Foreign Company

Foreign companies looking to establish a presence in Pakistan can do so by registering as a branch office, liaison office, or incorporating a subsidiary. This allows businesses to tap into Pakistan’s growing economy, benefit from its strategic location, and access its diverse market opportunities. Foreign companies are governed by the Companies Act, 2017, and regulated by the Securities and Exchange Commission of Pakistan (SECP).

Benefits

  • Market Access: Direct access to Pakistan’s markets in various sectors, including manufacturing, services, and technology.
  • Legal Recognition: Operate with full legal rights and protection under Pakistani law.
  • Tax Incentives: Benefit from government schemes and tax treaties.
  • Strategic Location: Leverage Pakistan’s position as a gateway to South Asia, Central Asia, and the Middle East.
  • Credibility: Establish trust and reliability with local clients and partners.

Types of Foreign Company Registrations

  1. Branch Office:
    • For specific projects or contracts in Pakistan.
    • Limited to activities approved by the Board of Investment (BOI).
  2. Liaison Office:
    • For promotional activities and market research.
    • Cannot engage in commercial or revenue-generating activities.
  3. Subsidiary Company:
    • A locally incorporated company with foreign ownership.
    • Can conduct full commercial operations.

Required Documents

  1. Charter documents (memorandum and articles of association) of the parent company.
  2. Board resolution authorizing the establishment in Pakistan.
  3. Power of attorney in favor of the local representative.
  4. Latest audited financial statements of the parent company.
  5. Proof of address for the principal place of business in Pakistan.
  6. Information about directors and key personnel of the parent company.

Registration Process

  1. Approval from BOI:
    • Obtain permission from the Board of Investment by submitting the required documents and activity details.
  2. Application to SECP:
    • File the registration application along with the required documents through SECP’s e-Services portal.
  3. Verification:
    • SECP reviews the application and supporting documents.
  4. Certificate of Registration:
    • Once approved, SECP issues the Certificate of Registration, allowing operations in Pakistan.

Post-Registration Compliance

  • Submit annual returns and statutory filings to SECP.
  • File tax returns and comply with local tax regulations.
  • Maintain separate accounts for the Pakistan office or subsidiary.

Legal Framework

  • Companies Act, 2017: Governs the establishment and operation of foreign companies in Pakistan.
  • Foreign Exchange Regulations: Overseen by the State Bank of Pakistan.
  • Income Tax Ordinance, 2001: Applicable to foreign entities operating in Pakistan.

Why Register a Foreign Company in Pakistan?
Registering your foreign company in Pakistan enables you to explore new market opportunities while enjoying legal protections and business incentives. Whether you aim to establish a local presence, conduct market research, or expand operations, the process ensures a seamless entry into one of the region’s fastest-growing economies.