The information below summarizes the procedures and rough costs associated with setting up a business in Pakistan.
Bear in mind that the procedures may be changed at anytime and without notice, so please check with relevent authorities.

1. Choose a name proposed for the company and check if it is available at the Registrar of Companies. You should be able to accomplish this in one day at a cost of around 200PKR.

2. Pay the fee for procedures 1, 3 and 4, and obtain bank receipt and a copy of treasury challans, this should also be accomplished within a day no cost.

3. Have the Memorandum and Articles of Association stamped at the Treasury and obtain stamp paper on which the Declaration of Compliance is to be drafted. One day should be sufficient at a cost of 0.1% of authorized capital + PKR 200 + 2,000PKR

4. Register the company at the Registrar of Companies. This should take approximately 3 days. Cost to complete will be registration fee + PKR 200, filing fee per document, 4 documents + PKR 50 for the Certificate of Registration

5. Make a company seal, You should have it the next day costing around 1000PRK.

6. Register for the income tax and apply for a National Tax Number (NTN). Two days fees of 50PKR

7. Register for sales tax. takes two weeks, no fees.

8. Register for the Professional Tax with the local tax authority, one week and costs nothing.

9. Register with the Employee Social Security Institution. 2 weeks and no charge.

10. Register for old age benefits with Employees Old-Age Benefits Institution (EOBI). Two weeks no charge.

11. Register with Pakistan Shops & Establishment Ordinance, 1969. One week costs 39,000PKR

NOTE* Some of the Procedures can take place simultaneously. One thing no one mentions is "Rishwath" better known as a "Bribe" maybe required here and there to aid the process. This is something the British started off when they took India, but unfortunately it is integrated in society, in all walks of life and considered as the norm.


This table summarizes the procedures and costs associated with setting up a business in Pakistan.

-Rental (gross) per sq.ft. per month in Islamabad 65 PKR.
-Personal Income Tax 3.5% -30%  
-Sales Tax 15%  
-Minimum Conditions of Employment  
-Minimum wage : Rs 4,000 (US $ 66.67)  
-Paid maternity leave (max.) 90 days  
-Normal work hours 8 – 9 hours daily  
-Paid holidays (Gazetted) 11 days  
-Paid Annual Leave for Employees14 days  
-Paid Sick Leave for Employees16 days  
-Paid Casual Leave for Employees10 days  
-Statutory Contributions  
-Provident Fund Employer8.33%   Employee8.33%  
-Workers Welfare Fund  2% of the income exceeding Rs  
-Employees old-age benefits

-The old age benefits Act-1976 covers industrial, commercial & other establishments where employees are ten or more in number.