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Business structure, SECP and corporate tax guides
The right structure fits ownership, liability, financing and governance — not simply the lowest headline rate. These guides cover formation and the recurring compliance that follows it.
The rule this topic turns on: The right structure is the one that fits ownership, liability, financing, governance and compliance—not simply the structure with the lowest headline rate.
In depthBusiness taxChoosing a business structure in Pakistan
How the four Pakistani business structures compare on liability, tax rates, registration and recurring compliance, and what should decide it first.
In depthBusiness taxSole proprietor vs AOP vs company: tax mechanics
How income is computed and taxed in each of the three structures, how AOP member distributions work, the surcharge threshold, and what conversion involves.
In depthBusiness taxSECP company registration in Pakistan: full process
Name reservation to certificate of incorporation, the documents each step needs, what the fee depends on, and what to do after SECP.
In depthBusiness taxSingle member company registration in Pakistan
What makes an SMC different from a private limited company, the nominee requirement, governance with one shareholder, and conversion when a second joins.
In depthBusiness taxPrivate limited company registration in Pakistan
What multiple shareholders actually need to settle — decision rights, share transfer, deadlock and exit — beyond the incorporation filing itself.
In depthBusiness taxCompany name reservation with SECP
The refusal grounds, how to search before applying, restricted and sensitive words, and how name approval interacts with trademarks and domains.
In depthBusiness taxSECP annual return and statutory filings
What a company must file with SECP annually, which filings run from the date of an event rather than the year end, and how penalties accumulate.
In depthBusiness taxCorporate income tax in Pakistan: rates and mechanics
The 29% standard rate, 20% small company rate, SME manufacturing rates, how minimum tax and super tax interact, and the distribution layer on top.
In depthBusiness taxSmall company tax treatment in Pakistan
What section 2(59A) requires, how small company status differs from SME manufacturing treatment, and what happens when you outgrow it.
In depthBusiness taxMinimum tax on turnover in Pakistan (section 113)
How section 113 minimum tax works, why loss-making businesses still pay it, the three-year carry forward of excess, and which sectors it hits hardest.
In depthBusiness taxSuper tax in Pakistan after the Finance Act 2026
The Finance Act 2026 abolished super tax below Rs 500 million for most persons and added an export-proceeds exemption. What remains, and who is still exposed.
In depthBusiness taxStartup tax and compliance checklist for Pakistan
A sequenced checklist covering structure, registration, banking, sales tax, payroll and bookkeeping — in the order that avoids rework.
In depthBusiness taxE-commerce and digital business tax in Pakistan
How the digital transaction regime works, who withholds, the Finance Act 2026 opt-out and Rs 200 million adjustability change, and marketplace obligations.
In depthBusiness taxTax for retail shops in Pakistan
Income tax, sales tax registration, the retailer categories that trigger POS integration, the Finance Act 2026 scheme, and the records a shop needs.
In depthBusiness taxBookkeeping for tax compliance in Pakistan
The chart of accounts a Pakistani SME needs, the three reconciliations that matter, monthly discipline, and why sales tax and income tax turnover must agree.
In depthBusiness taxPayroll tax and compliance guide for Pakistani employers
The employer payroll stack: section 149 withholding, deposit and statement cycles, EOBI and provincial social security, and the records tested.
In depthBusiness taxEOBI registration and contributions in Pakistan
Which employers must register with EOBI, how the monthly contribution is split between employer and employee, and what the employee gets back.
In depthBusiness taxProfessional tax in Punjab and Sindh explained
What provincial professional tax is, who pays it, how the amount is banded by business type and size, and why it sits apart from federal tax.
In depthBusiness taxWhich companies need a statutory audit in Pakistan
When a Pakistani company must have its accounts audited, how the requirement varies with size, appointment rules, and the link to SECP filing.
In depthBusiness taxTrademark registration in Pakistan: a practical guide
How to register a trademark with IPO Pakistan, why a search comes before filing, how the class system works, and the realistic timeline.
In depthBusiness taxMinimum tax on turnover under section 113 in Pakistan
How section 113 minimum tax works: when it applies despite losses, the turnover rate, carry-forward of the excess, and the interaction with normal tax.
In depthBusiness taxGroup taxation and holding companies in Pakistan
How group taxation and group relief work: SECP group designation, surrender of losses between group companies, and the conditions imposed.
In depthBusiness taxBuilding a chart of accounts for a Pakistani SME
How to design a chart of accounts for a Pakistani small business: the five account classes, a numbering scheme, and clean tax reconciliation.
In depthBusiness taxIFRS for SMEs in Pakistan: which framework applies
Which reporting framework a Pakistani company must follow: full IFRS, IFRS for SMEs or the small-company framework, and how SECP size decides.
In depthBusiness taxFinancial statement preparation basics in Pakistan
What a set of financial statements contains in Pakistan: the four statements, the trial balance to accounts process, and the link to the return.
In depthBusiness taxSECP annual filing calendar: Form A, Form 29 and fees
The recurring SECP filings a company must make each year: the annual return, changes in officers, audited accounts, timing and late-filing cost.
In depthBusiness taxLLP registration in Pakistan: how it works
How to register a limited liability partnership with SECP, what an LLP is, how it differs from a company and a partnership, and the steps.
In depthBusiness taxPartnership with the Registrar of Firms versus an AOP
What a registered partnership and an AOP are, how registration with the Registrar of Firms works, and how the two relate for legal and tax purposes.
In depthBusiness taxNon-profit and NGO tax approval under section 2(36)
How a Pakistani non-profit obtains approval under section 2(36), the tax credit that follows, and the compliance conditions it must keep meeting.
In depthBusiness taxBalance sheet format for a Pakistani company explained
The line-item structure of a balance sheet for a Pakistani company: the Companies Act order, the current-versus-non-current split, and a layout.
In depthBusiness taxProfit and loss statement format in Pakistan
How to structure a profit and loss account in Pakistan: the flow from revenue to net profit, by-function versus by-nature, and a worked layout.
In depthBusiness taxIFRS 18 and the new format of the income statement
What IFRS 18 changes: the new income and expense categories, required subtotals, management-defined performance measures, and the 2027 date.
In depthBusiness taxIFRS 15 revenue recognition: the five-step model
How the IFRS 15 five-step model works: identifying performance obligations, allocating the transaction price, and when control actually transfers.
In depthBusiness taxBusiness valuation methods for a Pakistani SME
The main ways to value a small business in Pakistan, asset-based, earnings multiple and discounted cash flow, and when each of them fits.
In depthBusiness taxFeasibility study and business plan for Pakistani finance
What a bank or investor expects in a feasibility study and business plan, the projections that carry weight, and the assumptions that get tested.
In depthBusiness taxFinancial modelling basics for Pakistani businesses
What a financial model is, how the three statements link inside one, why assumptions sit apart from calculations, and how a model supports decisions.
In depthBusiness taxWorking capital management for Pakistani businesses
Why profitable Pakistani businesses run out of cash, how the receivables, stock and payables cycle works, and practical levers to shorten it.
In depthBusiness taxCash flow statement: direct and indirect methods
How the cash flow statement splits into operating, investing and financing activities, the direct and indirect methods, and why profit is not cash.
In depthBusiness taxCost of goods sold and inventory accounting in Pakistan
How cost of goods sold is calculated from opening stock, purchases and closing stock, the FIFO and weighted-average methods, and the tax effect.
In depthBusiness taxDrafting a company principal line of business
Under the Companies Act 2017 a company states a principal line of business rather than a long object clause. How to frame it, and why it still matters.
In depthBusiness taxAuthorized capital vs paid-up capital in Pakistan
The difference between a company authorized (nominal) capital and its paid-up capital, why both appear at incorporation, and what each controls.
In depthBusiness taxHow to increase authorized share capital with SECP
When a Pakistani company must raise its authorized capital before issuing more shares, the resolution required, and the filing with SECP to record the change.
In depthBusiness taxIssuing new shares and right shares in a company
How a Pakistani company issues new shares, the pre-emption rights existing members have under section 83, and the return of allotment filed with SECP.
In depthBusiness taxTransferring private company shares in Pakistan
How shares in a private company are transferred: the pre-emption restriction, the transfer instrument, the tax angle, and the members register.
In depthBusiness taxAppointing, resigning and removing company directors
How directors of a Pakistani company are appointed, how a director resigns, how a director can be removed, and the requirement to notify SECP of changes.
In depthBusiness taxChanging a company registered office with SECP
How a Pakistani company changes its registered office: the 15-day notice to SECP, and when a change between cities needs a special resolution of the members.
In depthBusiness taxChanging a company name in Pakistan
How a company changes its name: availability, the special resolution, SECP approval and the fresh certificate, and why the entity is unchanged.
In depthBusiness taxConverting an SMC into a private limited company
How a single-member company in Pakistan converts into a private limited company when a second member joins: the resolution, the filings, and what changes.
In depthBusiness taxDormant and inactive company status at SECP
What the inactive (dormant) company concept in the Companies Act 2017 means, which companies can use it, and the obligations that continue while inactive.
In depthBusiness taxClosing a company: SECP easy exit and strike-off
How a Pakistani company is closed: SECP's easy exit route for a defunct company, striking off the register, and why settling affairs first matters.
In depthBusiness taxAGMs in Pakistan: notice, quorum and minutes
When a Pakistani company must hold its AGM, the notice members are entitled to, and the minutes that record what was decided, under the Companies Act 2017.
In depthBusiness taxUltimate beneficial ownership declaration (SECP)
What the ultimate beneficial ownership regime under section 123A requires: the 25% threshold, the natural person behind the company, and the filing.
In depthBusiness tax