration Office.

Memorandum of Association

An important step in the formation of a company is to prepare a document called Memorandum of Association. It is the charter of the company that contains the basic conditions on which the company is incorporated

Articles of Association

• These are the regulations that govern the internal management affairs of the company and the conduct of its business.

• The Articles are subordinate to the Memorandum of Association.

THINGS REQUIRED Four printed certified copies of the Memorandum of

association and Articles of Association. Address of the registered or principal office A list of Director, Chief Executive and Secretary of

the company Particulars of the principal officer of the company in

Pakistan Particulars of person(s) resident in Pakistan

authorized to accept Service on behalf of the foreign company OR in case of death

Address of principal place of business in Pakistan of the foreign company

Paid challan for the filing fee of each document deposited in the designated corporate branches of bank.

• Pakistani national identity card • Pakistani bank account number • National tax number (NTN) of

each of your business directors • Attestation of business address • Registration forms

Documents required for registration of a Single Member Company in Pakistan:

• Any person may form a single member company and would file with the registrar

• indicating at least two individuals to act as nominee director and alternate nominee director, of the company in the event of his death.

• All requirements for incorporation of a private limited company shall mutatis mutandis apply to a single member company.

Documents required for registration of an association not for profit in Pakistan

• All the documents meant for incorporation of a limited company along with a license issued by the SEC.

• In case of a trade body, a license issued by the Ministry of Commerce would also be submitted to the registrar concerned.

• The application for obtaining the requisite license from the Commission should be accompanied

• names of companies in which the promoters of the proposed association hold any office

SETTING BUSINESS/ REGISTER FIRM• Visit the Securities and Exchange Commission of

Pakistan's (SECP) to file your company name online. • Pay the name and registration fees on the SECP

website through your bank account.• Register your company through the Registrar of

Companies• Obtain digital signature and proof of registration. It

will come through the SECP website from the National Institutional Facilitation Technologies (NIFT) two days after you register your company

• Register for income tax with your national tax number (NTN) on the SECP website.

• Register for sales tax.• Register for the Pakistani Professional

Tax with your local tax authority• Register with the Employee Social

Security Institution (ESSI).• Register for old age benefits with the

Pakistani Employees Old-Age Benefits Institution (EOBI)

• Register with the Pakistan Shops and Establishment Ordinance

EFFECTS OF NON REGISTRATION

• The firm cannot sue the third party.

• The firm cannot claim set off.

• Third party can sue the firm.

• Partners cannot sue the firm.