Company Registration

A business being registered with the FBR as a Sole Proprietor, AOP, or Firm does not mean that it is a company. These forms of business may obtain tax registration and an NTN for their tax obligations, but a company is a separate legal structure registered with the Securities and Exchange Commission of Pakistan (SECP) under the applicable laws.

SECP provides different corporate structures, including Single Member Company (SMC), Private Limited Company, Public Limited Company, and Limited Liability Partnership (LLP). Depending on the purpose and nature of an organization, Non-Governmental Organizations (NGOs) and not-for-profit organizations may also be established under the applicable legal framework and may have different registration and regulatory requirements.

The tax treatment of a Sole Proprietor or AOP can differ significantly from that of a company registered with SECP. Depending on the size, revenue, nature, and future plans of a business, selecting the appropriate legal structure can help legally minimize the overall tax cost while maintaining proper compliance.

At Planet 360 Tax & Corporate Consultants, we assist businesses and organizations with company registration, SECP incorporation, NGO and not-for-profit registration, and related corporate compliance requirements.