Company Registration in Pakistan: SECP LEAP Step-by-Step Guide

Company registration in Pakistan is now largely online, but your choices at the start can affect the business for years.

The Securities and Exchange Commission of Pakistan (SECP) registers companies under the Companies Act, 2017. Most new applications now go through its LEAP portal.

Choose a structure

Common options include a private limited company, a single-member company, a public company, a limited liability partnership, or an unregistered sole proprietorship or partnership. The choice affects liability, tax, funding and compliance.

Steps on the LEAP portal

SECP’s user manual sets out these main steps:

1. Register on the LEAP portal. CNIC holders are verified with NADRA, and mobile numbers are also verified.
2. Reserve a name by checking availability and stating its significance.
3. Select business objects, including the sector and principal line of business.
4. Enter company information, such as capital structure and registered address.
5. Add stakeholders, including members, directors and authorised persons, with documents.
6. Review the Articles and Memorandum of Association.
7. Give third-party information. FBR details are mandatory.
8. Choose the declarant and have members apply their PINs.
9. Pay by card or 1-Bill and submit.

The manual says payment must be made within seven days, or the system cancels the application. Fees and processing times change, so check SECP’s current schedule.

Documents to prepare

• CNICs or passports of shareholders and directors
• Proposed company name options
• Registered office address
• Business description
• Shareholding and capital plan

After incorporation

Set up your National Tax Number and bank account, adopt proper records, and diarise annual filings. A shareholder agreement is strongly recommended where there is more than one owner, because the articles may not deal with every commercial issue.

Private limited company or LLP?

A private limited company suits most businesses that want investment, separate shareholders and a familiar structure. A limited liability partnership can suit professional firms and smaller ventures that want flexible management with limited liability. A sole proprietorship is simple, but it gives the owner no separate legal personality.

Choosing a company name

Names that are too similar to an existing company, or that imply government links, can be rejected. Prepare several options and be ready to explain the meaning of the name. Reservation does not give you trademark rights, so check trademark availability separately.

Common mistakes

• Copying business objects that do not match the actual activity
• Issuing shares without an agreement on exits, roles and funding
• Using a temporary registered address
• Treating company money as personal money
• Missing annual filings after incorporation
• Assuming the activity needs no licence, when a sector regulator may require one

Foreign investment

Foreign shareholders and directors can raise extra requirements, such as security clearance in certain cases, and investment needs to be properly documented to protect future repatriation. Take advice before the money moves.

Costs of company registration in Pakistan

Costs depend on the company type, authorised capital and any professional help. SECP publishes its fees, and these change, so check the current schedule before budgeting. Remember to include ongoing compliance and accounting costs as well.

Company registration in Pakistan is only the beginning, since filing obligations continue for as long as the company exists.

Get help

Our corporate lawyers can advise on structure and manage the filing.

Official source: Securities and Exchange Commission of Pakistan