How to Register a Company in Pakistan A complete 9 Step Guide?
User Registration
The first step is to visit the SECP website and create your User ID. It is mandatory for all owners or directors of the company to register themselves.
For this, it is necessary that the mobile number is registered with CNIC. The sign-up process can be completed by verifying the PIN or OTP that will be sent to the email and mobile during registration.
Proposed Names
After this, the second step is the Name Reservation,
There are only two ways to reserve a name:
Either first reserve the name and then apply for incorporation, or submit both a name reservation and an incorporation application at the same time.
If you only reserve the name, it remains safe for 60 days, for which a fee of Rs. 1,000 is charged and If the company is not registered within this period, this name is automatically deleted from the system and becomes available to other users.
If someone else gets the same name, you cannot use the same name again.
Instructions for choosing a name
You have to suggest three names while applying.
The system has an option to “Check Availability”, where similar or identical names are displayed. You have to provide a unique name which is not similar or identical to any existing company.
If the proposed name contains a non-dictionary word or non-word, then you have to provide meaning and significance of the name also.
How to Register a Company in Pakistan A complete 9 Step Guide?: Applicant Information
In this section, you have to provide details of the applicant’s personal information, such as CNIC, address, mobile, email etc.
Business Objects:
In this section, you need to select the sector, the main business type (principal line of business), and the objective clause. When you select a sector, the LEAP system automatically suggests a “principal line of business”, which you cannot manually change or add.
For example, if you select Sector: Corporate Agricultural Farming then the suggested Principal Line of Business are
Agricultural Farming
Corporate Agricultural Farming – Allied (Other)
Fish Farming
Livestock Farming
Poultry
Seed Processing
The system automatically suggests a business objective clause, but you can edit it if you want. You also have the option to add up to three additional objective clauses.
Company Information
Financial Year End
In the company information, you have to enter the date of your financial year end. Usually, this is entered by default 6/30 i.e 30th June, but you can also change it according to your needs such as December 31 or September 30.
Capital Structure
In the next step, you need to enter the Authorized and Paid-up Capital of the company.
Authorized Capital is calculated by Share Price and Number of Shares:
Share Price × Number of Shares = Authorized Share Capital
Example:
If the share price is Rs. 100 and the number of shares is 10,000, the authorized share capital will be Rs. 1,000,000.
Authorized Capital indicates the maximum number of shares that the company can issue. If you need to issue more shares than this limit, you will have to make a separate application to increase the authorized share capital.
Paid-up Capital
Refers to the shares that have been paid up by the subscribers.
For example, if subscribers have paid up 5,000 shares out of 10,000, the paid-up capital will be 50% of the authorized capital.
Company Address
After this, it is necessary to enter the Address of the company — that is, Correspondence Address and Registered Office Address.
If you initially provide a Correspondence address, you will have to file a registered office address within 30 days. For this, it is necessary to inform the SSP (SECP) through Form 21, otherwise a penalty may be imposed.
Detail of Stakeholders
Directors and Chief Executive:
Subscribers and directors are mandatory at the time of company registration.
Every director must be a subscriber, and one of them is appointed as the Chief Executive Officer (CEO).
A minimum of two directors are required for a Private Limited Company.
A Single Member Company (SMC) must have one director.
Article of Association(AOA) and Memorandum of Association(MOA)
SECP has provided a model AOA and MOA only the company name, address, nature of business and details of directors are changed. All other parts are same for all companies. However, in case of public limited companies, they can be modified. You do not need to upload AOA and MOA manually.
The last part of the memorandum, which contains the names of the initial subscribers and founder directors of the company, cannot be altered later. This part remains the same throughout the existence of the company.
Certified True Copy
If you require certified company documents, select the relevant option.
You will receive all these certified copies via email.
Third Party Information
If you wish to register with a third party, such as EOBI or a federal or provincial department, you can provide the relevant details.
Declaration
The final step in How to Register a Company in Pakistan A complete 9 Step Guide? is the declaration section, specify who is submitting this form whether the company’s designated intermediary or a director himself. In practice, most consultants who provide such services do this using the applicant’s user ID and password.
If an agent is doing this from his personal account, he must be registered as an intermediary with the SECP, so that he can provide his registration number as an intermediary.
Review and Apply PIN
The final step is to get approval from all of the directors, each user has a unique PIN which they will used to approve the process.
The purpose of this is to ensure that no one can nominate a director of the company or register the business in the name or identity of another without their approval.
After the approval of all directors, finally the applicant who initiated this process will be able to submit the application.
This process will be submitted only after the approval or verification of all directors is completed.
Summary:
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