Pakistan
Incorporate a Pakistan Pvt Ltd in 1–3 days via SECP eServices — 29% CIT or 0% in SEZs for 10 years. Compare verified specialists and providers.
Foreign Ownership Eligibility
Pakistan welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors — no local partner required under the Foreign Private Investment Act, 1976
- No minimum paid-up capital required to incorporate a Pvt Ltd or SMC under the Companies Act, 2017
- Single-person company (SMC) permitted — one foreign national can be sole director and sole shareholder
- Company secretary is mandatory for all Pvt Ltd and SMC entities under the Companies Act, 2017
- Dual registration required: SECP for incorporation + BOI for repatriation rights and CPEC SEZ access
- Foreign shareholders' documents (passport, proof of address) typically require notarisation for SECP filing
- Sector restrictions apply — agriculture land ownership, mass media broadcasting (capped at 20%), and defence production are restricted
- Provincial business registration required in each province of operation in addition to SECP incorporation
Ownership
100% Foreign OK
Formation
100% Remote
Note
Physical presence is NOT required for SECP incorporation — but IS required to open a corporate bank account. No Pakistani bank currently offers fully remote corporate account opening for foreign-owned companies. Plan for an in-person banking visit or authorise a local representative with notarised power of attorney.
Tax at a glance
Pakistan Tax Overview
29%
Standard corporate income tax
Applies to standard private and public limited companies; fiscal year typically July 1 – June 30
20%
Small company rate
Companies with paid-up capital below PKR 25 million meeting additional qualifying conditions under the Income Tax Ordinance, 2001
0%
SEZ enterprises — first 10 years
Companies operating inside Pakistan's designated Special Economic Zones (SEZ Act, 2012) are exempt from corporate income tax for the first 10 years of operation
0.25% WHT
PSEB IT export income (till TY 2026)
IT and software export companies registered with PSEB pay 0.25% withholding tax as a final tax on export income through Tax Year 2026 under Finance Act, 2024
1%
PSEB IT export minimum tax (from TY 2027)
Minimum tax on IT/software export income increases to 1% from Tax Year 2027 per Finance Act, 2024
39%
Banking companies CIT
Higher corporate income tax rate applicable to banking companies
18%
Sales Tax (VAT equivalent)
Federal sales tax on goods; provincial sales tax on services. Monthly filing by the 15th of the following month via FBR portal
15%
Withholding tax on dividends
Final or adjustable depending on recipient type; applies to resident and non-resident shareholders. Applicable tax treaty may reduce rate
10%
Super Tax (income >PKR 500M)
Tiered levy starting at 1% on income above PKR 150M; reaches 10% on income exceeding PKR 500M for banking, large industrial, and insurance sectors
47+
Bilateral Investment Treaties (BITs)
Pakistan has BITs with 47+ countries and is an ICSID signatory — foreign investors benefit from international arbitration protection
31 Dec
Corporate income tax return deadline
For companies with a June 30 fiscal year end; filed via FBR IRIS portal
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership permitted in most sectors under the Foreign Private Investment (Promotion and Protection) Act, 1976 — no mandatory local partner required. A foreign national can be the only director and shareholder of a Pakistan Pvt Ltd.
SECP eServices digital registration issues a Certificate of Incorporation in 1–3 business days for a standard Pvt Ltd — one of the fastest incorporation timelines in Asia, faster than India or Bangladesh.
Special Economic Zones under the SEZ Act, 2012 offer a 10-year corporate income tax holiday (0% CIT) for zone enterprises, plus customs duty exemptions and 5-year machinery import exemptions. Pakistan's 9 CPEC-linked SEZs are accessible to foreign investors.
IT and software export companies registered with PSEB pay only 0.25% withholding tax as a final tax on export income through Tax Year 2026 — among the lowest effective rates for tech export operations globally.
240+ million population with a median age of approximately 22 years — one of the world's largest and youngest consumer markets.
Large, English-speaking technology talent pool. Karachi, Lahore, and Islamabad are established tech hubs with a growing freelancer and software export workforce.
Pakistan has Bilateral Investment Treaties (BITs) with 47+ countries and is a signatory to ICSID — foreign investors benefit from international arbitration protection and treaty-backed investment security.
CPEC (China-Pakistan Economic Corridor) represents USD 60+ billion in infrastructure investment, connecting Gwadar deep-sea port to China's Xinjiang province — linking Central Asia, South Asia, and the Middle East.
2024 IMF Extended Fund Facility: inflation moderated to approximately 7% in 2025 after peaking at 37%+ in 2023.
Common law legal system with English-language commercial courts and contracts — familiar framework for investors from the UK, USA, India, UAE, and Commonwealth jurisdictions.
Considerations
Pakistani Rupee (PKR) has depreciated more than 60% against the USD since 2018. Unhedged PKR exposure carries significant devaluation risk for USD-reporting businesses.
Super Tax applies to large companies: income above PKR 500 million is subject to up to 10% additional levy on top of the 29% standard CIT, pushing the effective peak combined rate to approximately 39% for high-income entities in banking, large industrial, and insurance sectors.
Complex multi-layer tax compliance: federal taxes (FBR: income tax, sales tax, withholding tax) plus four provincial revenue authorities (Punjab, Sindh, KP, Balochistan) each with separate registration and filing requirements. Without a local accountant, the filing calendar is genuinely difficult to manage.
Frequent load-shedding and unreliable industrial energy supply in some regions — a material operational risk for manufacturing and data-centre businesses outside major urban zones or designated SEZs.
Security concerns vary significantly by region. Some areas carry elevated risk for expatriate personnel. Investors must assess the specific geography of their operations before commitment.
Contract enforcement is slow: the World Bank Doing Business 2020 report ranked Pakistan 156th out of 190 countries for enforcing contracts — indicating judicial inefficiency as a material risk for commercial disputes.
SBP approval is required for foreign currency remittances exceeding USD 100,000. Pakistan has experienced periods of foreign exchange shortage, which can restrict repatriation despite the legal right to repatriate profits.
Multiple federal and provincial registrations are required: SECP (incorporation), FBR (NTN, sales tax), BOI (for repatriation rights), and provincial revenue authorities. Inconsistent enforcement across provinces adds unpredictability to the regulatory environment.
Structural Comparison
Private Limited Company (Pvt. Ltd.)
Single Member Company (SMC)
Branch of a Foreign Company
Liaison / Representative Office
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to confirm the right entity structure (Pvt Ltd, SMC, Branch, or Liaison), clarify sector restrictions, and outline realistic costs and timelines for your investment type.
Name availability search via the SECP eServices portal — results are immediate. Reserve your company name while documents are prepared.
Prepare incorporation documents: Memorandum of Association (MoA), Articles of Association (AoA), and Form 1 (Application for Incorporation). Foreign shareholders must notarise relevant documents; apostille requirements depend on the applicant's home country.
XBandGlobal's Pakistan partner submits the full application package to SECP via the eServices portal at eservices.secp.gov.pk.
SECP reviews and issues the Certificate of Incorporation — typically within 1–3 business days for digital submissions. You receive your official company registration number.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government registration fees in Pakistan are among the lowest in Asia — total SECP costs for a standard Pvt Ltd can be under USD 50. The real cost is professional services (incorporation agent, document notarisation, BOI consultant) and the time required for in-person banking. For companies pursuing SEZ or CPEC investment routes, specialist legal and BOI advisory support is effectively mandatory, adding USD 1,500–5,000 to your setup budget.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Pakistan setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Pakistan. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Habib Bank Limited (HBL) | Local commercial bank | Low (Visit Required) | Pakistan's largest private bank by assets and branch network. Widely used by foreign-owned companies for local operations and cross-border transactions. In-person KYC required. |
| MCB Bank Limited | Local commercial bank | Low (Visit Required) | One of Pakistan's largest private sector banks. Active trade finance and SME banking division. In-person KYC required for new corporate account opening. |
| United Bank Limited (UBL) | Local commercial bank | Low (Visit Required) | Major private sector bank with significant international presence including the UAE, UK, and USA. Good for cross-border transfers. In-person visit required. |
| National Bank of Pakistan (NBP) | State-owned commercial bank | Low (Visit Required) | Largest bank in Pakistan by total assets. Government-owned. Extensive branch network including overseas branches. Used by many government-linked and BOI-registered businesses. |
| Standard Chartered Bank Pakistan | International commercial bank | Low (Visit Required) | Familiar infrastructure for multinationals with existing Standard Chartered global relationships. Handles trade finance and cross-border transactions well. Thorough AML/KYC process; in-person visit required. |
| Bank Alfalah Limited | Local commercial bank | Low (Visit Required) | Strong SME and corporate banking offering with a growing digital platform. Abu Dhabi Group ownership provides regional connectivity for Gulf-based investors. In-person KYC required. |
| Meezan Bank Limited | Islamic commercial bank | Low (Visit Required) | Pakistan's largest Islamic bank. Sharia-compliant corporate banking products available — relevant for Gulf sovereign, Saudi, and UAE investors seeking halal banking structures. In-person visit required. |
Frequently Asked
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