FAQs – Tax & Corporate Services (Pakistan)
NTN Registration
What is an NTN and who is required to obtain it in Pakistan? A National Tax Number
(NTN) is a unique identifier issued by FBR to all taxpayers. It is mandatory for individuals earning taxable income, sole proprietors, AOPs/partnerships, and all registered companies. Without an NTN you cannot file tax returns, appear on the Active Taxpayers List, open a business bank account, or engage in import/export.
What documents are required for NTN registration for an individual, AOP, and company?
- Individual: Valid CNIC, mobile number linked to CNIC, email, residential address.
- AOP/Firm: CNICs of all partners, registered partnership deed, business address.
- Company: SECP Certificate of Incorporation, Memorandum & Articles of Association, CNICs of all directors, company registered address. We compile and submit all documentation on your behalf for error-free registration.
Income Tax Return Filing
What is the deadline to file Income Tax Returns in Pakistan and what happens if I miss it?
Individuals & AOPs must file by 30th September; companies must file by 31st December. Missing the deadline results in a Surcharge of Rs. 1,000 for Individuals & AOPs and Rs. 10,000/- for Companies. Along with Offences & Penalties under Section 182, removal from the ATL causing doubled withholding tax rates, and loss of the ability to carry forward business losses.
Who needs to file an Income Tax Return — salaried, business, or company?
Every person whose income exceeds Rs. 600,000 (salaried), all business owners (sole proprietors, freelancers, traders), all AOPs/partnerships regardless of income, and all registered companies. Also mandatory for anyone owning foreign assets, immovable property, or holding a professional license. Even filing a nil return keeps you on the ATL and saves you from higher withholding tax rates.
What is the benefit of being on the FBR Active Taxpayers List (ATL
ATL filers enjoy significantly lower withholding tax rates — for example, 0% vs. 0.8% on banking transactions, reduced taxes on property purchase/sale and vehicle registration, lower dividend and profit tax rates, and eligibility for government tenders and import/export licenses.
Sales Tax Registration & Return Filing
Who is required to register for Sales Tax with FBR in Pakistan?
Under the Sales Tax Act, 1990, registration is mandatory for all manufacturers, importers, wholesalers, and distributors, as well as retailers with an annual turnover exceeding Rs. 10 million. Voluntary registration is also available for those below the threshold — it enables input tax adjustment and enhances business credibility with corporate buyers
How often must Sales Tax Returns be filed and what are the penalties for late filing?
Sales Tax Returns must be filed monthly, with tax payment due by the 15th and return submission by the 18th of the following month via FBR's IRIS portal. Late filing attracts a fixed penalty of Rs. 10,000 for the first default and Rs. 50,000 for subsequent defaults, along with default surcharge at KIBOR + 3% per annum on outstanding amounts. Persistent non-compliance may result in suspension or blacklisting of your Sales Tax registration.
What is Provincial Sales Tax (PST) and how is it different from Federal Sales Tax?
In Pakistan, Federal GST (administered by FBR) applies to the supply of goods, while Provincial Sales Tax on Services is levied separately by each province — PRA (Punjab), SRB (Sindh), KPRA (KPK), and BRA (Baluchistan). Businesses in Islamabad Capital Territory fall under FBR's jurisdiction for services. Businesses providing IT, consulting, restaurant, hotel, or other taxable services must register with their relevant provincial authority. Since rates and exemptions vary across provinces, multi-province operations require careful compliance management..
Withholding Tax (WHT)
What is Withholding Tax and what are the obligations of a withholding agent in Pakistan?
WHT is a mechanism where the payer deducts tax before remitting payment to the payee. Withholding agents (companies, AOPs, employers, banks, government departments) must deduct WHT on salary, rent, services, contracts, dividends, etc., deposit it with the government on time, issue deduction certificates, and file monthly WHT statements by the 15th of the following month.
What is the WHT Tax Card 2025–26 and how does it help businesses?
The WHT Tax Card is a quick reference guide listing all applicable WHT rates across sections of the Income Tax Ordinance 2001 — covering salary (Sec. 149), suppliers/contractors (Sec. 153), rent (Sec. 155), dividends (Sec. 150), cash withdrawals (Sec. 231A), and more — with separate rates for filers vs. non-filers. We provide the latest Tax Card to clients and advise on correct rate application to avoid under-deduction penalties.
Private Company Registration (SECP)
What is the process for registering a Private Limited Company in Pakistan with SECP?
The key steps are: (1) Name availability search & reservation on SECP Leap Portal, (2) Drafting MOA & AOA, (3) Filing Form-I online with directors' CNICs and registered address, (4) Payment of SECP incorporation fees, (5) Receipt of Certificate of Incorporation, (6) FBR NTN and Sales Tax registration, (7) Opening of corporate bank account. The entire process typically takes 2–5 working days. Minimum 2 directors and 2 shareholders are required.
What is the difference between a Private Limited Company, Sole Proprietorship, and AOP/Partnership?
- Sole Proprietorship: Single owner, no separate legal entity, unlimited personal liability, simplest setup.
- AOP/Partnership: 2+ persons, governed by a partnership deed, partners share unlimited liability.
- Private Limited Company: Separate legal entity, limited liability, regulated by SECP — best suited for businesses seeking investment, corporate contracts, or long-term scaling. We advise on the right structure based on your business nature, tax impact, and growth plans.
Annual Return Filing (SECP)
What is the Annual Return of a company and when must it be filed with SECP?
Under Section 130 of the Companies Act 2017, every registered company must file an Annual Return with SECP within 30 days of the AGM. It includes the updated list of directors, shareholding, registered address, share capital details, and audited financial statements. Failure to file results in daily penalties and the company being marked as a defaulter.
What changes must a company report to SECP during the year beyond the Annual Return?
After incorporation, companies must report all statutory changes — including change of directors, registered office address, share transfers, increase in authorized capital, and change of auditors — to SECP through its Leap portal within the prescribed timeframe. A name change requires passing a special resolution followed by SECP approval. Timely filing of all changes is essential to avoid penalties and maintain good standing with SECP.
Partnership / AOP Registration
How is an AOP or Partnership Firm registered in Pakistan?
Through two channels:
(1) FBR registration — draft and execute a partnership deed on stamp paper, then register the AOP with FBR to obtain an NTN;
(2) Registrar of Firms (optional but recommended) — provides legal standing, enables the firm to sue in its own name, and is required by many banks to open a firm bank account. We draft legally sound partnership deeds and handle all filings.
How is an AOP taxed differently from a company or individual?
An AOP files its own income tax return and is taxed at individual slab rates. The AOP pays the tax; partners do not pay separately on their AOP share (avoiding double taxation). Each partner must still file their own personal return disclosing their share. AOPs face no super tax (unlike large companies) and often enjoy a more favorable effective tax rate for small and medium businesses
Sectorial & Corporate Services
What sectorial licenses and registrations does your firm assist with beyond NTN and SECP?
We assist with: PRA/SRB/KPRA/BRA provincial sales tax registration, EOBI & PESSI/SESSI employer registrations, PSEB registration for IT companies (for tax exemptions), IPO Pakistan trademark/patent/copyright registration, Chamber of Commerce membership, DRAP registration for pharmaceutical businesses, and import/export license facilitation.
How can I register a trademark or protect my intellectual property through IPO Pakistan?
The trademark registration process with IPO Pakistan involves: (1) trademark availability search, (2) application filing under the relevant class, (3) IPO examination (objections addressed if raised), (4) publication in the Trade Marks Journal for a 60-day opposition period, and (5) issuance of registration certificate valid for 10 years (renewable). A registered trademark gives you exclusive legal rights to your brand name and logo in Pakistan. We guide you through every step.
Sole Proprietor Registration
How do I register as a Sole Proprietor in Pakistan and what registrations are needed?
A sole proprietor operates under their own name or a trade name. Required registrations include: FBR NTN (mandatory), Sales Tax with FBR (if selling taxable goods above threshold), Provincial Sales Tax (if providing taxable services There is no SECP registration for sole proprietorships. Banks require NTN, CNIC, and business address proof to open an account. We handle all of these quickly and affordably.
What ongoing annual compliance is required after company/firm registration in Pakistan?
- Monthly: Sales Tax Returns (FBR/Provincial), WHT statements, payroll deductions
- Quarterly: Advance tax payments (where applicable)
- Annually: Income Tax Return (entity + directors/partners), SECP Annual Return, AGM, financial statements
- Ongoing: Report any director, shareholder, address, or capital changes to SECP within prescribed timelines; EOBI/SESSI/Workers' Welfare contributions Non-compliance accumulates penalties and risks deregistration. Our annual compliance retainer packages ensure you never miss a deadline.