CPEC & Company Registration / Formation / Incorporation in Pakistan

CPEC & Company Registration / Formation / Incorporation in Pakistan

This article outlines the general requirements and comparison among various forms of company registration in Pakistan by foreigners / Non Pakistanis and how foreign companies can set up their offices in Pakistan. A company which is incorporated or formed outside Pakistan which establishes its place of business within Pakistan is called a ‘Foreign Company’. The article is intended as an introductory guide only. You can obtain, on request, further information from “ALVI LAW ASSOCIATES”. SECP also stated in one of its guide that it is advisable to consult a professional for detailed guidance. The relevant provisions of law are contained in Part XIV of the Companies Ordinance, 1984 (the Ordinance) and Rules 22 & 23 of the Companies (General Provisions and Forms) Rules, 1985 (the Rules). This is a guidance article only and should be read with the relevant legislation.

pak-china-industrial-corridor-1024x765

A place of business includes branch, management, share transfer or registration office, factory, mine or fixed place of business but does not include an agency unless the agent exercises a general authority to negotiate and conclude contract or maintains stock of merchandise on behalf of the company. Following are the exceptions:
1. Company shall not be deemed to have an established place of business in Pakistan merely because it carries on business dealings in Pakistan through a bona fide broker or general commission agent acting in the ordinary course of his business.
2. The fact that a company has a subsidiary which is incorporated, resident, or carrying on business in Pakistan, shall not of itself constitute the place of business of that subsidiary an established place of business of the company.
Permission Letter Required:
A foreign company is required to obtain a permission letter from the Board of Investment with a specific validity period for opening and maintaining of its branch/liaison office in Pakistan. Copy of such permission letter is required to be furnished with the documents meant for registration. Renewal/ extension of the permission to open/maintain a branch/liaison office is also required to be obtained from the Board of Investment on the expiry of the validity period of the permission originally granted. Whenever such renewal/extension is granted, a copy must be furnished to the registrar concerned