3 Essential Legal Papers Every Pakistani Business Needs in 2025

Starting a business in Pakistan is exciting, but without the right legal documents, you could face serious compliance issues. Whether you’re running a startup, a small shop, or a growing company, having the proper paperwork ensures your business stays legal and earns the trust of customers, investors, and financial institutions. In this guide, we’ll explain the 3 most important legal documents every business in Pakistan must have, why they matter, and how to get them step by step.

Why Do Businesses in Pakistan Need Legal Documents?

Operating a business without proper legal documents can lead to heavy fines, missed opportunities, and even closure. Here’s why these documents matter:

• ✅ Avoid Legal Trouble: Stay on the right side of the law by meeting government requirements.

• ✅ Build Credibility: Clients and partners trust businesses that are officially registered.

• ✅ Get Bank Support: Banks require legal proof for opening accounts and processing loans.

• ✅ Access Government Incentives: Registered businesses qualify for tax benefits and special schemes.

1. Company Incorporation Certificate from SECP

What Is It?

This is the official certificate issued by the Securities and Exchange Commission of Pakistan (SECP) confirming your company’s registration.

Who Should Get It?

• Private Limited Companies

• Single Member Companies

• Public Limited Companies
  Sole proprietors don’t need an SECP certificate, but they still need tax registration.

Why It’s Important

• ✅ Protects your brand name legally

• ✅ Lets you open a business bank account

• ✅ Builds trust with corporate clients and investors

• ✅ Required for contracts and tenders

How to Get It

1. Reserve a Business Name: Apply through SECP’s online portal (e-Services).

2. Prepare Documents: Memorandum of Association, Articles of Association, and CNIC copies of directors.

3. Submit Online: Upload documents on the SECP portal.

4. Pay the Fee: Based on your company type (starts around PKR 1,500).

5. Receive Certificate: Usually issued within 2–3 business days.

Cost in 2025

• Single Member Company: Around PKR 1,500 – 2,000

• Private Limited Company: Around PKR 2,000 – 5,000

2. National Tax Number (NTN) from FBR

What Is It?

The NTN is issued by the Federal Board of Revenue (FBR). It’s your official tax registration number and is mandatory for filing returns.

Who Needs It?

• All registered companies

• Sole proprietors earning taxable income

• Partnerships and associations

Why It’s Important

• ✅ Allows you to file tax returns legally

• ✅ Needed for business banking

• ✅ Mandatory for official contracts and tenders

How to Get It

1. Register on IRIS: FBR’s online system.

2. Provide Information: CNIC, business address, and bank details.

3. Submit Application: Through IRIS portal.

4. Receive NTN: Issued electronically after verification.

Cost

The NTN itself is free, but consultants may charge a small service fee.

3. Sales Tax Registration (If Your Business Qualifies)

What Is It?

Sales Tax Registration is necessary if your business sells taxable goods or services above the threshold set by FBR (currently PKR 10 million for goods and PKR 5 million for services).

Who Needs It?

• Retailers and wholesalers

• Service-based businesses

• Importers and manufacturers

Why It’s Important

• ✅ Lets you legally charge sales tax

• ✅ Helps claim input tax refunds

• ✅ Required for B2B transactions

How to Get It

1. Log into IRIS: Using your NTN credentials.

2. Apply for STRN: Fill out the Sales Tax Registration form.

3. Upload Documents: CNIC, bank details, and proof of address.

4. Approval: Issued by FBR after verification.

Cost

No government fee, but professional charges may apply.

Other Legal Requirements You Should Know

While these three are essential, other important documents include:

• Trade License from local authority

• Professional Tax Registration

• Social Security Registration (if you have employees)

• Trademark and Intellectual Property Registration

Common Mistakes to Avoid

• Using personal accounts for business transactions

• Ignoring annual filings with SECP and FBR

• Delaying license renewals

• Operating without proper registrations

Conclusion

To keep your business legal and credible in Pakistan, you need:

1. Company Incorporation Certificate (SECP)

2. National Tax Number (FBR)

3. Sales Tax Registration (if applicable)
   Having these documents ensures your business stays compliant, builds trust, and opens doors to growth in 2025 and beyond.