Advantages And Disadvantages of a Company in Pakistan

We wrote article on “how to register a private limited company in Pakistan” and a large number of people has sent us emails and requested to explain the major advantages and disadvantages of company formation in Pakistan.

In Pakistan, people generally think that if they will form a private limited company their business will grow exponentially. It is not true. You should assess your business first and decide whether it is time to convert it to a company or not . No doubt, registration of company is necessary if you have plan to provide Hajj & Umrah Services or banking services etc. but if you have just started your business then my advice is to establish your business first and then go for company formation.

Company Registration in Pakistan – How to Register a Private Limited Company in Pakistan

It is very easy to set up a private limited company in Pakistan; however, people generally don’t know registration procedure. There are large numbers of law firms working in the country to provide consultancy for incorporation but it is always good to have little knowledge about processes involved in registration.

In Pakistan, private limited companies are incorporated and regulated by the Companies Ordinance, 1984 while Securities and Exchange Commissioner of Pakistan (SECP) is a regulatory authority established for regulation of stock markets and the Companies ordinance, 1984.  One of the important functions of the Commission is the registration/incorporation of public and private limited companies. Therefore, people who want to get their private limited companies registered are supposed to apply to the commission. The commission issues incorporation certificate when all requirements are met by promoter(s) as per law.

How to Register a Company in Pakistan?

Company registration in pakistan remains the most favored form of business organizations in Pakistan. Incorporation of a company really helps boost up business for medium as well as large-scale business enterprises. Legal regime for establishment and regulation of companies in Pakistan is given in the Companies Ordinance, 1984. 

Whereas the function of administration of these companies is vested in the Securities and Exchange Commission of Pakistan and the Registrar of Companies appointed by the Securities and Exchange Commission of Pakistan for a Province of Pakistan where such company is to be registered.