Company Registration in Pakistan

According to the Companies Ordinance, 1984 there can be three different types of companies:

• A company limited by shares
• A company limited by guarantee
• An unlimited liability company

The following steps needs to be followed to create and register a company in Pakistan.

1. Seek approval on name of the company

The first step towards incorporation of a company is to seek the “availability of name” for the proposed company from the concerned registrar of companies. Although, it sounds simple enough, but there are certain prohibitions and restrictions, the applicants have to look into while choosing a name for a company.  This is the guideline for choosing a name.

2. Pay fee’s  associated with incorporation and registration of the company

Post receiving the name availability certificate  from SECP , the applicants have to file an  application for incorporation. The fees associated with the process  can be paid using the relevant bank form at designated branches of The Muslim Commercial Bank(MCB) in Pakistan.

Post payment of the fee, SECP then requires the applicant to submit the following documents

• Declaration of compliance
• Identification of office’s location
• Particulars of directors, secretary, chief accountant, auditors and other
• Copies of  the Memorandum and Articles of Association with each member’s signature, where:

Memorandum of Association explains your business sector of the company e.g. Institution, Travel agency, Trading or manufacturing, Supply or chain of stores. To put simply, MOA tells about the relationship of your company with the outside world.

Articles of Association lets know about the day-to-day proceedings within the company i.e. what role CEO and directors would play, business concerned meetings and the appointments of employees, in short- how the company will run.

3. Obtain  a digital signature and create a company seal

The signature is granted by National Institutional Facilitation Technologies (NIFT) and can be obtained by using the electronic services of the SECP. After the certificate of incorporation is issued, the company representatives may be  required to present a company seal, depending on the where the business will be head quartered or started. Some states also require a corporation to have a corporate seal, which is also sometimes referred as company seal.

4. Register for Income, Sales and Professional Taxes

To register for Income tax, the company will have to  to apply for a National Tax Number (NTN) at the tax facilitation of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). The requirements for this application include

• NTN form
• Proof of registration
• Memorandum and Articles of association
• Bank account number
• Copies of National Identity Cards (NICs) of companies’ Directors
• An attestation of business address

Sales tax, like the income tax can be registered for, by applying for a Sales Tax Number (STN) at the tax facilitation centre of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR). For the professional tax, provided it applies, the company will have to register with Exercise and Taxation (ET) Department of the District.

5. Register with ESSI and EOBI

Depending on the location of the business, the company will  need to register with

• Punjab Employees Social Security Institutions (PESSI)
• Sindh Employees Social Security Institution (SESSI)
• Likewise (BESSI) or (KPKESSI) for Balochistan and Khyber Pakhtunkhwa respectively.

Under the Employees Old Age Benefits Institution (EOBI), insured employees are entitled to a pension, upon retirement, invalidity in the case of disability, old-age grant and survivor’s pension. Every industry or a commercial establishment with five or more employees has to be registered with the Federal Employees Old age Benefits Institution (EOBI).

6. Register with the Labor Department of the District

To safeguard the labor standard of the workers, all company’s are required to registration with the District Chief Inspector of the labor department in each district. For registration, employer must submit the application form A accompanied with the relevant bank form.

Once these requirements are met and vetted by SECP, the company is then ready to become an independent operating body in Pakistan and will be treated as such.

Source:

 http://pakwired.com/registering-company-pakistan/





For Registration


Email:    altaf012@live.com

Law of Inheritance in Pakistan

According to Islamic law, legal heirs that are blood relations have a right to a share in property after the death of a person. There are specific verses in Surah An-Nisa which mention the exact formula that must be followed to determine the share in inheritance.
Kinds of property
There are two kinds of properties that the legal heirs have the right to get: movable property, which includes cash and stock, and immoveable property, which includes land, house and vehicle.
Three documents are necessary to get share in a property: a death certificate issued by the municipality, a succession certificate issued by a court and a receipt issued by the local graveyard.
The succession certificate allows legal heirs to establish ownership of movable assets, such as bank deposits, certificates and bonds, stocks, insurance amount, etc. The legal heirs need a death certificate of the deceased along with details of subject assets, computerised national identity card of the legal heirs filing the application and to furnish the requisite surety.
Similarly, heirship certificates are used to determine the inheritance of property in the absence of a will of a deceased person in many foreign jurisdictions. The certificates are used in a situation where there is no dispute regarding the succession of the estate. If there is anyone who believes that he or she, too, is a legal heir, the legal heirship certificate will be denied and the appropriate proceedings will be instituted in court.
Heirship certificates are used during the probate process which can be issued to receive payments that the government owes to the heirs of the deceased person, and other areas of inheritance. It is an informal and non-binding certificate and may be challenged in court if a dispute should arise as to heirship of the estate. When employing a legal heirship certificate, the person who makes the affidavit should be certain there are no disputes between the parties who assert claims to the estate of the deceased.
Ownerless property
Any property that has no rightful owner will go to the province or the federal government under Article 172 of the Constitution. In Pakistan, few cases are reported that are about properties with owners, said Barrister Afzal Hussain, who deals with inheritance cases in Islamabad courts.
He explained that the majority of people are unaware of inheritance rights and hire lawyers to get property. In most cases, daughters and sisters surrender their inheritance rights, he added.
Last will
The will left by the deceased plays an important role in inheritance rights. According to Islamic laws, the will is a legal document that confers the interest up to a maximum of one-third of the entire property. Anything more than one-third can be challenged by the legal heirs in court.
The will is applicable to those people who are otherwise not entitled to a share under the law.
If any department refuses the right of the deceased, such as pension and old-age benefits, the deceased’s family can challenge it in the labour court by filing a grievance petition.
For those living abroad and fighting inheritance cases in Pakistan, the law allows them to give power of attorney to someone else. The Pakistani embassy or consulate will first attest the document before it is verified by the Foreign Office and then it can be submitted in court.

Link:
 http://tribune.com.pk/story/797069/know-your-rights-inheritance-rights/