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 |