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How to register a Chinese company in Pakistan

Pakistan has a flexible international investment environment that permits international investors to enter and establish businesses. In all business sectors, including the IT industry, foreign investors can do so via an entirely owned subsidiary. Furthermore, investors have the option of returning their gains to their native nation.

Almost 700 Chinese small, medium, and big businesses are now operating in Pakistan, financing in various areas, including the China-Pakistan Economic Corridor (CPEC), and the total is quickly increasing.

Since 2013, the China–Pakistan Economic Corridor (CPEC) has been a set of infrastructural projects being built in Pakistan. CPEC projects were initially estimated at $47 billion, but by 2020, they are worth $62 billion. By constructing new transportation systems, various energy projects, and special economic zones, CPEC quickly updates Pakistan’s essential infrastructure and enhances its economy.

The Pakistani government has signed an MOU with the Chinese government, under which Chinese enterprises that have previously registered can register and operate subsidiaries or branches in Pakistan. As a result of the MOU, any Chinese company wishing to work and do business in Pakistan can apply with Pakistan’s Securities and Exchange Commission (SECP).

ACCORDING TO THE MOU, the SECP will construct an assistance center, which will function as a connection between the SECP’s registration offices and international potential investors on topics pertaining to company registration and post-incorporation operations in Pakistan.

Foreign investors are mainly protected from nationalization, expropriation, and monetary inconvertibility under the law.

The processes for a foreign corporation to register in Pakistan are outlined below.

Step 1: Choose a genre

The first step is to decide on a company category. An international company has the option of forming a private company or a single-member private limited company with the Securities and Exchange Commission of Pakistan (SECP):

A single-member company (Maximum one shareholder, minimum one director) should choose this category for foreign corporations with only one stakeholder.

Private limited company (Minimum two shareholders and maximum 50 shareholders, minimum of two directors) This category is excellent for multinational corporations with several shareholders or partners.

After you’ve chosen a category, the following step is to gather all of the necessary paperwork.


Step 2: Make a list of all the papers and data you’ll need

  • The following documents/information must be presented to the SECP to be incorporated.
  • The following papers are required:
  • The corporation’s name
  • Principal Business Service (a brief description of intended business)
  • A Pakistani address for communication
  • Names of shareholders, directors, and chief executive officers and photocopies of their passports (for foreigners) or CNIC/POC/NICOP (for Pakistanis).
  • Foreign shareholders and directors must sign an agreement in an authorized manner.
  • Documents about a foreign corporation (in case the proposed shareholder is a company)
  • Company description
  • Details about the company’s directors, including citizenship and country of origin
  • Board of Directors Resolution (Approval of investment in a local company)
  • Association Articles
  • Association Memorandum
  • Incorporation certificate

Submission of the registration fee testimony (depending on authorized capital)

All papers and information obtained about the foreign firm must be filed with the registrar after they have been:

Affidavit of the respective authority of the firms in the region where the company is incorporated, attested by a public official in the region where the business is incorporated.

A Pakistani diplomatic, consular or consulate officer authenticates the document.

When these documents are submitted to the SECP, the SECP will grant a certificate of registration and a National Tax Number (NTN) to the business at the moment of incorporation.

As previously stated, any foreign firm wishing to register in Pakistan must have a physical location. Instead of wasting time and money renting/leasing space and then outfitting it.

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