Compare the five ways to register a business in Pakistan
| Structure | Owners | Liability | Registered with |
|---|---|---|---|
| Private limited company | 2 to 50 members | Limited | SECP |
| Single member company (SMC) | 1 member | Limited | SECP |
| LLP | 2 or more partners | Limited | SECP |
| Partnership firm | 2 or more partners | Unlimited | Registrar of Firms |
| Sole proprietorship | 1 owner | Unlimited | FBR (NTN) |
How do you decide?
- Want liability protection and you are alone: SMC.
- Have co-founders or expect investors: private limited company.
- Professional partners: LLP.
- Just starting small and accept personal liability: sole proprietorship.
Is an LLC the same as a company in Pakistan?
No. An LLC is a US structure, and Pakistan has no company type with that name. If you are looking for the same idea, which is limited liability for the owner, the closest options are a private limited company, a single member company if you are the only owner, and an LLP for partners. All three register with SECP. Foreign owners should read foreign company registration in Pakistan.
What is a business registration number in Pakistan?
It depends on what you registered. A company registered with SECP gets a Corporate Universal Identification Number (CUIN) and a certificate of incorporation. Almost every business also needs an NTN from FBR for tax, and an STRN if it charges sales tax. A sole proprietor or a partnership does not get a CUIN, so the NTN is the number they use. Your certificate of incorporation shows the CUIN, and your NTN appears on your FBR registration certificate and in IRIS.
For the tax side, see NTN registration in Pakistan and FBR registration after SECP.
What happens after you register?
Every structure needs tax setup: FBR registration after SECP incorporation. For the registration process itself, see company registration in Pakistan and the DIY guide how to register a company in Pakistan. Overseas founders should read foreign company registration in Pakistan.
Mistakes to avoid when choosing a structure
- Picking a sole proprietorship, then signing large contracts personally.
- Forming a private company with a friend without a written shareholders' understanding.
- Assuming SECP registration also registers you for tax. It does not: see SECP vs FBR: which registration you need.
- Choosing high share capital without checking how the fee scales: company registration fees in Pakistan.