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OPTIONS FOR FOREIGN INVESTORS - A STEP-BY-STEP GUIDE
DISCLAIMER
The purpose and scope of this information is to provide a general idea about setting up an IT firm/company in the country. All the material included in this document is based on data/information gathered from various sources. Although due care has been taken to compile this document, the contained information may vary due to change(s) in any of the constituent factor(s). Pakistan Software Export Board (G) Limited (PSEB) does not assume any liability for any financial or other loss in consequence of undertaking this activity, while solely relying on this document. Therefore, the content of the delineated process should not be relied upon for making any decision, investment or otherwise. It is simply a handy reference for understanding the said subject. The prospective user is encouraged to gather any information he/she considers necessary for making an informed decision. PSEB does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information or process disclosed.
Step 1
Form of Business Organization
1. For foreign investors (individuals) – Private/Public Limited Company
2. For foreign firms, choose either of the two forms – Private/Public Limited Company or Branch/Liaison Office |
Step 2
Approach Foreign Investors Help Desk at the relevant Company Registration Office of Securities and Exchange Commission of Pakistan (SECP). |
Step 3
Locate a corporate attorney/lawyer and Chartered/Management Accountant |
Step 4
Prepare the documents required for the Registration of the form of business you have selected. Samples for each document, including Memorandum of Association and Articles of Association, are available courtesy SECP. |
Step 5
Obtain Registration of your Company from Company Registration Office of SECP. |
Step 6
Open a bank account. |
Step 7
Contact Board of Investment (BoI) to acquire formal permission to operate the Branch/Liaison Office. The Application Form for permission to establish Branch/Liaison office by Foreign Companies in Pakistan is available here. |
Step 8
Contact State Bank of Pakistan for permission to receive foreign remittance in bank account, in case of Branch/Liaison Office. |
Step 9
Register with the concerned income tax department to obtain a National Tax Number (NTN). |
INFORMATION FOR OPENING OF LIAISON / BRANCH OFFICES OF FOREIGN FIRM
The Board of Investment (BoI) processes the applications for opening a liaison/branch office within a period of 6 to 8 weeks. Details on the required documentation etc. are available at all offices of BoI. Application form for permission to establish branch/ liaison office by foreign companies is available here.
The permission for opening of branch/ liaison office is usually granted by the BoI for a period of 3 to 5 years, which is extensible subject to reviewing and examining the past performance of the company. These requests for renewal or extension are processed by the BoI within two weeks’ time. (Source: http://www.pakboi.gov.pk)
TYPE OF BUSINESS ORGANIZATION AND INCENTIVES OFFERED
Though it is your business decision as to what sort of corporate structure you want to have, it is recommended that a private limited company be formed in order to take full advantage of the Government of Pakistan incentives. Some of these incentives include allowing 100% ownership of equity and 100% repatriation of profits for foreign investors.
REGISTRATION WITH PAKISTAN SOFTWARE EXPORT BOARD (PSEB)
After having formally registered at SECP, you may want to register with Pakistan Software Export Board as well.
Please note that PSEB only registers your firm/company with itself with a view to providing incentives offered by the Government of Pakistan. The formal registration of your company after which the company becomes a legal entity is carried out by SECP, and not PSEB. The registration process with PSEB can only be initiated after your firm/company obtains registration from SECP.
Please contact us for more details at info@pseb.org.pk |
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