There are three main forms of business in Pakistan, defined as follows:
- Sole Proprietorship
- Company incorporation (Local & Foreign)
Company in Pakistan:
A Company in Pakistan is a legal entity formed under the Companies Ordinance, 1984. It can have share capital or can be formed without share capital. Any three or more persons associated for any lawful purpose may, by subscribing their names to a memorandum of association and complying with the requirements of Companies Ordinance, 1984 in respect of registration, form a public company and any one or more persons so associated may, in like manner, form a private company. A company formed under Companies Ordinance, 1984 in Pakistan may be a company with or without limited liability, that is to say, a Company Limited by Shares, a Company Limited by Guarantee and an Unlimited Company
Company Limited by Shares in Pakistan:
The liabilities of its members in a Company Limited by Shares are limited to the extent of their shares in the paid-up capital of the company. These companies may further be classified as Public Limited Companies and Private Limited Companies.
Public Limited Companies in Pakistan can be formed by at least three persons by subscribing their names to the ‘Memorandum and Articles of Association of the company. The word ‘Limited' is used as the last word of its name.
Private Limited Companies in Pakistan as above said may be formed by one or more persons by subscribing their names to the ‘Memorandum and Articles of Association' of the company. If only one member forms a Private Company in Pakistan, it is called a Single Member Company.
Company Limited by Guarantee in Pakistan:
Company Limited by Guarantee in Pakistan means a company having the liability of its members limited by memorandum to such amounts as the members may respectively undertake to contribute to the assets of the company in the event of its winding up. A Company Limited by Guarantee is usually formed on a ‘non profit basis'. Companies Limited by Guarantee in Pakistan use the words “(Guarantee) Limited” as the last words of their names.
Unlimited Company in Pakistan:
Unlimited Company means a company having unlimited liability of its members.
DaNi Consultants offers undermentioned services in the field of companies incorporation in Pakistan.
- Selection of type of the company.
- Selection of name for the proposed company.
- Obtaining ‘name availability' from Registrar of Securities & Exchange Commission of Pakistan.
- Draft and execute Memorandum & Articles of Association and other documents.
- Payment of fees.
- Represent with Securities & Exchange Commission of Pakistan for any reservations or comments he may have.
- Procure incorporation certificate from Securities & Exchange Commission of Pakistan.
- Subscribe to the agreed share capital of the company.
- Preparation and filing of Prospectus (in case of public companies).
- Obtaining commencement of business certificate for public companies.