Now minimum number of director required to establish a company has reduced to one director. Hence an individual can form a company and enjoy the advantage of limited liability without joining hands with anyone and without sharing profit and ownership of the corporate entity. Through the enforcement SMC Rules, 2003 the concept of single member company was introduced in Pakistan. Before the commencement of Single Member Companies Rules, 2003, a single individual was not allowed to solely establish a business in a company form. Sole proprietorship is ancient form of business organization. It is as old as civilization. Most of businesses around us are managed, owned and controlled by single individuals
Two or more persons can form a private limited company , being a corporate entity chance to gain the confidence of customers, supplier and other stakeholders increase significantly
We offer service of registration of Private Limited Company; we have formulated uncountable companies in a very short period.
A foreigner desirous to invest in Pakistan cannot form a single member company; hence the option of forming a private company with a Pakistani national is a good option. As minimum as one share is required to become director in a private limited company, so by sharing only one share with a Pakistani national a foreigner can invest in Pakistan.
Three or more than three person desirous to form a company to offer shares to general public may form a public company. Although a public company has to fulfill much legal formalities but a public company can offer its share to general public. Minimum three directors are required to form unlisted company, an unlisted company can offer shares to general public on its counter, but shares cannot be traded in stock market.
Minimum seven directors are required to form listed company, a listed company can offer shares to general public and shares can be traded in stock market.
Foreign national or foreign company desirous to invest in Pakistan can also become part of a public company, instead of registering as a foreign company . Collaboration with a foreign company enhances the local investors’ confidence on the company. Incorporation cost and time of registration being a Pakistani public company is much lesser than registering as a foreign company.
Further all advantages of public companies can be obtained by the foreign investors by this way.
Foreign Companies which are planning to do business in Pakistan but not willing to get registered as a company, may opt to establish a liaison office or branch office.
Branch Office is established by a foreign company to fulfill its contractual obligations with the public or private sector in Pakistan. Their activity will be restricted to the work mentioned in the agreement / contract signed. However branch office cannot indulge in commercial / trading activities.
Liaison Office is established by a foreign company for promotion of products(s), provision of technical advice & assistance, exploring the possibility of Joint Collaboration and export promotion.
A foreign company may establish its locally incorporated subsidiary with 100% equity. A foreign company can indulge in all activities , there are only few areas, relating to national security, in which a foreign company cannot make investment.
Partnership Firm Registration
Partnership form of business has its own pros and cons; it’s mainly suitable for small level business. Two or more person agreed to share the profit of a business carried on by all or any of them acting for all can form a partnership firm.
Partnership Act, 1932, deals with all affairs relating to partnership firms , for instance dissolution of firms, retirement and death of partners and auxiliary issues.
Partnership asstated in the Partnership Act 1932, defines it in the following terms:
“the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.” Minimum two and maximum twenty persons in any partnership business mutually decide to run a business collectively where they
Some cases companies also form partnerships. Companies can form a partnership to achieve common objectives through merger of resources in pursuit of long. This type of partnership may be termed as joint venture and taxed as AOP.
Normally people mix up term partnership with Association of Person (AOP) , however AOP is broader concept and used in tax law to deal with tax matters relating to joint ventures , profit sharing ventures and alike group of persons.
Our services relating to partnership registration are as follows:
Accredited Registration and Certifications
Intellectual Property Organization (IPO) Registration