Business License In Pakistan

Pakistan's economy is flexible. It can accommodate many business people and promote their business. The licensing of businesses in Pakistan is also very easy so that you can start your desired business without much effort. Here in this article, we will discuss all business licenses in Pakistan.

Benefits of doing business in Pakistan

Investment in Pakistan is beneficial for the businessman due to the following reasons:

• The low competition rate in Pakistan supports the business and maintains the business progress.
• Pakistan has a vast population. There is a low ratio between people and business that is beneficial for business. It ensures the development of business.
• Pakistan's economy is rapidly growing. Pakistan has an excellent geographical structure. CPEC is ensuring economic progress. Investment in Pakistan is beneficial for the business.

Steps to register a business in Pakistan

The import and export business and business on large scales need to register themselves. There are the following requirements and steps to register a business in Pakistan.

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The process of business registration is also given below:

Business Name

Decide the name of the business. The business name should not reflect an already existing brand, company, or business. The business name should be unique and attractive. Register your business. Make a taxation file, pay taxes regularly, and maintain the file.

The business name should be decent so that SECP could approve it quickly. Follow the SECP instructions to decide on a business name. Never use prohibited words in a business name.

Business Name Registration from SECP

After deciding the business name for the business, the next step is to register the business from SECP. Open the following link and follow the instruction given below the link.

https://www.secp.gov.pk/eservices/eservies-company-name-reservation/

•  Open the website and signup.
• Login to the e-Service portal.
• Select the registration method—normal track registration or fast track registration (for the urgent registration).
• Fill the registration form online.
• Submit the form.
• Take a print of the form for record. Submit the Challan form in the desired bank.

NTN Registration Number

For income tax registration, apply online at the website of FBR. Following documents are required to apply for NTN:

• You can easily obtain the NTN form from the FBR website.
• A proof for the registration.
• Articles of association (provide the details of the company plan and progress. It provides the details of the CEO, directors, and business workers' roles. It also contains the details of the business meetings and employee recruitment).
• Memorandum of Association (provides details about the manufacturing of the business. It includes information about the business type, i.e., traveling, manufacture, trading, supply, etc. It provides the output of the business to the world).
• Bank account number and bank details.
• Copy of national identity card of the business owner.
• An attested copy of the business's official address.

Use the following link and register yourself and get NTN for the business.

https://www.fbr.gov.pk/categ/register-income-tax/51147/30846/71148

It provides the facility of e-registration for getting the NTN for the business. For e-registration, the following documents are required.

• Original national identity card.
• A registered sim card. The sim card should be registered on the national identity card of the business owner.
• E-mail address of the business owner.
• Evidence of business ownership.
• Utility or electricity bills for the last three months.

After the process, the business owner gets an e-mail at the registered e-mail address. The e-mail contains the username and password for the further process.

Follow the instructions provided in the e-mail and on the website to proceed further.

Registration with Social Security Institutions

Registration with social security institutions depends on the location of the business. Register your business with one of the following social security institutes according to your location:

• Punjab Employees Social Security Institutes (PESSI)
• Sindh Employees Social Security Institutes (SESSI)
• Balochistan Employees Social Security Institutes (BESSI)
• Khyber Pakhtunkhwa Employees Social Security Institutes (KPKESSI)
• Old Age Beneficial Institutions (EOBI): Pensionable employees and disabled employees are registered here. Every industry or business registers five employees in this section. These employees are registered in Federal Employees Old-age Benefits Institutions (EOBI).

Certificate of Incorporation

The signature for the business can be obtained by using the e-service of the SECP. The business signature is issued by the National Institutional Facilitation Technologies (NIFT). The signature provides a seal to your business. After the certificate of incorporation, you can start the business in any city under the limitations of the concerned social security institutes.

Registration with Labour Department

To ensure a successful business, one should register it with the labor department of the district. The labor department provides security and safety to the employees. This registration empowers the business and employees.

Deposit of Shares

As the process of registration completes, shareholders deposit their share amount in the bank account. The company then uses the amount in the bank account to start the business. Each shareholder has to pay an equal amount of money.

Businesses requiring a license in Pakistan

When a company registers itself with the concerned authorities, it may be subject to licensing. You have to apply for the license after registration if you are doing any of the following businesses.

Food Business license in Pakistan

For the food business license, the applicant should submit the following information to the Pakistan Food Authority.

• The total area occupied for the food business.
• Location of the food business.
• The building of the food business.
• Quality of the food products supplied to the customers.
• Condition and working of the quality control unit of the food business.
• Ventilation system.
• Protective measures.
• Basic facilities like water, air, etc.

The above information and the applicant's personal information is submitted to the food department. The department takes action on the application. The Executive District Officer Health and a representative from the food authority visit the food business place. The Executive District Officer Health ensures the quality of food. They put their recommendations about the food business on form 8, form 10, and form 11.

The Food Authority issues the food business license for one year. The license renews annually. In case of any misconduct or poor food quality, the license is canceled.

License for Travel Company

Pakistan is well known in the world for its natural beauty. Pakistan has all types of picnic points. The famous picnic points are Naran Kaghan, Murree, Nathiagali, Swat, Chitral, K-2, and many more. Annually thousands of tourists visit Pakistan. Pakistani land is also famous for the old civilizations.

Tourists need guidance for traveling in Pakistan. The most emerging business in Pakistan nowadays is running a traveling company. For a traveling company, one should have information about the Northern areas of Pakistan.

The traveling company needs a license. The Pakistan Department of Tourists Services issues the license to the travel company. The license for the travel company is granted annually. After one year, the company renews its license. Following are the requirements for the travel company license:

• Location of the travel company.
• The building area and map.
• Rules of the company and their percentage of adaptation.
• Staff details.
• Staff fitness should be provided in the form of fitness form.
• Complete details of general manager and manager with their qualification and experience.

For the renewal of the license, the paid challan and original travel company license are submitted to the Pakistan Department of Tourists Services. 

License for the Seed Business

Pakistan is an agricultural country and exports agricultural products. The agricultural business is well established in the country. One kind of agricultural business is the seed business. The Federal Seed Agency and National Seed Registration issues the license for the seed business.

The license is mandatory for all types of seed business, including dealers, growers, and processors. The license for the seed business is issued after the clarification of the following factors:

• Inspection on type of seed.
• Tasting of seed quality.
• Effect of physical factors on seeds such as moisture, purity, mixture, weight, etc.
• Seed sampling and resampling in the laboratory.

The seed license consists of the following basic units:

• License issuing authority (Federal seed certification).
• Reference number of the license.
• Species of the seeds.
• Minimum and maximum quantity of the seeds production in the form of containers.
• Weightage of the seeds.

License for the Textile Industry

The textile industry is very famous and needed in each country. Fabric is used worldwide. People of all colors, civilizations, and ages use the cloth to cover their bodies. In Asia, India and Pakistan are famous for their modern and unique dresses. They export fabrics to the entire world. Their dresses have a unique identity in the world's market.

The Pakistan Ministry of Textile Industry issues the license for the textile mill or distribution. The quality and durability is the key factor in the success of this business. The business provides the following information to the Pakistan Ministry of Textiles:

• Location of the business.
• Details of working staff.
• Details of building and machinery present in the business.
• Safety measures for any accident.
• Raw material import details.
• Process of the fabric formation and packing details.
• The delivery method of the fabric.
• Export details if the fabric is exported from Pakistan.

License for LPG Business

The Oil and Gas Regulation Authority issues the LPG license. Following are the requirements for the LPG license:

• Application form with paid challan form.
• Attested copy of all the partners or the owner of the business.
• Location of the business with the surrounding details.
• Financial support of business details.
• Working staff details and working hours detail.
• Safety measures details.
• Storage details and procedure.
• Quality of LPG.
• Minimum and maximum distribution of the LPG per day.
• For the renewal of the license, the last three years' working report is attached along with the original license.

So now you know the whole process of starting a business in Pakistan that needs a license. We hope that our research in the form of this article will aid you throughout this entire process.