Pursuant to the Companies Ordinance 1984, articles 198 – 205, a CEO is to be appointed within 15 days of the company’s incorporation. The company needs to register said CEO within 14 days of the decision.
Pakistan Shops and Establishment Ordinance 1969 requires every establishment other than a one man shop to be registered with the Deputy Chief Inspector of the Labor Department in each district. This is to safeguard the labor standards of the workers.
To register, the employer must submit the application Form A accompanied by a bank challan. The application for a new establishment shall be made within 2 months of setting up the establishment. The registration fees have been changed to the following pursuant to the Punjab Shops and Establishments (Amendment) Act 2014 (II of 2014):
Rs. 200 in the case of an establishment employing 1 to 5 workers.
Rs. 300 in the case of an establishment employing 6 to 10 workers.
Rs. 500 in the case of an establishment employing 11 to 20 workers.
Rs. 1000 in the case of an establishment employing more than 20 workers.
Once the payment is settled, the Deputy Chief Inspection lists the establishment in the Register of Establishments maintained in Form B and issues a registration certificate in Form C. The registration certificate shall be prominently displayed by the employer at the establishment, and shall be renewed after every two years upon payment of fees.
According to the Amendment in EOBI Act 1976 effective as of July 2008, every industry or a commercial establishment with 5 or more employees must register with the federal Employees Old Age Benefits Institution. Under the Employees Old Age Benefit Scheme, insured persons are entitled to pension upon retirement, invalidity in the case of a disability, old-age grant in the case of a retiring elder lacking the minimum threshold for pension, and survivor’s pension. A contribution of 5% of minimum wage must be paid by the employer and 1% of minimum wage must be paid by the employee.
An employer shall before expiration of thirty days from the day on which the Act becomes applicable to the industry or establishment in respect of which he/she is the employer, communicate to the Institution the name and particulars of the industry or establishment in Form PR-01 and of every insured person employed therein in Form PE-01 and, in the case of Form PE-01, give the receipt appended to the Form to the insured persons. An insured person may also communicate his/her name and other particulars to the Institution in Form PE-02.
Upon receipt of the requisite particulars in Forms PR-01 and PE-01 from an employer, the Institution shall register the name of the industry or establishment in respect of which he/she is the employer and of the insured person and issue to the employer a Certificate of Registration in Form PI-02 and to each insured person a Registration Card in Form PI-03.
The institution may send the Registration Card in Form PI-03 to the employer for delivery to the insured person to whom it relates.
The minimum Pension has been increased from PKR 3,600 per month to PKR 5,250 per month.
Registration with the Sindh Employees Social Security Institution is governed at the provincial level by an independent institution called the Sindh ESSI.
Following the Devolution Plan 2001, professional tax is enforced at the district level by the Excise and Taxation Department of the relevant provincial district. The tax is levied upon businesses, professionals, trades, callings or companies employing such professionals. The responsible district Excise and Taxation Officer (ET officer) is empowered to enroll in survey register every person who carries on any such business or profession and thereafter, give notice to such enrolled person. In case of a new business, the company is required to make a request to the ET officer to get enrolled by submitting a simple assessment form. The ET officer issues a registration number that acts as the reference number for the registered company and is noted down on every Bank Challan when assessments are paid into the Bank.
According to the Sections 14, 15 and 16 of the Sales Tax Act 1990 and Sales Tax Rules 2006, the company must register for sales tax by submitting the application Form STR-1 at any tax facilitation counter at the nearest Regional Tax Office (RTO). The local RTO forwards all applications to the Central Registration Office. After verification, the CRO issues a Registration Certificate bearing the registration number and mails the same to the registered company, on a prescribed From STR-5.
The Sales Tax General Order No. 4/2007 introduced electronic filing of the sales tax returns; and as of July 1st 2008, electronic filing was made mandatory for all categories of taxpayers.
To apply, the company must submit a simple one page form called the NTN Form as well as a proof of registration, the Memorandum and Articles of Association, bank account number, copies of the national identity cards of its directors, and an attestation of the registered business address at the nearest tax facilitation counter of the Regional Tax Office in Pakistan.
All applications are forwarded to the Central Registration Office (CRO) in Islamabad that allocates a uniform NTN number to each company. The center processes the application and issues the NTN at no charge. The certificate is then sent to the registered address of the applicant. The company can track the application online or through the RTO helpline. If undelivered, the NTN certification can be collected from the specified office at the Central Board of Revenue. Recently, the Federal Board of Revenue launched electronic services enabling online applications for NTN numbers to be made through its website: www.fbr.gov.pk.
A bank account number in the name of the company is needed in order to register for taxes. A copy of the registration certificate is needed in order to open a bank account.
Registration can either be completed online or in person at SECP. The following documents are required for submission:
a. Form 1: Declaration of compliance
b. Form 21: Identification of the location of the office
c. Form 29: Particulars of directors, secretary, chief accountant, auditors, and others
d. One copy of the Memorandum and Articles of Associations with the signature of each member (in presence of a witness)
The fees for incorporation of a company was updated on May 24, 2016 according to the S.R.O 448. The fees depend on the authorized capital as:
– Online submission: PKR 1,000 for registration of a company whose nominal share capital does not exceed PKR 100,000 and an additional fee of PKR 500 for every PKR 100,000 of nominal share capital or part thereof, up to PKR 10,000,000. The online filing fee is PKR 400 per document.
A confirmation of the online or physical submission is received instantly, and the actual certificate a few days later via email or courier. The entrepreneur can register with any Company Registration Office, irrespective of the jurisdiction. All regional SECP offices are computerized. In February 2012, SECP launched the Fast Track Registration Services (FTRS), under which the incorporation of a company can take place within 4 hours for an expedited fee of PKR 20,000 for on-site incorporation and PKR 10,000 for online incorporation payable in addition to the normal fees above. To register a company online, the entrepreneur must first obtain a digital signature through the National Institutional Facilitation Technologies (NIFT) system. If the application is received with less than four hours remaining in the working day, the same shall be disposed of in the next working day.
As of April 2017, SEC has allowed for the registration for company incorporation to be submitted through inputting the PIN number instead of the digital certificate. As such, companies now just need to input the following information into the system his/her 13 digit CNIC Number /NICOP /POC without dashes. The user will also enter his/her personal details i.e. Full Name, Father’s/Spouse Name, Gender, Date of Birth, Current Address, Permanent Address, Mobile Number, Email Address. The user will then enter his/her proposed password. In next section, the user is required to select three security Questions and then provide answer to those questions. The user will then click the Signup button to proceed further. After verification, the system will send security code to User on his/her provided Mobile Number and also on his/her email address. Upon submission, the system will send PIN to User on the provided Mobile No. through SMS and also on the provided Email Address. This system generated PIN will be required for company incorporation.
The company must pay the name reservation and incorporation fees at the designated MCB Bank (formerly Muslim Commercial Bank) or at the United Bank Limited. The form indicating the amount due is obtained from SECP either online (downloaded) or on-site, or from the bank.
The SECP launched online payment facility for its stakeholders in April 2014, therefore, online filing and payment is now possible for SECP’s online filers, without visiting the Bank or the SECP offices.
The entrepreneur can check the availability of the desired company name via the website of the Securities and Exchange Commission of Pakistan (SECP).
To reserve a company name, the applicant proposes one or more names in order of preference, and submits the application form to SECP either online or in person. The official confirmation (or rejection) of the chosen name and its availability is received by email or via courier upon payment of the name reservation fee of PKR 200 (online name reservation) or PKR 500 (offline name reservation) at the SECP-designated bank. The approved name is reserved for 90 days, during which the company must be incorporated.
SECP recently introduced the Fast Track Registration Services (FTRS), processing the company name reservation applications within 4 hours of submission for an expedited fee of PKR 500 online and PKR 1,000 in person payable in addition to the normal fees.