Pakistani law provides for a number of business forms for investors. These include:

Company

Pakistan allows for the formation of several types of company forms, including:

A company limited by shares
A company limited by guarantee
An unlimited company

Each of these forms, can be registered as private, public, or as a single member company.

Key aspects of a private company include:

Formed by at least 2 or more members, the maximum limit is 50
The transfer of shares is restricted
Share or any debentures of the company may not be offered publically

Key aspects of a public company include:

Formed by at least 3 or more members, there is no maximum limit
Shares of the company can be offered publically and listed on a stock exchange

Registration fees

The formation of a company is subject to a registration fee based on the capital amount of the company. The fees are as follows:

For capital of PKR 100,000 or less, the fee is PKR 2,500
For capital amounts exceeding PKR 100,000, the fee is PKR 2,500 plus:
- PKR 500 for every PKR 100,000 or part of PKR 100,000 exceeding the first PKR 100,000 up to capital of PKR 5 million
- PKR 125 for every PKR 100,000 or part of PKR 100,000 exceeding the first PKR 5 million

The maximum registration fee is PKR 10 million.

Partnership Firm

A partnership firm can be formed by the execution of a partnership deed, which must be authorized by the Notary Public Magistrate.

Key aspects of a partnership include:

Formed by at least 2 partners and a maximum of 20 (exception below)
In the case of certain professional partnerships, such as lawyers or accountants, a partnership can be formed with greater than 20 partners
Limited liability partnerships or similar cannot be formed in Pakistan
A partnership firm may be registered with the Registrar of Firms, but is not required to be

Joint Venture

Joint ventures in Pakistan are limited-time entities formed by a business agreement between two or more venture partners. The agreement defines the duties and responsibilities of each partner as well as the division of income, assets, and liabilities. They can be formed as a partnership or as a company.

Sole Proprietorship

A sole proprietorship can be formed by an individual in Pakistan and need only be registered with the tax authorities. The sole proprietor has unlimited liability for the business.

Cooperatives

Cooperatives in Pakistan are business organizations owned and operated by a group of individuals for their mutual benefit. A cooperative can be formed as limited or unlimited.

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