1.SEEK APPROVAL ON NAME OF THE COMPANY
The first step towards incorporation of a company is to seek the “availability of name” for the proposed company from the concerned registrar of companies. Although, it sounds simple enough, but there are certain prohibitions and restrictions, the applicants have to look into while choosing a name for a company.
2. PAY FEE’S ASSOCIATED WITH INCORPORATION AND REGISTRATION OF THE COMPANY
Post receiving the name availability certificate from SECP , the applicants have to file an application for incorporation. The fees associated with the process can be paid using the relevant bank form at designated branches of The Muslim Commercial Bank(MCB) in Pakistan.
Post payment of the fee, SECP then requires the applicant to submit the following documents
- Declaration of compliance
- Identification of 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 explains your business sector of the company e.g. IT, Institution, Travel agency, Trading or manufacturing, Supply or chain of stores. To put simply, MOA tells about the relationship of your company with the outside world.
Articles of Association lets know about 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, in short- how the company will run.
3. OBTAIN A DIGITAL SIGNATURE AND CREATE A COMPANY SEAL
The signature is granted by National Institutional Facilitation Technologies (NIFT) and can be obtained by using the electronic services of the SECP. After the certificate of incorporation is issued, the company representatives may be required to present a company seal, depending on the where the business will be head quartered or started. Some states also require a corporation to have a corporate seal, which is also sometimes referred as company seal.
4. REGISTER FOR INCOME, SALES AND PROFESSIONAL TAXES
To register for Income tax, the company will have to 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, like the income tax can be registered for, by applying for a Sales Tax Number (STN) at the tax facilitation centre of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). For the professional tax, provided it applies, the company will have to register with Exercise and Taxation (ET) Department of the District.