How to Register Chinese Company in Pakistan

Pakistan has become a preferred destination for Chinese investors. As a result, many Chinese companies are now setting up operations across construction, energy, manufacturing, and technology sectors. Moreover, Pakistan allows 100% foreign ownership, which makes market entry easier and legally secure.

Therefore, understanding how to register a Chinese company in Pakistan is essential before starting operations. This guide explains the process in clear and simple terms, while also highlighting legal and compliance requirements.

Wholly Owned Subsidiary Pakistan – Best Option for Chinese Companies

In most cases, a wholly owned subsidiary in Pakistan is the best structure for Chinese investors. This option allows full ownership without involving a local partner. In addition, it provides strong legal protection and operational flexibility.

Why choose a wholly owned subsidiary?

Firstly, it creates a separate legal entity under Pakistani law.

Secondly, it allows Chinese companies to sign contracts and participate in tenders.

Moreover, it enables easier banking, taxation, and profit repatriation.

Finally, it limits the liability of the parent company.

For these reasons, most foreign investors prefer this structure over branch or liaison offices.

How to Register Chinese Company in Pakistan – Step-by-Step

Step 1: Company Registration with SECP

To begin with, the company must be incorporated with the Securities and Exchange Commission of Pakistan (SECP). This step legally establishes the company in Pakistan.

At this stage, the following documents are required:

• Certificate of incorporation of the Chinese parent company

• Memorandum and Articles of Association

• Board resolution approving the Pakistan subsidiary

• Passport copies of directors and shareholders

• Local registered office address

Importantly, all Chinese documents must be notarized and attested. Otherwise, delays may occur.

Step 2: Foreign Company Registration in Pakistan for Tax Purposes

After incorporation, the company must register with the Federal Board of Revenue (FBR). Consequently, the company receives a National Tax Number (NTN).

In addition, sales tax registration may be required depending on business activity. Therefore, early tax planning helps avoid compliance issues later.

Step 3: Bank Account Opening for Chinese Company in Pakistan

Next, a corporate bank account is opened in Pakistan. This account is used for capital injection, expenses, and receiving payments.

However, banks conduct strict due diligence. As a result, proper documentation and clear ownership structure are essential for approval.

Step 4: Capital Injection and Foreign Exchange Compliance

Once the bank account is active, foreign capital is injected through legal banking channels. Accordingly, this allows lawful profit repatriation and dividend payments in the future.

Failure to follow foreign exchange rules can cause serious issues. Therefore, compliance at this stage is critical.

Ongoing Compliance After Registration

After registration, Chinese companies must continue to meet legal requirements. For example:

• Annual filings with SECP

• Corporate tax returns

• Sales tax and withholding tax filings

• Labour and social security registrations

If these obligations are ignored, penalties may apply. Hence, regular compliance is strongly advised.

Common Mistakes Chinese Investors Should Avoid

Although the process is straightforward, some common mistakes still occur. For instance:

• Choosing a branch office instead of a subsidiary

• Incomplete attestation of documents

• Weak tax planning

• Ignoring foreign exchange rules

Therefore, professional legal guidance helps avoid delays and regulatory problems.

Final Thoughts on Registering a Chinese Company in Pakistan

In conclusion, Pakistan offers a clear and investor-friendly framework for Chinese companies. However, the success of your entry depends on proper legal structuring and compliance.

A correctly registered wholly owned subsidiary in Pakistan provides long-term stability, operational freedom, and legal protection. As a result, it remains the preferred option for most Chinese investors.

Chinese investors setting up operations often require ongoing corporate and commercial legal support, including contract drafting and regulatory compliance, which is covered under our
Agreements & Contracts

Moreover, proper tax registration and compliance in Pakistan is essential for foreign-owned entities and is handled under our
Business Taxation Law 

Foreign investment also involves strict banking and foreign exchange compliance, an area advised through our
Banking Law