Starting a Business · Pakistan
Starting a business in Pakistan: foreigner's guide (2026)
Pakistan shaded by its starting a business status
Pakistan permits up to 100% foreign ownership in most sectors, with company registration handled digitally through SECP's eServices portal and typically completable within one week. However, foreign investors must navigate multiple post-incorporation registrations across several agencies (FBR, EOBI, Provincial Labour/Tax departments), and certain sectors—including banking, media, agriculture, and defence-related industries—carry specific ownership caps or restrictions.
Key points
100% foreign equity is permitted in most sectors. Fully restricted sectors are arms & ammunition, high explosives, radioactive substances, security printing/currency/mint, and consumable alcohol. Sector-specific caps apply to banking, media, and agriculture.
The Companies Act 2017 sets no statutory minimum paid-up capital for private limited companies; a practical floor of PKR 100,000 (~USD 350) is conventional. Public limited companies require PKR 200 million (~USD 700,000). Banking and other regulated sectors carry separate, higher capital requirements.
The SECP eServices portal provides an end-to-end digitised four-step process: (1) user/promoter account registration with passport details; (2) company name reservation; (3) data entry and PIN-signing of incorporation form; (4) fee payment via card/internet banking. The full SECP registration can be completed in under one day online, with certificate issuance typically within one week.
Beyond SECP, companies must separately obtain a National Tax Number (NTN) from the Federal Board of Revenue (FBR), register with the Federal Employees Old-Age Benefits Institution (EOBI) if employing five or more staff, and register with the Provincial Excise & Taxation Department for professional tax. SECP's virtual one-stop shop on its eServices portal allows simultaneous submission for several of these.
A foreign company wishing to operate without incorporating a local entity may instead obtain a Branch Office or Liaison Office permission from the BOI. Permission is granted for 1–5 years (renewable) and carries government fees of USD 3,000 (Branch) or USD 2,000 (Liaison) for the initial year. Required documents include the foreign company's charter, certificate of incorporation, and directors' passport copies.
The Companies Regulations 2024 (updated to July 2025, reviewed April 2026) introduced enhanced beneficial-ownership disclosure requirements. The BOI has designated food & beverages, IT/ITeS, auto parts, logistics, and value-added textiles as priority sectors eligible for facilitation services.
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Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →