Business entities in Pakistan

Limited liability company

    Pakistan business entity types and setup requirements

  • The Limited Liability Company is the most widely setup business entity due to the low share capital requirements and the simplicity of its corporate structure;
  • An LLC in Pakistan can also be referred to as private company (Pvt Ltd.). This entity has minimum paid up share capital requirements of US$1,000 and only requires 2 directors and 2 shareholders. This corporate structure is ideal because small businesses can engage in any type of activity with no restrictions.

Representative Office (Liaison Office)

A foreign person / entity can also register a liaison office in the country, provided that the foreign person / entity is entitled to conduct business under the national laws of the home country. Such an entity can only engage in limited activities such as research and advertising. A liaison office is not allowed to invoice Clients, import and export raw materials, and sign sales contracts with Pakistani Clients.

Branch Office

  • A branch office in Pakistan can be setup if the parent company has an existing contract with a Pakistan company or government body. Hence, a branch office can engage in business activities which involve invoicing and signing contracts, but only within the confines set by the parent company;
  • Branch offices may either be a stand-alone bureau in one of the designated Special Economic Zones (SEZs) in Pakistan or a company setup of a foreign manufacturing firm;

Joint stock company

JSCs are available, requiring a minimum of 3 and a maximum of 50 shareholders. A joint stock company can have a public subscription for shares and shareholders may freely dispose of their shares.

 LLCBranchRep Office
Total company set up costsUS$22,850US$30,850US$32,850
Subsequent annual costs (excl accounting and tax fee)US$5,100US$8,100US$8,100
How long to set the company up?9 weeks9 weeks9 weeks
How long to open company bank account?3 weeks3 weeks3 weeks
Issued share capital requiredNoNoNo
Types of business permittedNo restrictionNo restrictionOnly research
Allowed to sign sales contracts with Pakistan ClientsYesYesNo
Allowed to invoice Pakistan ClientsYesYesNo
Corporate tax payable in Pakistan35%35%None
Corporate bank accountMCBMCBMCB
Can rent office premises in PakistanYesYesYes
Allowed to import raw materials?YesYesNo
Allowed to export goods?YesYesNo
Can the entity hire expatriate staff in Pakistan?YesYesYes
Do you visit Pakistan for company incorporation?NoNoNo
Resident director required?NoNoNo
Resident shareholder required?NoNoNo
Minimum number of directors111
Minimum number of shareholders211
Pakistan resident company secretaryYesYesYes
Tax registration certificate requiredYesYesYes
Individual shareholders allowedYesYesYes
Corporate shareholders allowedYesYesYes
Corporate director(s) allowedNoNoNo
Public register of shareholders and directorsYesYesYes
How long to get work permit approved3 months3 months3 months
Statutory audit requiredYesYesYes
Annual tax return to be submittedYesYesYes
Access to Pakistan double tax treatiesYesYesYes
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Contact us

For additional information on our business setup services in Pakistan, please email us at Alternatively please contact our in-house country expert, Mr. Paavan Chhabra, directly:
client relationship officer - Paavan
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