In Doing Business Report 2019 published in October 2018, Pakistan Ranking in Starting a Business indictor increased to 130 from 142 in 2018. 

Major reforms have been introduced to further improve Pakistan’s ranking in this area; 

Completed reforms

Fee Payments through 1 Link: Since September 2018 option for payment of fee for company incorporation and filing of statutory returns through 1 Link (internet & mobile banking and ATM) has been made available.

SECP eServices is integrated with Punjab Business Registration Portal (PBRP): Effective December 31, 2018, companies having registered office in the Province of Punjab, while submitting incorporation application through eServices, can opt for registration with following department(s) by providing some additional information

  • Punjab Employee Social Security Institution (PESSI);
  • Labor Department, Punjab;
  • Excise & Taxation Department, Punjab.

SECP eServices is integrated with Sindh Business Registration Portal (SBRP): Effective February 20, 2019, companies having registered office in the Province of Sindh, while submitting incorporation application through eServices, can opt for registration with following department (s) by providing some additional information;

  • Sindh Employees Social Security Institution (SESSI);
  • Labor Department, Sindh.
  • Excise, Taxation and Narcotics  Control Department, Sindh;

SECP eServices is integrated with Employees Old Age Benefits Institution (EOBI):  Effective January 29, 2019, a company can be registered with EOBI through eServcies by providing some additional information.

Certificate of Incorporation is being sent through e-mail instantly with company incorporation since March 05, 2019.

Effective April 10, 2019, User Registration Process (i.e. PIN generation) has been modified. Now applicant will be able to directly access the company registration page after completion of User Registration process.

Reforms in process

Amendment in Section 23 of the Companies Act, 2017 regarding requirement of common seal is under consideration.

Effect of completed reforms/data correction 

Above mentioned reforms (and some data correction) will significantly reduce procedures, time and cost recorded in Doing Business Report 2019 and improve our ranking in this indicator:

Procedures and time as reflected in 2019 report Current Positions/Impact of Reforms & data correction
ProcedureTime
1

Obtain PIN for company registration

Less than 1 day


Impact of Reform:  Merged with procedure no 2

2

Reserve the name, register company, pay incorporation fees, and obtain a
national tax number (NTN) on the Securities & Exchange Commission ofPakistan (SECP) e-portal

2 days

Impact of Reform:
Procedure:
Six (6) procedures reported in 2019  report i.e. Procedure no.1,2,7,8,9 and 10 can now be completed in a single step through SECP eServices https://eservices.secp.gov.pk/eServices/

Time: Time for 6 procedures is reduced to 0.5 day (half day) being a completely online process as per Doing Business methodology. Cost: Fee of Rs. 1,000 in case of registration with Labor Department Punjab has been waived off vide Punjab Shops and establishment Amendments Ordinance, 2018 dated 1-6-2018
3 Make a company seal
1 day

4
Open a bank account for tax registration

1 day
5

Finalize registration for a national tax number (NTN) and for income tax The authorized representative of the Company has to visit respective tax office to submit hard copy of the registration documents, provide thump imprint and complete bio-metric identification.
1 day
Data Correction:

NTN is being issued through SECP-FBR integrated online system. No need to visit FBR office for issuance of NTN.
FBR Notification no. C.No.1(62)/SS(BDT-IT)/2017/38993-R dated March 27, 2018 explains the detailed procedure.
The requirement of bio-metric identification is relevant only in case of Sales Tax Registration Number (STRN) not for NTN. Since integration of FBR-SECP in March 15, 2018 till March 15, 2019, NTN has been issued to 12,955 companies out of 13,341 companies incorporated in this period. In corresponding period last year only 4,093 companies registered with FBR for NTN.
6
Apply for a Sales Tax Registration Number (STRN) at the tax facilitationcenter of the Regional Tax
Office (RTO) of the Federal Board of Revenue(FBR) in Karachi

1 week
7
Register for Professional Tax with the Excise & Taxation Department of theDistrict


7 days (simultaneously)


  Impact of Reform:  Merged with procedure no 2
8

Register with the Sindh Employees Social Security Institution (SESSI)/ Punjab Employees Social Security Institution (PESSI)

7 days (simultaneously)


  Impact of Reform:  Merged with procedure no 2
9

Register with Employees Old-Age Benefits Institution (EOBI)

1 Week (simultaneously)


  Impact of Reform:  Merged with procedure no 2
10
Register under the West Pakistan Shops and Establishment Ordinance 1969 with the Labor Department of the District

7 days (simultaneously)


  Impact of Reform:  Merged with procedure no 2