In Pakistan, several foreign companies are coming in a registration net every year. In recent years several foreign companies have been registered in Pakistan, particularly companies from the Germany, China, Italy, Canada, Turkey, Japan, Korea, France, USA, UK and also other countries making investments in Pakistan and started their Branch offices and liaison offices in all over the Pakistan.
The process of foreign company registration is arduous and lengthy compared to the process of Pakistan’s local private limited company. It involves three steps described as follows;
- Obtain permission from the board of investment
- Seeking availability of Company name
- Filling of documents.
Step.1 Obtain permission from the board of investment:
A foreign company must obtain a permission letter from the Board of Investment with a specific validity period for opening and maintaining its branch or liaison office in Pakistan.
Copy of such permission letter is mandatory to be filled along with documents of registration.
For the opening of branch or liaison office following documents are required to be filled:
Request letter for closure,
Activity Report, Proceeds Realization Certificates, and Audited Accounts for the last permitted period,
Copies of press clippings relating to closure, published in two national dailies,
Confirmation from tax authorities that all Assessments and dues are precise.
Renewal or extension of the permission
For renewal or extension to open or maintain a branch office and liaison office, the company must obtain permission from the Board of Investment to terminate the validity period of the license granted initially. Once renewal or extension is granted, a copy must be furnished to the concerned registrar.
Step 2. Seeking availability of name of the company:
The second step in registering a Foreign Company is to search for the available name of the projected company from the registrar.
The proposed name of the said company should not be:
- Aimed to exploit or offend the religious feelings of the people.
- Similar or having a close resemblance with a company already in existence.
- Suggesting the link with any Government or its organization or any international organization
Step 3. The Documentation:
After seeking the availability of company name, the next step is filling in documents. A foreign company (under the provisions of the Ordinance) has a compulsion to file the following documents within thirty days of establishment of its place of business in Pakistan, to the concerned registrar:
Forms (38-43) as prescribed in the Rules:
Form 38: Certified copy of the deed, statute, Memorandum and Articles of the respective company.
Form 39: Address of registered office or address of the principal office of the company.
Form 40: Particulars of directors, CEO, and Secretary of the company, if any.
Form 41: Particulars of the principal officer of the company in Pakistan.
Form 42: Particulars of a person resident in Pakistan authorized to take services on behalf of the foreign company and the certified copy of the appointment order, authority letter of the board of directors' resolution, and consent of the principal officer.
Form 43: Address of principal place of business in Pakistan of the foreign company.
Authority letter in the name of an authorized representative of the foreign company.
And a fee Challan.
All foreign documents will be attested from Notary Public, Pakistani High Commission, Foreign Office. In case, documents are other than in English, they must be attested, translated, and certified by authorities, as mentioned above.