Company registration in Pakistan is not optional—it’s the foundation of every legitimate business. Whether you’re a freelancer scaling up, a startup founder, or entering a partnership, understanding how to register a company with SECP can save you from costly mistakes and legal nightmares.
This guide covers everything about company registration: when you need it, how much it costs, the exact process, and common mistakes that could cost you lakhs.
Why Company Registration Matters: The Rs. 15 Lakh Lesson
Bilal and two friends built an online platform connecting artisans with international buyers. After six months of hard work, they secured their first order: $12,000 from a UK buyer.
At the bank, reality hit hard.
“What’s your company’s name?” the manager asked.
“We don’t have a company.”
“Then I can’t release this payment. International transactions require company registration.”
The $12,000 went back. The client moved on. Total loss: Rs. 15 lakh+ in revenue and six months of wasted effort.
All because they didn’t understand company registration in Pakistan.
What Is SECP Company Registration?
SECP (Securities and Exchange Commission of Pakistan) is the government body that registers and regulates all companies in Pakistan.
Company registration with SECP gives your business:
- Legal identity separate from you personally
- Ability to open business bank accounts
- Protection of personal assets (limited liability)
- Credibility with clients and investors
- Legal standing to sign contracts
- Capacity to hire employees formally
- Access to business loans and investment
Running without company registration is like driving without a license—risky and legally problematic.
When Do You Need Company Registration?
You MUST Register a Company If:
1. You’re Partnering With Anyone
Verbal agreements mean nothing in court. Without proper company registration, ownership disputes become nightmares.
Real case: Rashid and Imran ran a clothing brand as “partners” without registration. After two years making Rs. 20 lakh/month, they disagreed. The business was in Rashid’s name only. Imran legally owned nothing. Rs. 8 lakh in legal fees later, both lost everything.
2. Raising Investment
No investor puts money into unregistered entities. Company registration creates proper shareholding structures and legal protection.
3. Doing International Business
Banks won’t process foreign payments without company registration documents. Foreign clients want contracts with legal entities, not individuals.
4. Hiring Employees
Employment contracts, EOBI, and social security require registered companies. You can’t legally hire under your personal name.
5. Signing Large Contracts (Rs. 5 Lakh+)
Corporate clients prefer registered companies. Legal recourse is clearer with incorporated entities.
6. Protecting Personal Assets
Without company registration, if your business gets sued, they can take your house, car, and personal savings. Company registration creates limited liability protection.
The Three Types of Companies in Pakistan (Which One Do You Need?)
SECP offers different types of registrations. Most people get confused here. Let me simplify:
1. Private Limited Company (Pvt Ltd)
Best for: Most startups, small to medium businesses, partnerships
How it works:
- Minimum 2 people required (directors/shareholders)
- Maximum 50 shareholders
- Shares cannot be sold publicly
- Limited liability (personal assets protected)
- Separate legal entity (company can sue and be sued, not you personally)
Examples:
- Tech startups
- Manufacturing businesses
- Trading companies
- Service businesses with partners
Why most people choose this: Balance of protection, flexibility, and simplicity.
2. Single Member Company (SMC)
Best for: Solo entrepreneurs who want limited liability protection
How it works:
- Only 1 person required (you)
- You’re the sole director and shareholder
- Still get limited liability protection
- Separate legal entity
- Can later convert to Pvt Ltd when you add partners
Examples:
- Solo consultants
- Freelancers going corporate
- Individual professionals (doctors, lawyers opening their practice)
Why people choose this: You get company benefits without needing a partner.
3. Public Limited Company (Ltd)
Best for: Large businesses planning to go public or raise massive capital
How it works:
- Minimum 3 directors, 3 shareholders
- Can sell shares to the public
- Can list on Pakistan Stock Exchange
- More compliance requirements
- Higher registration and annual costs
Examples:
- Companies planning IPOs
- Large-scale manufacturing
- Businesses needing public investment
Why most startups DON’T choose this: Overkill for 99% of new businesses. Too expensive, too complicated.
4. Limited Liability Partnership (LLP)
Best for: Professional service firms (lawyers, accountants, consultants)
How it works:
- Hybrid between a partnership and a company
- Partners have limited liability
- Flexible management structure
- Less compliance than Pvt Ltd
Examples:
- Law firms
- Accounting firms
- Consulting partnerships
Note: Less common than Pvt Ltd. Most people still prefer Pvt Ltd even for professional services.
What 90% of People Should Choose:
If you’re reading this article, you probably need a Private Limited Company (Pvt Ltd) or a Single Member Company (SMC).
- Starting alone? → SMC
- Have a partner/co-founder? → Pvt Ltd
- Planning to raise investment later? → Pvt Ltd
That’s it. Don’t overthink it.
What You Actually Need to Register (The Real List)
Forget the complicated checklists you’ve seen online. Here’s what you actually need:
For All Directors/Shareholders:
1. CNIC (Computerized National Identity Card)
- Original + copy
- Must be valid (not expired)
2. Passport-sized photographs
- 2 photos per person
- Recent photo
3. NTN (National Tax Number)
- If you don’t have one, get it first (takes 15 minutes online)
- Yes, even for company registration
4. Utility bill (electricity, gas, internet)
- For the registered office address
- Must be recent (within the last 3 months)
- Can be in any director’s or shareholder’s name
For the Company:
5. Company name (your choice)
- Must be unique (no one else is using it)
- Must not be offensive or illegal
- Can’t use restricted words like “Bank,” “Insurance,” “Government” without permission
6. Registered office address
- Can be your home address
- Can be a virtual office
- Must be a physical location in Pakistan (no P.O. Box)
7. Business activity description
- What will the company do?
- “Trading,” “Services,” “Manufacturing,” “IT Services,” etc.
8. Share capital amount
- How much money will the company have?
- Minimum: Rs. 10,000 (for Pvt Ltd)
- Most startups use Rs. 100,000 to Rs. 1 million
- This is NOT the money you need to pay now—it’s just a number on paper
That’s literally it.
No complicated documents. No property papers. No bank statements (at this stage).
Total documents needed: CNIC + NTN + 2 photos + utility bill + company name idea
The Step-by-Step Registration Process (Exactly How It Happens)
Let me walk you through the real process—not the theoretical one.
Step 1: Check Company Name Availability
Before you fall in love with a name, check if it’s available.
Go to: SECP’s e-Services portal at https://www.secp.gov.pk
Click: “Name Availability”
Search: Your desired company name
Examples:
- “TechVista Private Limited” ✅ Available
- “Google Pakistan Private Limited” ❌ Restricted
Pro tip: Have 3-4 backup names ready. Your first choice might be taken.
What makes a good company name?
- Easy to spell and pronounce
- Relevant to your business
- Not too similar to existing big companies
- Sounds professional
Step 2: Reserve Your Company Name
Found an available name? Reserve it immediately from SECP eServices portal.
On SECP e-Services portal:
- Click “Name Reservation”
- Fill in proposed name
- Describe business activity
- Pay reservation fee
Within 24-48 hours: SECP approves or rejects.
If approved: Name is reserved for you for 60 days. You must complete registration within this period.
If rejected: They’ll tell you why (usually “too similar to existing company” or “contains restricted words”). Try another name.
Step 3: Prepare Incorporation Documents
Now you need to prepare the legal documents:
A. Memorandum of Association (MOA)
- States the company’s objectives
- What business activities can the company do
- This is a template—SECP provides standard formats
B. Articles of Association (AOA)
- Internal rules of how the company will operate
- How meetings will happen
- How decisions will be made
- Again, templates are available
C. Form 1 (Declaration of Compliance)
- Legal declaration that everything is in order
- Signed by all directors
D. Form 21 (Notice of Registered Office)
- Where is the company’s office?
- Include the utility bill as proof
E. Form 29 (List of Directors)
- Names, CNICs, and addresses of all directors
Step 4: Submit Documents to SECP
Everything happens online now. No need to visit SECP office.
On SECP e-Services:
- Click “Incorporation of Company”
- Fill the forms
- Upload all prepared documents
- Pay the incorporation fee
- Submit application
SECP processing time: 2-5 working days (usually 2-3 days if documents are correct)
Step 5: SECP Review & Approval
SECP officers review your application.
They check:
- Documents are complete
- Name is still available
- MOA/AOA follows legal requirements
- Directors have valid CNICs and NTNs
- No red flags
Three possible outcomes:
1. Approved ✅ You receive:
- Certificate of Incorporation (official birth certificate of your company)
- Company registration number
- Digital copy via email
- Physical copy via courier (if requested)
Congratulations! Your company officially exists.
2. Objections Raised ⚠️ SECP asks for clarification or additional documents.
Common objections:
- “The utility bill is too old”
- “CNIC copy is unclear”
- “Business activity description is vague”
You fix the issues and resubmit (usually resolved in 1-2 days).
3. Rejected ❌ (Rare, only if major issues)
- Name suddenly became unavailable
- Directors have legal issues
- Documents are fundamentally wrong
You start over with corrections.
Step 6: Get Your NTN Updated
Your company now exists, but it needs a tax identity. SECP has integrated with FBR for this purpose.
Go to: FBR Iris Portal (https://iris.fbr.gov.pk)
Register the company for NTN:
- Select “Company/AOP” (not Individual)
- Enter company details
- Upload Certificate of Incorporation
- Submit
Within 24 hours: Company gets its own NTN (separate from your personal NTN).
This NTN is crucial for:
- Opening a company bank account
- Filing company tax returns
- Issuing invoices
Step 7: Open a Company Bank Account (1-2 weeks)
Now your company needs its own bank account.
Visit any bank with these documents:
- Certificate of Incorporation
- MOA and AOA
- Form 29 (list of directors)
- CNICs of all directors
- Company NTN certificate
- Board resolution (authorising account opening—bank provides template)
Bank processing time: 5-10 working days
Choose your bank wisely:
- UBL, MCB, Allied—most business-friendly
- Meezan, Dubai Islamic—if you prefer Islamic banking
- Compare business account fees (some charge monthly, some don’t)
Once the account is open, deposit your initial share capital (even if it’s just Rs. 10,000 to activate the account).
Step 8: Post-Incorporation Essentials (First Week)
Congratulations, you have a registered company! But you’re not done yet.
Within the first 7-30 days, you must:
A. Hold your first Board Meeting
- Directors meet (even if it’s just you and your co-founder over chai)
- Decide company matters: who’s CEO, who handles finances, etc.
- Record minutes (written notes of the meeting)
B. Issue Share Certificates
- Physical or digital certificates showing who owns how many shares
- These prove ownership (crucial if you ever sell shares or bring investors)
C. Design company seal (optional but professional)
- Rubber stamp with company name
- Used on official documents
- Costs Rs. 500-1,500 from any stamp maker
D. Register with other authorities (if applicable):
- Sales Tax registration, if required
- EOBI (Employees’ Old-Age Benefits Institution) – if you have employees
- PESSI (Punjab Employees Social Security Institution) – if in Punjab with employees
- Labour Department – if you have 10+ employees
Most startups don’t need these immediately. Register as you grow.
Quick FAQs (The Questions Everyone Asks)
Q: Can I register a company if I’m employed full-time?
A: Yes. You can be a full-time employee somewhere AND own a company. There’s no law against it.
But: Check your employment contract. Some companies have “non-compete” clauses that restrict you from running similar businesses.
Q: Can I use a fake address for registration?
A: Technically, yes, but a terrible idea.
All official notices go to that address. If SECP can’t reach you, your company becomes non-compliant.
Use a real address where you can receive mail. Virtual offices work too (Rs. 3,000-8,000/month).
Q: What if my partner and I later disagree on everything?
A: This is why Shareholders’ Agreements exist.
Without one, you’re stuck. Dissolution is painful and expensive.
With one, you have pre-agreed rules: mediation, buyout clauses, and dispute resolution.
Q: Can I change my company name later?
A: Yes, but it’s a hassle.
You need to:
- Get approval from all shareholders
- Check name availability again
- File an application with SECP
- Pay fees (Rs. 15,000+)
- Update everywhere (bank, FBR, website, contracts)
Choose wisely from the start.
Q: My company isn’t making money yet. Do I still need to file annual returns?
A: Yes. Compliance isn’t based on profit. Even loss-making companies must file.
Think of it like this: Your CNIC exists whether you have money or not. Same with your company registration.
Q: What if I want to close the company?
A: You can dissolve it, but:
- Must file all pending returns
- Pay all outstanding taxes
- Clear all debts
- Get approval from SECP
- Publish notice in newspapers
Easier to keep it dormant (file nil returns annually) if you think you might revive it later.
Q: Can foreigners register companies in Pakistan?
A: Yes, through the Board of Investment (BOI).
Process is similar but requires:
- Valid passport
- Pakistani partner OR 100% foreign ownership approval
- BOI clearance
Final Thoughts: The Real Reason to Register (Beyond Legal Compliance)
Registering a company forces you to take yourself seriously. When you’re “just freelancing” or “just running a side hustle,” it’s easy to be casual. Miss a deadline? Whatever. Client complains? Deal with it later.
But when you have a registered company:
✅ You start thinking long-term
✅ You make professional decisions
✅ You respect contracts and commitments
✅ You build systems, not hustle
✅ You become someone serious people want to work with
It’s not just about legal protection or tax benefits.
It’s about identity.
Are you “just trying something” or are you building a real business?
Remember Bilal from the beginning?
After losing that $12,000 opportunity, he registered his company properly.
It took him 7 days with a consultant. Cost him Rs. 35,000.
Within 3 months:
- He signed contracts with 4 international buyers
- Opened a business bank account for smooth payments
- Hired 2 employees legally
- Got a Rs. 15 lakh business loan (only possible with company documents)
Today, his company generates Rs. 70 lakh/year in revenue.
Legal Disclaimer:
Company registration requirements, fees, and procedures are subject to change. This guide reflects the process as of January 2026 based on current SECP regulations.
This article provides general guidance and does not constitute legal advice for specific situations. For complex cases involving multiple shareholders, foreign investment, special licenses, or disputes, please consult a qualified corporate lawyer or chartered company secretary.
SECP processes and fees may vary based on company type, capital amount, and specific circumstances. Always verify current requirements on the official SECP website.
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