Assignment no.
2
Business law and Taxation
Submitted to: Dr. Zeeshan
Submitted by: Group 2
Members
Wasim Cheema
Syed Ali Haider
Ali Haider
Arslan Arif
Usman Zaman
M. Abubakar
Semester: BBA 8th
LBS
UNIVERSITY OF LAHORE (CHENAB CAMPUS)
Legal Process of Business Registration
Only six basic steps are involved in the incorporation of the company. So let’s discuss them one
by one for your understanding and you will get to know how the firm registration process can be
done.
1. Approval of the Company’s Name:
The first step of new company registration in Pakistan is to choose a name. When you choose the
name for your company then keep it in your mind that you should not to use the inappropriate
words. Any deceptive words or terms will be straightforwardly rejected by the SECP at the first
place. Before choosing the name of your company, make sure that it is not identical with the
existing companies’ name nor closely resembling. While selecting the name of your company the
applicants have to look into the prohibitions and restrictions of SECP.
2. Fees Payment for incorporation and Register your company:
After the approval of the name of the company, you need to get a name availability certificate
from SECP and for that, you have to file an application. Applicants have to pay fees to
receive the name availability certificate from SECP. You can pay the fees by using any bank
challans at designated Muslim Commercial Banks (MCB). After this, you have to submit the
following document
Declaration of compliance
Identification of the office’s location
Particulars of directors, secretary, chief accountant, auditors and other
Copies of the Memorandum and Articles of Association with each member’s signature,
where:
Memorandum of Association: Memorandum of Association tells your business sector of the
company e.g. Institution, Travel agency, Trading or manufacturing, Supply or chain of stores. Or
simply you can say that MOA tells about the relationship of your company with the rest of the
world.
Articles of Association: Articles of Association explains the day-to-day proceedings within the
company i.e. what role CEO and directors would play, business concerned meetings and the
appointments of employees. It highlights that how the company will run and give the details
about the functions of the company.
3. Digital Signature and a Company Seal:
The third step of business registration is to get the digital signature and a company seal. The
signature can be obtained by using the electronic services of the SECP and is granted by National
Institutional Facilitation Technologies (NIFT). After the issuance of a certificate of
incorporation, the company representatives have to present a seal of the company, that depends
on the where the business will be headquartered or started. Some states also require a corporate
seal from the corporation, that is also sometimes referred as the company seal.
4) Register for Income, Sales and Professional Taxes:
The fourth step of firm registration is to register for taxes. For income tax registration, the
applicants will have to apply for a National Tax Number (NTN) at the tax facilitation of the
Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). The requirements for this
application include
NTN form
Proof of registration
Memorandum and Articles of association
Bank account number
Copies of National Identity Cards (NICs) of companies’ Directors
An attestation of business address
Sales tax can be registered by applying for a Sales Tax Number (STN) at the tax facilitation
center of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). The applicants
should register with Exercise and Taxation (ET) Department of the District for the professional
tax.
5) Need to Register with ESSI and EOBI
The fifth step of private limited company registration in Pakistan is to register with ESSI and
EOBI. The company will need to register with
Employees Social Security Institutions
Employees Social Security Institution
Every business or a company with five or more employees have to be registered with the Federal
Employees Old-age Benefits Institution (EOBI).
6) Need to Register with the Labor Department of the District:
All companies are required to register with the District Chief Inspector of the labor department in
each district in order to safeguard the labor standard of the workers. An employer needs to
submit the application form A along with the relevant bank form for registration. Once you
follow all of the above instruction strictly and full fill all the requirements of SECP, your
company will get ready to become an independent operating body in Pakistan.
The procedure of online company registration: For online company registration, the online
procedure for submitting documents/returns through eServices is as under:
Availability of Name
The applicants will connect to https://eservices.secp.gov.pk/eServices, to signup, if he or
she is a new user. The applicants will receive an e-mail containing the user activation
link. The user account will be activated by clicking on the link,
The client will log in to eServices and will have to select “Fast Track” option in order to
enter information and for the submission of the application.
After that, the applicants have to pay the prescribed fee.
