Starting a small business in Pakistan is exciting, but before you start selling or offering services, it’s important to register your business legally. Registration gives your business credibility, protects your name, and allows you to open a business bank account, apply for loans, and work with larger clients.
The process may seem complicated at first, but don’t worry — this guide will explain how to register a small business in Pakistan step-by-step, in simple English.
Why Register Your Business?
Many small entrepreneurs in Pakistan start informally, but registering your business brings several advantages:
- ✅ Builds trust with customers and investors.
- ✅ Helps you get a business bank account easily.
- ✅ Makes you eligible for government support programs.
- ✅ Protects your brand name legally.
- ✅ Helps you pay taxes properly and avoid legal issues.
Step-by-Step: How to Register a Small Business in Pakistan
Step 1: Choose Your Business Type
First, decide what kind of business you’re starting.
In Pakistan, small businesses usually register under one of the following types:
- Sole Proprietorship – You own and manage the business yourself. (Easiest for small startups.)
- Partnership Firm – Two or more people share ownership and profit.
- Private Limited Company – Registered under SECP; suitable for larger startups.
If you’re just starting, sole proprietorship is the simplest and fastest option.
Step 2: Choose a Business Name
Pick a unique and professional name that reflects your brand. Make sure it’s not already in use by another business.
- For companies, check name availability on the SECP website (www.secp.gov.pk).
- For small sole proprietorships, check locally with the FBR or your city’s registration office.
Step 3: Register with FBR (Federal Board of Revenue)
Every business in Pakistan must have a National Tax Number (NTN).
You can register for your NTN online on the FBR website (www.fbr.gov.pk).
Required Documents:
- CNIC (Computerized National Identity Card)
- Mobile number & email address
- Business name & address
- Nature of business
- Proof of business address (utility bill or rent agreement)
Once approved, you’ll receive your NTN certificate online — this is your first legal step toward recognition.
Step 4: Register with SECP (For Companies)
If you’re starting a Private Limited Company, you’ll need to register with the Securities and Exchange Commission of Pakistan (SECP).
Steps:
- Reserve your company name online at SECP eServices.
- Prepare documents like Memorandum of Association and Articles of Association.
- Submit the online form with your ID copies and pay the fee.
- Once approved, SECP will issue your Certificate of Incorporation.
Step 5: Open a Business Bank Account
Once you have your NTN or SECP certificate, you can open a business bank account under your registered name.
Banks usually require:
- NTN certificate
- CNIC
- Proof of business address
- Business letterhead or stamp
This helps you manage income and expenses separately from your personal finances.
Step 6: Register for Sales Tax (If Needed)
If your business sells goods or services and your annual revenue exceeds PKR 10 million, you need to register for Sales Tax.
You can do this online through FBR’s IRIS portal.
Step 7: Get Trade Licenses (if applicable)
Some businesses — like restaurants, salons, or shops — also need a trade license from the local Cantonment Board or Union Council.
Check with your local authority for requirements.
Optional but Helpful Registrations
- PSEB Registration – For IT or freelance businesses.
- Chamber of Commerce Membership – Adds credibility and helps with business networking.
- Trademark Registration – Protects your brand logo and name under the IPO Pakistan.
Registration Cost Estimate
| Type | Estimated Cost | Authority |
|---|---|---|
| Sole Proprietorship | Free – PKR 2,000 | FBR |
| Partnership Firm | PKR 5,000 – 10,000 | Registrar of Firms |
| Private Limited Company | PKR 10,000 – 30,000 | SECP |
(Costs may vary based on city or service provider)
Tips for a Smooth Process
- Use official websites only (avoid agents who overcharge).
- Keep digital copies of all documents.
- Use a professional email for registration.
- Stay compliant with tax filings to avoid penalties.
Conclusion
Registering your small business in Pakistan may seem like a formality, but it’s your first real step toward success. It builds trust, opens financial doors, and gives your business a legal identity. Whether you’re starting a clothing brand, online store, or service company — do it the right way from day one.
Take one step at a time, and soon your small business will stand proudly as a registered and trusted brand in Pakistan.
