There are several ways by which foreigners may commence business in Pakistan-

  1. Branch Office– Branch office can be set up in Pakistan if the parent company has an existing contract with a Pakistani company or government body. Hence, the branch office can engage on the business activities which involve invoicing and signing contracts, but only within the confines set up by the parent Company.
  2. Representative office or Liaisons office– A foreign entity/person can also register a liaison office in Pakistan, provided that the foreign company is entitled to conduct business under the national laws of the home country.
  3. Joint Stock Companies– Require a minimum of three and maximum of 50 shareholders and can have a public subscription for shares and shareholders may freely dispose off their shares.
  4. Limited Liability Company– most widely set up business entity sue to low share capital requirements and simplicity of its corporate structure. Also referred to as a Private Company, with the minimum paid up capital requirements of USD 1,000 and only required 2 directors and two shareholders.

Incorporation of company involves-Seeking approval on the name of the Company, payment of fee associated with incorporation and registration of the application, followed by-obtaining digital signature and creation of company seal, registering for sales tax, income tax, registration with Employees Social Security Institutions, Employees Old Age Benefits Institution and Labor Department, if required.