Most foreign investors who want to trade or earn revenue in Pakistan do so through a locally incorporated private limited company registered with the Securities and Exchange Commission of Pakistan (SECP). The process is online, but it has several steps that are specific to foreign shareholders and directors. This guide sets them out in order.
It is a practical orientation based on official sources, not legal or tax advice. Confirm the steps for your sector with qualified advisers in Pakistan.
Before you start: is a company the right vehicle?
A local company suits a business that will sell, invoice or employ people in Pakistan on an ongoing basis. A foreign company performing one contract may instead open a branch office, and one that only promotes its products may open a liaison office; both need Board of Investment permission (see our branch and liaison office guide). The Board of Investment states that foreign ownership has no upper limit except in specified sectors (BOI, FAQs).
Step 1: Create an account on the SECP portal
Incorporation is filed on the SECP’s online portal. Pakistani citizens verify their national identity card and mobile number. Foreign nationals register with a passport number and verify an email address instead (SECP, online incorporation procedure). Each person who will sign the application receives a PIN.
Step 2: Reserve the name and file for incorporation
Name reservation and incorporation can be filed as one application. The applicant proposes up to three names, selects the sector and principal line of business, sets out the capital structure and registered address, and adds each shareholder and director (SECP, Start your company). A private company needs at least two members; a single member company needs one.
For foreign shareholders and directors, the SECP asks for:
- an attested passport copy and a photograph;
- for a foreign corporate shareholder, its details, a passport copy, photograph and biodata of its representative, and an undertaking certified by a public officer or notary in the country of origin and signed by a Pakistani diplomat posted there.
The home country attestation is usually the slowest part, so start it early.
Step 3: Security clearance for foreign directors and shareholders
Foreign directors and shareholders are subject to security clearance by the Ministry of Interior. Since 2013 the SECP has incorporated companies with foreign investment and recorded foreign directors without waiting for that clearance, on an undertaking that the registration will be cancelled or the directors replaced if clearance is refused (SECP press release, 12 March 2013). Investors should still treat clearance as pending until confirmed and plan major commitments accordingly.
Step 4: Tax and other registrations
The SECP application carries information to the Federal Board of Revenue (FBR), which is mandatory, and can also pass details to the employee old-age benefits and provincial social security institutions. After incorporation the company completes its tax profile with the FBR, registers for sales tax where its activities require it (sales tax on services is administered by provincial revenue authorities), and obtains any sector licences. Our regulatory checklist for foreign companies lists the main authorities, and our guide to employer registrations covers hiring.
Step 5: Open a bank account and bring in capital
Share capital from abroad comes in through the banking system. The company designates a bank (an Authorised Dealer) to register the shares issued to non-resident shareholders and, later, to remit dividends and disinvestment proceeds. In May 2026 the State Bank of Pakistan moved this registration to commercial banks, which now report it monthly through a new Non-Resident Shareholding Registration System (SBP, FE Circular 2 of 2026, Annex A). Registering the investment properly at the start is what makes later profit repatriation straightforward; see our guide to repatriating profits.
How long it takes
The SECP processes complete applications quickly: applications filed by noon are processed the same working day. In practice the overall timeline is set by document attestation abroad, bank account opening and any sector licences, which can take several weeks.
How PIVRA can help
PIVRA prepares step-by-step registration and licensing guidance for your company and sector, from USD 1,500 per process, and works alongside your lawyers and accountants through official channels only. Request a quote.