How to start a business in Pakistan as a foreigner (2026)

Legal framework

Companies Act 2017 (administered by SECP); Foreign Private Investment (Promotion & Protection) Act 1976; Board of Investment (BOI) Ordinance 2001

Key points: starting a business in Pakistan

1. 01Foreign Ownership Limit

   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.

   invest.gov.pk state.gov

2. 02Minimum Capital

   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.

   secp.gov.pk secp.gov.pk

3. 03SECP Incorporation Steps

   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.

   secp.gov.pk secp.gov.pk invest.gov.pk

4. 04Post-Incorporation Registrations

   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.

   invest.gov.pk state.gov

5. 05Branch / Liaison Office Route

   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.

   invest.gov.pk secp.gov.pk

6. 06Regulatory Updates (2024-2025)

   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.

   secp.gov.pk invest.gov.pk

Sources

1. 1.secp.gov.pk/company-formation/registration-of-company/
2. 2.secp.gov.pk/document/foreign-company-incorporation-requirements/
3. 3.secp.gov.pk/eservices/company-incorporation/
4. 4.secp.gov.pk/companies-act-2017/
5. 5.secp.gov.pk/wp-content/uploads/2026/04/Companies-Regulations-2024-updated-upto-25
6. 6.invest.gov.pk/starting-business
7. 7.invest.gov.pk/branch-office
8. 8.invest.gov.pk/investment-regime
9. 9.investmentpolicy.unctad.org/investment-laws/laws/114/pakistan-foreign-investment-act
10. 10.state.gov/reports/2025-investment-climate-statements/pakistan/
11. 11.invest.gov.pk/node/415
12. 12.secp.gov.pk/document/procedure-for-registration-of-branch-or-liaison-office/