Pakistan is among the courtiers which are exporting I.T services of billions of dollars every year. Export of I.T services and domestic industry providing lot many employment opportunities, livelihood of millions of people depends upon these services.
Thousands of I.T companies are working in Pakistan and each year hundreds of I.T companies are registered with Securities and Exchange Commission of Pakistan.
Income arising from export of I.T services is exempt from tax till June 2019, but there is plenty of chance that such services will be remained exempt for unforeseen future, as earlier the said exemption was available till the end of Financial Year 2016 but exemption period is extended further.
Companies involved in the export of I.T service are also exempt from minimum tax which is 1% of gross turnover / sales revenue. Minimum tax is charged even when a company suffering losses.
A misconception normally found among I.T professionals that all incomes earned by an I.T company are exempt. Only income arising from export of I.T services is exempt, income arising or earned from provision of services in domestic market are taxable.
Company Registration with Pakistan Software Export Board (PSEB)
Company Registration Process: Step No.1 (Name Reservation)
First step to reserve name for company, choose a unique name , which has no resemblance with the name of any existing company.
Company Registration Process: Step No. 2 (Preparation of Documents)
The second step in company registration is drafting some legal documents, corporate legal documentation.
Memorandum of Association:
Memorandum of association contains name of company, registered office of the company, principal business activities , authorized capital and liability type of members.
Articles of Association:
Articles of association is a legal documents which describes rules under which company is run by directors.
Data forms are filed with SECP for registration of a company.
Company Registration Process Step No. 3 (Fees and Certificate of Incorporation)
Last step is deposit of fee, fee can be deposited in designated branches of UBL and MCB. If SECP officials are satisfied with legal documents of company then Incorporation Certificate is issued. If SECP officer has some observation then such observations must be removed.
Registration with Pakistan Software Export Board (PSEB) renders many incentives e.g. free internees, equi20% of permanent employees of a company, are provided to the companies registered with PSEB.
Tax exemption is available to the companies which are registered with PSEB. Hence, registration with PSEB is necessary to avail tax benefits.
See also Process of Consultancy Company Registration