Company Registration in Pakistan Single Member Company and Private Company (Tabular Comparison)

 

Company Registration in Pakistan

Single Member Company and Private Company

(Tabular Comparison)

A tabular comparison between Single Member Company and Private Limited Company is as under:

Description Single Member Company – Only one natural person as shareholder Private Limited Company – Two or more natural persons as shareholders
1. How company name is written in legal documents? ……(SMC-PVT.) LTD. OR ……(SMC-PRIVATE) LIMITED ……(PVT.) LTD. OR ……(PRIVATE) LIMITED
2. Relevant company registration authority Relevant Company Registration Office, Securities & Exchange Commission of Pakistan (SECP) Relevant Company Registration Office, Securities & Exchange Commission of Pakistan (SECP)
3. Minimum number of members or shareholders  Only One (1) Two (2)
4. Maximum number of members or shareholders Only One (1) Fifty (50)
5. Local resident shareholders / directors Local Resident Shareholder(s) or Director(s) NOT mandatory Local Resident Shareholder(s) or Director(s) NOT mandatory
6. Minimum authorised share capital PKR 1 (However a standard capital of PKR 100,000 is being used / recommended) PKR 1 (However a standard capital of PKR 100,000 is being used / recommended)
7. Minimum paid up / subscribed capital As decided by Company As decided by Company
8. Who can be director of company? Only shareholders can be Director of the Company Only shareholders can be Director of the Company
 

9. Who can be CEO of company?

Any Person whether shareholder or not Any Person whether shareholder or not
10. Prior Licence or NOC for company registration from Government of Pakistan Not Required Not Required
11. Trade licence – prior or subsequent to registration Not Required Not Required
12. Security clearance of foreigners or foreign company Required. However process of security clearance will be initiated after the Company has been formed Required. However process of security clearance will be initiated after the Company has been formed
13. Physical registered office address / Place of business in Pakistan  Mandatory. It needs to be arranged before filing company registration with CRO  Mandatory. It needs to be arranged before filing company registration with CRO
14. Physical presence of foreign shareholders for company registration process Not Required Not Required
15. Physical presence of foreign shareholders for tax registration Mandatory Mandatory
16. Physical presence of foreign shareholders for company bank account opening Generally Required Generally Required
17. Corporate tax rate 31% 31%
18. Average number of days to form scope of activities 5 – 10 working days 5 – 10 working days

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