Following types of business registrations are available in Pakistan:
- Sole Proprietor
- Partnership Firm
1. Sole Proprietor: The sole proprietorship is a form of the business which an individual can operate and it does not represent any legal entity. It owns by one person who is personally liable for its debts. A sole proprietorship can do operation under the name of its owner or it can have an alternate name such as 'Amir Property Consultant'. An alternate name is only a trade name and it does not reflect any legal entity which is separate from the business owner. sole proprietorship registration is done through FBR (Federal Board of Revenue) in Pakistan and normally it takes a day only to get it registered.
2. Partnership Firm: A partnership is a type of business where a formal arrangement is made between two or more parties to jointly manage and operate their business while sharing the profits as per the agreed terms. In a partnership mode of business, partners are individually or collectively responsible for all the business debts. Partnership is registered by the Local Registrar of District in Pakistan and it normally takes up to 2 - 7 days to get it registered.
Business Registrations Explained
| # | Sole Proprietor | Partnership Firm |
|---|---|---|
| GENERAL | ||
| Separate Legal Entity | ||
| Number of Subscribers | One person | 2 or more persons |
| Representative | Business Individual | Partners |
| Capital Requirement | ||
| Registration Provider | FBR (Federal Board of Revenue) | Local Registrar of District |
| Time of Incorporation | 1 working day | 2-7 working days |
| LIABILITY | ||
| Partners / Owners Liability | Business individual is personally liable to all the agreements and debts of the business | Partnership or partners indiviaually or collectively responsible for all agreements and debts |
| Business Liability | Business individual is personally liable to all the agreements and debts of the business | Partnership or partners indiviaually or collectively responsible for all agreements and debts |
| PROTECTION | ||
| Name Protection | Registrar of the firms won't allow to use the same name by any other business | |
| Title or Trade Mark | To get protection of title or trade mark registration with Intellectual Property Office is required | |
| ANNUAL REQUIREMENT | ||
| Title or Trade Mark | ||
| Audit of Accounts | ||
| Return Filing with Regulator | ||
| Return Filing with Regulator | ||
Article by:
Mohammad Ossama
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