Business Formation
Business formation in Pakistan involves legally establishing a company while ensuring compliance with government regulations and obtaining necessary registrations. Whether you are setting up a sole proprietorship, partnership, or private limited company, understanding the legal and tax requirements is essential for a smooth business setup."
document required for registeration of public limited company
Business Formation Sole Properitorship
Business Formation A business own by a single individual, it can be registered with a simple process with basic documents on FBR website.
- Business Activity List
- CNIC Copy
- Electricity Paid Bill
- Proof of Address/Property Documents
Registration Fee: Consultancy Fee Only
AOP (Association of Persons) Partnership
Business Formation Partnership is association of more then 1 person and can reach maximum 8 persons, it is also called firm and its relevant law is Partnership Act, 1932. Partners are fully responsible for any legal and financial obligation of this form of business. It’s registration authority is firm registrar.
- Business Activity List incorporated to Partnership Deed
- CNIC Copies of Partners
- Partnership Deed/ Stamp Paper Rs.1050
- Proof of Address/Property Documents
- Challan form 32 amount of 200
- Consultancy Fee for drafting Partnership Deed and completing the process
LLP (Limited Liability Partnership)
Business Formation It is also form of partnership but the liability of the partners is limited to the shares only, it can be formed under Limited Liability Partnership Act, 2017 (the “LLP Act”) and the Limited Liability Partnership Regulations, 2018, LLP. It registration authority is Security and Exchange Commission of Pakistan. List of Documents Required
- Filled in Form III(available on SECP website)
- LLP agreement duly executed by each partner, witnessed and notarized by licensed Notary Public;
- CNIC copy of each partner and designated partner
- Consent of designated partner authorized by any local or foreign entity
- For foreign partner, copy of passport
- Payment of registration fee as per SECP schedule
Single Member Company
Business Formation This is a type of private limited company that has only one shareholder. A Single Member Private Limited Company can also have as many office in entire Pakistan.
Private Limited Company
Business Formation This is   ;form of business entities that is privately owned and controlled by individuals as shareholders, who have limited liability for the company's debts, the liability is only limited to their shares. In case of bankruptcy share holder would not be responsible for liability and debts, court order liquidation of the assets to of private limited company to pay back the debts and shareholders are unharmed personally. PKR100,000 is the minimum capital required for registering private limited company, there must be two partners or Maximum 50 partners are allowed.
List of Documents Required
- Copy of Cnic of directors/subscribers
- Memorandum of Association
- Article of Association.
- SECP Fee
Public Company
Business Formation This is a type of company that is also owned and controlled by its shareholders with limited liability for the company’s debts public limited company must have at least seven shareholders and there is no maximum limit on number of shareholders. It can be listed or unlisted in stock market, Usually such companies are listed on stock exchange for trading of their shares openly. It can be registered according to Companies Act, 2017.
document required for registeration of public limited company
In United Arab Emirates business can be registered in one of the following form.
Sole Proprietorship: A business own by a single individual and typically requires a UAE national as a local Wakeel Khidmaat (service agent). The sole proprietor fully controls the company’s operations and profits and has unlimited liability and he is fully responsible for the company’s debts or obligations legally and financially.
List of below documents required for establishing Sole Proprietorship Company in Dubai:
- Application form
- Trade name of a sole trader
- License application form
- Details about the local sponsor (local agent), in case the sole proprietor is a foreign national
- Copy of the employer’s passport
- Rent Deed
- Residence permit
- No-objection letter from the sponsor.
Who can form Sole proprietorship
UAE nationals
GCC nationals
foreign nationals (Local Sponsor is required against agreed annual fee)
Expatriates can form sole proprietorships only for professional and consulting services (such as medical services, engineering consultancy, management consultancy, legal advice, and information technology consultancy). The Trade Licesne should be obtained from Department of Economic Development (DED) in the UAE.
Partnership
There are two main types of partnerships
General Partnership
Where partners share equally in profits, losses, and management responsibilities.
Limited Partnership
Partners with unlimited liability and limited partners whose liability is limited to their investment.
Limited Liability Company (LLC)
This Type of company is partnership between local partner and foreigner, It offers limited liability protection to its shareholders and can be owned by foreigners with a UAE national as a local partner. The minimum requirement of share off local ownership varies depending on the emirate, in Dubai local partner must poses 51%.
Documents required for registering LLC.
Limited Liability Company (LLC)
This Type of company is partnership between local partner and foreigner, It offers limited liability protection to its shareholders and can be owned by foreigners with a UAE national as a local partner. The minimum requirement of share off local ownership varies depending on the emirate, in Dubai local partner must poses 51%.
Documents required for registering LLC.
Documents required for registering LLC.
- Partner’s passport photocopy( including visa page)
- Registration application form from Dubai Economic Department.
- Trade name Reservation Document
- Photocopy of applicant’s naturalization identification for UAE nationals only.
- Approval issued by other Government authorities for any technical license
Private Joint Stock Company (PrJSC)
PrJSC is a company requires three founding members and could not offer shares to public through stock exchange.
Public Joint Stock Company (PJSC)
It is same as PrSC but it can offer shares to public through stock exchange to raise their capital, must having 10 founding members.
Branch Office
Foreign companies can open a branch office in the UAE to establish business. The branch operates under the parent company’s name and is subject to UAE laws and regulations.
Free Zone Company
United Arab Emirates permit expatriates to hold 100% ownership of their businesses and enjoy tax free environment and for that perpuse they establish free zone where compnies can be open and exemption are the on import and export provided they are not involve in any business inside the emirates, if they do any business in any emirates of UAE the tax and custom duty should be levied upon them.
Offshore Company
These companies are registered in offshore jurisdictions like Ras Al Khaimah (RAK) or Jebel Ali, offering tax benefits, privacy, and asset protection. However, they are typically restricted from conducting business within the UAE.