Question 1

What does it cost to register a company in Pakistan?

Accepted Answer

The main cost is the SECP incorporation fee, which scales with your authorised capital and is cheaper when you file online through SECP eServices than on paper. Beyond the SECP fee, budget for a small name-reservation fee, digital signature issuance, and — if you use one — a consultant's charge. For a small private limited company with modest authorised capital, total official fees are usually a few thousand to low tens of thousands of rupees, with professional help adding to that.

Question 2

How long does it take to register a company in Pakistan?

Accepted Answer

Online incorporation through SECP eServices is typically completed within a few working days once your company name is reserved and your documents are correct. Delays usually come from name rejections or incomplete forms, so getting the name search and Memorandum of Association object clause right the first time is the main way to keep it fast.

Question 3

Should I register a company or operate as a sole proprietor?

Accepted Answer

Operate as a sole proprietor if you want the cheapest, fastest start and your business risk is low — you only need an FBR NTN against your CNIC. Register a private limited company if you want limited liability, plan to raise investment, hire a team, win corporate or government contracts, or export at scale. Many founders start as sole proprietors and incorporate once the business proves itself.

Question 4

What is an NTN and do I need one?

Accepted Answer

An NTN (National Tax Number) is your tax identity with the FBR. For individuals it's your CNIC number; companies and AOPs get a separate number. You need an NTN to file tax returns, open a business bank account, issue proper invoices, claim sales-tax input, and appear on the Active Taxpayer List — so practically every formal business needs one.

Question 5

What is the Active Taxpayer List (ATL) and why does it matter?

Accepted Answer

The Active Taxpayer List is the FBR's public list of people and businesses that have filed their latest income-tax return on time. Being on the ATL ('filer' status) means you pay substantially lower withholding-tax rates on banking transactions, vehicle and property purchases, and many other dealings than non-filers. Filing your annual return is what keeps you on it.

Question 6

When do I need to register for sales tax?

Accepted Answer

You generally need sales-tax registration once you supply taxable goods as a manufacturer, importer, wholesaler, or retailer above the threshold, or once you provide taxable services above your province's threshold. Goods are registered federally with the FBR; services are registered with the provincial authority (PRA, SRB, KPRA, or BRA). Many B2B customers also require their suppliers to be sales-tax registered.

Question 7

What's the difference between FBR sales tax and provincial sales tax?

Accepted Answer

Federal sales tax on goods is administered by the FBR, while sales tax on services is administered by each province through its own authority — PRA in Punjab, SRB in Sindh, KPRA in Khyber Pakhtunkhwa, and BRA in Balochistan. If you sell goods you deal with the FBR; if you sell services you register with the relevant province; and if you do both, or operate in multiple provinces, you may need more than one registration.

Question 8

Do freelancers pay tax in Pakistan?

Accepted Answer

Yes, freelancers are taxed on their income, but IT and IT-enabled services export income receives concessional treatment for exporters registered with the PSEB. Freelancers should obtain an NTN, document foreign earnings through banking channels, and file an annual return to stay on the Active Taxpayer List and benefit from lower withholding rates.

Question 9

How do freelancers in Pakistan receive international payments?

Accepted Answer

Pakistani freelancers most commonly use Payoneer, Wise, or direct bank wire transfers to receive international payments, since conventional PayPal accounts aren't available in Pakistan. Routing payments through banking channels matters because it documents the income as export earnings, which supports concessional tax treatment and a Proceeds Realisation Certificate where needed.

Question 10

Is PayPal available in Pakistan?

Accepted Answer

No, PayPal does not operate conventionally for Pakistani account holders. Freelancers and businesses instead use Payoneer, Wise, direct bank transfers, or other licensed remittance services to receive overseas payments. Some use Payoneer's tie-ins with local banks to withdraw earnings in rupees.

Question 11

What is PSEB registration and who needs it?

Accepted Answer

PSEB registration is enrolment with the Pakistan Software Export Board, the body that facilitates IT and IT-enabled service exporters. Software houses, IT firms, call centres, and freelancers who export services register to access concessional tax treatment on export income, easier documentation of foreign earnings, and credibility with overseas clients, plus PSEB programmes and facilities.

Question 12

What documents do I need to export from Pakistan?

Accepted Answer

The core export documents are a commercial invoice, packing list, bill of lading or airway bill, a certificate of origin (usually issued by your chamber of commerce), and a Form-E — the bank-issued electronic export declaration that ties your shipment to incoming foreign-exchange proceeds. You also file a goods declaration on the Pakistan Single Window (PSW)/WeBOC, and some products need sector certifications.

Pakistani Business FAQ

Registration

Tax

Finance

Exporting

Digital

Operations

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