Starting a business in Pakistan involves more decisions than most first-time entrepreneurs expect — structure, registration, tax setup, and compliance all interact. Here’s the real sequence.
Step 1: Choose Your Business Structure
Sole proprietorship, partnership, or company — each carries different liability exposure, tax treatment, and credibility with banks/investors. See our business structures comparison for the full breakdown before committing.
Step 2: Register Your Business Name and Entity
- Sole proprietorship — no separate entity registration; you simply register for an NTN under your own CNIC.
- Partnership — draft a partnership deed and register with the provincial Registrar of Firms.
- Company (SMC or Private Limited) — reserve your company name and incorporate through SECP. See our company registration guide for the full incorporation process.
Step 3: Get Your NTN
Every business, regardless of structure, needs an NTN registered through FBR’s IRIS portal — companies get this automatically linked during SECP incorporation; sole proprietors and partnerships register separately.
Step 4: Register for Sales Tax If Applicable
If your business sells taxable goods or crosses the registration threshold for services, you’ll also need Sales Tax registration — this is separate from income tax registration and has its own compliance calendar.
Step 5: Open a Business Bank Account
Banks require your NTN certificate, CNIC, and (for companies) SECP incorporation documents before opening a business account — trying to operate purely through a personal account complicates both banking and tax reconciliation later.
Step 6: Understand Your Ongoing Compliance Calendar
- Annual income tax return (due after each tax year’s June 30 close)
- Withholding tax deductions and statements, if you’re required to withhold on payments to others
- Sales tax returns, if registered (typically monthly)
- For companies: SECP annual filings (Form A/B, annual return) separate from FBR obligations
Step 7: Get Sector-Specific Licenses If Needed
Depending on your industry — food, pharmaceuticals, import/export, financial services — you may need additional regulatory licenses beyond basic tax and company registration. Check with the relevant sector regulator before launching.
A Realistic Timeline
Sole proprietorship: NTN registration alone can be same-day. Company incorporation through SECP: typically a few days to a couple of weeks depending on name availability and document completeness. Budget more time if your business needs sector-specific licensing on top of tax/company registration.
Frequently Asked Questions
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