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How to register a real estate company in Pakistan
Securities and Exchange Commission of Pakistan (SECP) is a state-owned regulatory agency in charge of the registration of every new company. The registration process has been eased and made convenient for all of the new entrepreneurs by making all the required guidelines available on a single platform, which can be put into action without any difficulty.
The whole platform of SECP is digitalized and you can avail of the online portal for registration without much trouble. The process itself, however, would absorb about 1.5 months in total, but they are worth the effort once you realize the importance of a registered path for your company.
Let’s venture into the entire process in a step by step guide.
How to register a real estate company in Pakistan: a detailed guide
Reservation of the Company Name
There are two ways to do the registration process: the online method using the SECP portal and the old-fashioned way of physical submission of application.
To avail of the online medium, you need to imitate the following steps for complete registration.
• Creation of account on SECP portal
• 1) You need to sign up on the SECP portal to start the registration process. You will do that by locating and clicking on the option of “Sign up for National or Foreign/POC holder.”
• Fill out the form carefully with all the details required of you.
• Once the form filling activity is over, there will be a 4-digit pin sent to you via email and SMS. You will be asked to use that in the required box so that the verification of your account is concluded.
• Name reservation and company incorporation
• Once logged in, select the option of “Name reservation and company incorporation.”
• Suggest three names which ought to relate to what your business or services have to offer.
• To select the exact nature of your business, click on a drop-down menu and click on the most relevant option.
• Choose the mode of payment that befits your convenience. Here are the options: debit/credit card, banks with 1link facility, Easy paisa mobile wallet, ATM, and mobile/internet banking.
• Company Information and Contact details
• Here you have to enter company information and addresses of it’s registered offices and establishment.
• Contact details include a telephone number, email address, and field of business.
• Minimum Capital requirement for complete registration
The minimum amount of capital a company must have in order to be registered as a property-based business is 100,000 PKR. Two different incorporation fee structures are in place for online and offline submissions, as for the former, the charges are up to 1,800 PKR while 3,600 PKR is the fee you have to pay if you opt for the offline mode of submission.
Here’s the link of SECP website for accomplishing the fee payment. https://www.secp.gov.pk/company-formation/formsapplications-schedule-of-filling-of-returns/applications/.
• Physical application for Company incorporation
Below are the steps you need to follow in order to physically submit an application to SECP.
• Download the form using this link as it will direct you to SECP official website. Link: https://www.secp.gov.pk/company-formation/formsapplications-schedule-of-filling-of-returns/applications/.
• The next step is to find your nearest Company Registration Office (CRO) and submit your filled-out form to the registrar.
• Based on the requirements met by your submitted application, the registrar will most likely issue you an availability letter. The proposed name will be kept reserved for 2 months starting from the date of the letter.
The time frame stipulated here is enough to complete the whole process of incorporating a company in Pakistan.
Note
It is recommended to go for the online method as it is less than half the price you need for a physical application, as in the case of the Online method the charges are 200 PKR and in case of physical application the charges are 500PKR.
Furthermore, you can see the charges of incorporation fee get doubled as well in case of physical method.
Submission of documents for Incorporation
Once the name approval stage goes into completion, the next step requires you to submit the incorporation documents to SECP. Here is the list of those documents.
• Memorandum of Association.
• Articles of Association.
• Scanned version of the Directors’ CNIC.
• Receipt of Bank Deposit.
• Allowance by the subscribers for the filling of documents.
• Registration/Filling Fee.
Memorandum of Association
A document that stipulates the details about your business sector.
Articles of Association
A document that outlines the duties of the Directors of your company.
Incorporation certificate and Digital signature
The validity of your documents is checked thoroughly by SECP, once verified, the National Institutional Facilitation Technologies (NIFT) gives a digital signature ascribed to the name of your business, which can be acquired using SECP’s e-portal.
The next step involves the acquisition of the certificate of incorporation from NIFT, for which you are expected to comprehensively present the essence of your company, the details may involve the sector of your business, the target audience, and your general approach to business.
Such steps may vary based on the nature of the cases.
Mandatory registration with FBR
Taxation is an important responsibility of any well-run business corporation. To complete the process of legitimizing your company and having it registered with the Federal Board of Revenue(FBR), for which you need to apply for a National Tax Number (NTN).
Here’s the list you need to ensure with your application.
1) National Tax Number (NTM) form.
2) Proof of your company’s Registration.
3) Memorandum and Articles of Association.
4) Bank Account Number.
5) Copies of CNIC’s of the Directors of the company.
6) Verified business address.
Conclusion
The legal status of any real estate firm is a necessity for it to operate under all the guidelines provided by the regulatory authority of SECP. The process itself is straightforward and recommended to be gone through by all means. The consequences are dire and can really take him by surprise if the owners pursue the unregistered path.
