HOW TO REGISTER A COMPANY IN KARACHI ?
It’s a known fact that the city of Karachi is the business hub of Pakistan that generates around 70% of its revenue. The former capital generates a lot of economic activity and captivates millions of workforce from other cities. We understand that the most of country’s business activities take place here. But, the people of Karachi are robbed of basic knowledge. At Spectrum, we’re delighted to assist the people with guidance and helping with their process of company registration in Karachi. We understand that in Pakistan legal matters can be confusing and many culprits take advantage of this. But, here at Spectrum, we believe that transparency is everything and that’s why we try to educate and keep our clients updated with all the company registration processes.
COMPANY REGISTRATION PROCESS: IS IT DIFFICULT TO UNDERSTAND ?
Well, let’s not label it “difficult” but it can be a time-consuming task for sure. This is the reason why business owners tend to take help from professionals. Plus, the company registration service providers are experienced and you won’t need to spend your time in the process. However, there’s a con that those service providers can be too expensive. But, we have sorted out the problem for you. The solution is to contact Spectrum Consultancy where we have experience of many years combined with affordable cost and reliable services. You’ll be satisfied with what we deliver. Plus, you can get in touch with us if you think you need consultation, and that too for free! Contact now for a free consultation. While it’s true that you can take company registration services from professionals, you need to be aware of the process. You’ll find many impostors in the market who will try to take advantage of your lack of knowledge. So, you must have all the details in your hands. At the end of this article, the process of company registration will become transparent to you.
THE COMPANIES ACT 2017
The act is a detailed topic itself which we will explain in our later guides. To summarize, this act revoked the companies ordinance 1984. It took around 12 years the making this act. 515 sections, 8 schedules along with several changes to the company law were introduced. The act is committed to maximum use of electronic forms of communication.
THERE ARE TWO TYPES OF COMPANIES REGISTERED IN PAKISTAN
Private Limited Company:
A private limited company is the most professional class in the business industry of Pakistan. Many people in Pakistan are willing to start a business, but they do not know how to register a company. In Pakistan, private company registration came according to the company ordinance act in 1984. But now, we follow the company ordinance 2017. Since 1984, it is considered one of the most recommended types of business. SECP is the platform through which we register a PLC. Read more
A public limited company is a type of limited liability. But, in this case, the company can sell and trade its shares in public. However, in these types of businesses, sharing the worth of the company is necessary. So, the buyers would come to know the worth of the company. However, the selling and trading of shares to investors increases the capital of the company. But, forming a public limited company has more strict requirements as compared to a private limited company. A public limited company has all the advantages of a private limited company. Read more.
The process of company registration in Karachi includes __ basic steps that are explained below:
COMPANY NAME SEARCH - STEP 1
Before getting your business registered, you have to search for a business name and check for its availability. There are around 66682 companies registered in Karachi so finding a name can be difficult. Luckily, we have a solution for that too. Our website has a company name search feature that allows you to search for your business name within minutes. The feature is simple, quick, and free!
You have to propose three names to the registrar out of which one will be approved. But, there are certain instructions you will have to follow while choosing the name. Although, we are making it sound simple, but there are some restrictions and prohibitions. You have to make sure that the name you chose is not inappropriate, deceptive, and not identical or closely similar to the name of other registered companies. There are some words and phrases that aren’t allowed in the name either. Conclusively, company name reservation won’t be an easy task but we’re here to help you every step of the way! On the other hand, it will be challenging to come up with a perfect company name. A good name can make a real difference as stats show that 77% of consumers are driven to businesses with interesting names. It can be consuming and frustrating. The name will appear on the logo, business cards, letterheads, website, and other promotional material. So, you should be careful and choose wisely.
Haven’t done NTN Registration yet ?
So, after proposing three names, you’ll get to know in 2-3 days if it’s successful. Your chosen name will remain reserved for 90 days until you pick up your Company Name Reservation Certificate.
REQUIRED DOCUMENTS - STEP 2
The second step is a crucial one. You have to make sure that you undertake it carefully. Some documents are required for company registration in Karachi. You’ll have to submit the following documents to SECP:
1- Memorandum of Association
The memorandum is a legal document that determines the conditions upon which the company will be operating in the future. The document must be crafted crucially. You may need to connect with a professional lawyer to draft this document for you.
2- Article of Association
It is a document that defines the purpose of the company and specifies its regulations. It forms a constitution combined with the memorandum of association. There are many legal terms included in this article that you must read carefully before processing ahead. Basically, it decides the operation of the company you are forming.
3-CNIC copies of members
4- Information about company directors, company profile, etc.
5- Original bank challan: It determines that the company registration fee has been paid to the respective banks. If you’re doing online registration, you will have to submit the scanned receipt.
We understand that crafting, collecting and submitting documents can be a hectic task. The legal processes will use all of your time that you could’ve spent strategizing ideas to grow your business. To be precise, you’ll be wasting a lot of your precious time in this process. Smart business owners tend to implement strategies that could earn them more money than saving money. You should be more interested and focused on your business operations. Corporate matters such as the registration of a company should be left for the professionals to do. Experienced people can guide you and undertake the task much better than you.
At Spectrum, we have registered over 6000 companies in Karachi. We know all the processes, guidelines and restrictions very closely. We understand that you’ll be reluctant to spend your money in a process that you can do yourself. But, let me tell you there are many cons to doing it yourself. You’ll be wasting your valuable time rather than utilizing it to do something productive. Plus, you’ll likely make mistakes in the procedure that may harm you in the future. That’s why 80% of the businesses are inclined towards handing over their corporate matters to professionals.
CERTIFICATE OF INCORPORATION- STEP 3
After completing the two steps mentioned above, you’ll receive a certificate of incorporation. If you’ve registered a Private Limited Company or an SMC, you may start your business after receiving the certificate.
However, the procedure is slightly different if you have registered a Public Limited Company. You’ll have to attempt an additional step. It has been mentioned above that the companies are registered by The Companies Act 2017. The act clearly declares in Section 19(1) that the CEO or one of the company directors is obligated to file an appropriately verified declaration. After the declaration is accepted by the registrar, the company will be considered registered.
AFTER COMPANY REGISTRATION:
As soon as your company is registered the first thing you need to do is to open a current bank account so that your payments and transactions are safe and secure. After that you should track all records and make them filed. Your legal documents includes companies MOA (Memorandum Of Association) and AOA (Article Of Association), CIN (Challan Identification Number), PAN (Permanent Account Number), TAN (Tax collection Account Number), and the letterhead of the company. The record of hiring and the office allocation papers should also be mattered carefully. After the compilation of records jump on to the marketing strategies.
The procedure may same complicated but even after the completion, there are other corporate processes ahead. For example, you’ll have to file taxes, get a GST, a chamber of commerce and much more. If you are planning to do all corporate matters yourself, you should spare a lot of your time.
OPENING A BANK ACCOUNT
Post company registration, opening a bank account is the most important task. If you’re board of director of the company, you must pass the resolution. Every company operating in Pakistan needs to have a bank account for its day-to-day transactions. You can request by providing some required documents.
FILE REGULAR INCOME TAX RETURNS
The last thing is to make an application to get an NTN in the name of the company so you may file your taxes on time. Noncompliance with the mentioned steps can result in a huge penalty according to the government. Yet, another reason to apply for company registration through a corporate firm in Pakistan. It will minimize the risk of penalties.
COMPANY REGISTRATION BENEFITS:
Registering a company may have many benefits like it allows you to expand it widely as many customers and suppliers prefer to work with a Private company rather than with an individual. Moreover you can target to larger companies and government. Registering a company can be the best way to ensure success, it will increase the liability and lower the tax rates which means you can focus on expanding the business. Furthermore if you have complications regarding to your business plan, a Business Consultant can help you out.
COMPANY REGISTRATION MADE EASIER
RELIABLE & AFFORDABLE COMPANY REGISTRATION SERVICES
Spectrum is recognized for providing company registration services in Pakistan. Our professional tax advisors and consultant are 24/7 available for support. If you have any queries for company registration, contact us..