Success tips when doing business in Pakistan
- Because Pakistan companies are not as well-versed with international business and Western law practices, we encourage our Clients to consistently use and sign contracts of service when doing business in Pakistan;
- Following business incorporation, hiring reliable and experienced workers that speak fluent English is difficult, especially with governmental restrictions on the number of foreigners allowed to work in companies. To support Pakistan company formation, Healy Consultants assists our Clients in its Human Resource needs by placing advertisements in the major newspapers like the Khalk Suzi and Times of Central Asia;
- As Islam is the predominant religion in the country, the holy month of Ramadan is observed, with fasting practiced by nearly all Pakistanis. Foreigners are not expected to fast, though they are expected to not eat, drink, smoke or chew gum in public. Be prepared for many businesses to be closed or for normal operations to slow down for several days;
- It is important to find out what registrations and licenses apply to your firm. This can be a complex area, as local, state, territory and federal governments handle registration and licensing for various aspects of your business;
- Islam culture is also pervasive in other ways. The call to prayer is heard 5 times a day and nearly all citizens will stop to pray during these times. Also, free mixing of genders only occurs within the family. Women are expected to dress conservatively and to avoid making eye contact with men, while men should not initiate social conversations with women that are not their wives. Men and women should never touch each other under any circumstances;
- Foreign investors interested in incorporating in Pakistan should be aware of the Sharia law practices as legal system is influenced by the Sharia court;
- During business meetings, Pakistanis spend a lot of time discussing things in general and then once they are comfortable, they will talk business with you. Expecting them to directly come to the point and discuss business is seen as rude and must be avoided;
- If invited to a Pakistani home, you should always accept and take every opportunity to become acquainted with local people. Your host will be generous and interested in you. However, you should avoid debating politics and religion as your opinions might be regarded as ill-informed or even offensive, even if they seem acceptable to you from a western perspective;
- Pakistan is an Islamic state and follows the Islamic culture. It is important for foreign companies to respect this and make themselves aware of the Islamic traditions in doing business;
- Foreign entrepreneurs interested in incorporating a business in Pakistan need to be aware of how they must treat women in the workplace. Examples include:
- Not all Pakistani women are comfortable shaking hands with foreign men. You need to wait for the woman to put her hand out first before putting forth your own hand;
- Also it is not acceptable to touch a woman even in a friendly manner on the shoulder or other places at any time in the office;
- It is common for men and women to sit at different areas of the office. What this means is that you need to designate part of your office where all the men would sit and another part of your office where the women would sit.
- An essential factor in Pakistan company incorporation is to thoroughly research the business sector you are planning to invest in. Healy Consultants recommends our Client prepare a detailed business plan prior to Pakistan company formation including an extensive market study and evaluation of competitors.
Interesting facts about Pakistan?
- The Pakistan army is the sixth largest military force in the world;
- The world’s second highest mountain K2 is located in Pakistan;
- Gawadar, the world’s largest deep sea port is in Pakistan;
- With 96% of the population being Muslim, Pakistan has the second largest Muslim population in the world;
- About one fifth of the population live below the poverty line of US$1.25 per day;
- About 1.7million refugees from Afghanistan live in Pakistan;
- Pakistan has the 6th largest population in the world at 177 million people;
- Pakistan is the first Islamic country to attain nuclear power;
- Doing Business in Pakistan is ranked 138 out of 189 in the 2016 Ease of Doing Business Survey ranking;
- Approximately 30% of the foreign investments in Pakistan are in the telecommunications industry.
Frequently asked questions
How many directors are required for starting a business in Pakistan?Only 2 directors are required when registering a company in Pakistan.
How many shareholders are required for registering a company in Pakistan?2 shareholders are mandated for business registration in Pakistan.
Is it mandatory to have a resident director or shareholder for Company Registration in Pakistan?No. It is not mandatory to appoint a resident director or have resident shareholders to do business in Pakistan.
How to register a business in Pakistan?For business registration, our Client will be required to i) reserve the company name ii) supply the Pakistan office lease agreement iii) sign the company setup forms iv) register for tax and social security and v) obtain a business license.
Healy Consultants’ experts are Pakistan company registration specialists and will assist our Clients at every step.
Can Healy Consultants assist my firm with Pakistan subsidiary company registration?Yes. Our Pakistan company registration services include i) business registration ii) business license registration iii) immigration solutions iv) employment strategies v) business banking solutions and vi) office rental requirements.
Is a company secretary required for Pakistan business incorporation?Yes. It is mandatory to appoint a resident secretary when you incorporate a Pakistan company. Healy Consultants will provide our Clients this service for US$1,800.
What are the minimum capital requirements when incorporating a company in Pakistan?A company in Pakistan must have at least US$1,000 of initial startup capital when incorporating in Pakistan.
What Pakistan company incorporation services can Healy Consultants offer my firm?As Pakistan incorporation service providers, Healy Consultants will assist our Clients with i) company registration ii) business license registration iii) immigration solutions iv) employment strategies v) business banking solutions and vi) office rental requirements.
Our experts are Pakistan company incorporation specialists and will send our Clients weekly updates till engagement completion.
What will be the Pakistan incorporation timeline?The Pakistan company incorporation process takes 10 weeks to complete, with the overall business setup process taking 20 weeks.
Are there any business restrictions for foreigners when incorporating in Pakistan?No. Foreigners incorporating in Pakistan face no restrictions as to the type of business activity they can perform.
Will details of my Pakistan business formation be available for public viewing?Yes. In order to start a Pakistan company, an entrepreneur must enter the business details in the public register.
I am looking for professional Pakistan company formation services. Can your firm help me?Yes. Over a decade, Healy Consultants has been assisting our Clients with company incorporation services in Pakistan.
How to open a company in Pakistan?For company formation and business establishment in Pakistan, Healy Consultants will prepare the appropriate documentation and notarize them. We will also assist the Client with opening their corporate bank account in Pakistan.
What are the pre-requisites for opening a company in Pakistan?In order to form a Pakistan company, our Client will need to i) reserve the company name ii) supply the Pakistan office lease agreement iii) sign the company setup forms iv) register for tax and social security and v) obtain a business license.
Our firm’s experts are Pakistan company formation specialists and will assist our Clients with every step.
Will there be restrictions in ownership if foreigners setup a Pakistan company?No. 100% foreign ownership is allowed if you wish to setup your business in Pakistan.
Will I be required to get a full audit if I setup a small business in Pakistan?Yes. If you setup a business in Pakistan, you will be required to submit audited financial statements to the Government.
What are the tax implications for a business setup in Pakistan?Starting a business in Pakistan requires entrepreneurs to pay corporate tax at 35%.
How can foreigners setup a company in Pakistan?Pakistan company setup requirements include i) reservation of business name ii) preparation of incorporation documents iii) notarization of the documents and iv) tax and business license registration.