How do I start a business in Pakistan?

To start a business in Pakistan, follow 7 steps: Reserve Company Name (SECP), File Incorporation Online (SECP), Register with FBR for NTN, Register with Provincial Revenue Authority, Register with EOBI and ESSI, Obtain BOI Registration (if applicable), Open Corporate Bank Account. The process takes approximately 38 days and costs around $32 USD.

What types of business entities can I register in Pakistan?

Pakistan offers 4 entity types: Private Limited Company (Pvt Ltd) (min capital: $0, foreign ownership: 100%); Single Member Company (SMC) (min capital: $0, foreign ownership: 100%); Public Unlisted Company (min capital: $0, foreign ownership: 100%); Branch Office (min capital: $0, foreign ownership: 100%).

Can foreigners own a business in Pakistan?

Yes, foreigners can own businesses in Pakistan. Private Limited Company (Pvt Ltd) allows up to 100% foreign ownership. Single Member Company (SMC) allows up to 100% foreign ownership. Public Unlisted Company allows up to 100% foreign ownership. Branch Office allows up to 100% foreign ownership.

What visa do I need to start a business in Pakistan?

The primary business visa for Pakistan is the Business Visa. Multiple entry for up to 5 years. Apply at Pakistan embassy. E-visa available for 50+ countries. For investors: Investor Visa. Foreign investors with BOI-registered projects can obtain 5-year multiple entry visas with fast-track processing. Processing takes approximately 3 weeks and costs ~$200.

What is the minimum wage in Pakistan?

The minimum wage in Pakistan is $110/month (USD). Average monthly wage is approximately $300. Standard work week is 48 hours with 14 paid leave days per year.

How much does it cost to run a business in Pakistan?

Estimated monthly overhead for a small business (5-10 employees) in Pakistan is approximately $4500. Office rent averages $5/sqm/month. Skilled workers average $500/month. Typical break-even: Tech 12 months, Services 7 months, Retail 10 months.

Countries PakistanBusiness Guide

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Start a Business in Pakistan

Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis

~38 days

Setup Time

~$32

Setup Cost

29%

Corporate Tax

100%

Foreign Ownership

#108

Ease of Business

Entity Types

Entity	Min Capital	Foreign %	Liability	Min Shareholders	Best For
Private Limited Company (Pvt Ltd) پرائیویٹ لمیٹڈ کمپنی	None	100%	Limited	2	Most common for foreign investors - online registration through SECP eServices portal
Single Member Company (SMC)	None	100%	Limited	1	Solo entrepreneurs and small businesses - simplified compliance requirements
Public Unlisted Company	None	100%	Limited	3	Larger businesses not yet ready for stock exchange listing
Branch Office	None	100%	Unlimited	0	Foreign companies operating directly in Pakistan without forming a local entity

Registration Steps

Reserve Company Name (SECP)

Apply for name availability through the SECP eServices portal - instant online verification

1 days

~$2

Securities and Exchange Commission of Pakistan (SECP)

File Incorporation Online (SECP)

Submit memorandum and articles, director details, and registered office through SECP eServices portal

1-3 days

~$30

Securities and Exchange Commission of Pakistan (SECP)

Obtain National Tax Number from Federal Board of Revenue and register for sales tax

1-3 days

Free

Federal Board of Revenue (FBR)

2-5 days

Free

Punjab/Sindh/KPK/Balochistan Revenue Authority

3-7 days

Free

EOBI / Provincial Social Security

Obtain BOI Registration (if applicable)

5-14 days

Free

Board of Investment Pakistan

Open Corporate Bank Account

Open a business account at a scheduled bank with SECP certificate, NTN, and director documents

2-5 days

Free

Scheduled Bank

Total Estimated

38 days max$32

Tax Framework

Corporate Income Tax29%

Standard rate 29% for tax year 2024. Small companies at 20%. IT/ITeS exports income exempt until June 2025. CPEC SEZ enterprises get 10-year tax holidays. Super tax of 1-10% applies to high-income entities.

Sales Tax18%

Personal Income Tax0-35%

Capital Gains Tax15%

Dividend Withholding15%

Tax Treaties67 countries

Tax Incentive Zones

9 CPEC Special Economic Zones offer 10-year income tax exemption, customs duty exemptions, and one-window operations. IT sector exports exempt from income tax.

Labor Laws & Costs

$110/mo

Minimum Wage

$300/mo

Average Wage

48 hrs/week

Work Hours

14 days/year

Paid Leave

2 weeks/year

Severance

6% of salary

Employer Social Security

1% of salary

Employee Social Security

Required

Foreign Worker Permit

Foreign Worker Quota: No fixed quota for most sectors. Work visa requires BOI recommendation for foreign nationals.

Visa & Immigration

Business Visa

Multiple entry for up to 5 years. Apply at Pakistan embassy. E-visa available for 50+ countries.

3 weeks

Processing time

$200

Estimated cost

Investor Visa

Investor

Foreign investors with BOI-registered projects can obtain 5-year multiple entry visas with fast-track processing.

Work Permit Process: Employer obtains work visa recommendation from BOI. Employee applies at Pakistan embassy. Renewable annually.

Business Environment

#108/190

Ease of Business Rank

16 days

Starting a Business

104 days

Registering Property

1071 days

Enforcing Contracts

27/100

Corruption Perception

36%

Internet Penetration

PKR

Currency

UTC+5

Time Zone

GoodCould be betterHover a dot for the threshold and source. Sources: World Bank, Transparency International, ITU.

UrduEnglish

Investment Zones & Provinces

Rashakai CPEC SEZ

SEZ

Nowshera, Khyber Pakhtunkhwa

Incentives

10-year income tax exemptionCustoms duty exemption on capital goodsOne-window CPEC authority facilitationAccess to CPEC road and rail corridor

Key Sectors

Light ManufacturingFood ProcessingPharmaceuticalsTextilesElectronics Assembly

10-year tax holiday and duty exemptions reduce costs by 45-55%

Faisalabad M-3 Industrial City SEZ

SEZ

Faisalabad, Punjab

Incentives

10-year income tax holidayDuty-free import of machineryProximity to textile hubGas and electricity connections

Key Sectors

TextilesGarmentsEngineeringChemicalsFood Processing

Tax holiday plus established textile supply chain reduce costs by 40-50%

Pakistan Software Export Board (PSEB) Tech Zone

Tech Hub

Islamabad / Lahore / Karachi

Incentives

IT/ITeS export income tax exemption100% foreign ownership for IT companiesPSEB registration for export facilitationReduced withholding on IT services

Key Sectors

Software DevelopmentIT OutsourcingFintechGamingAI/ML Services

IT export tax exemption and low labor costs reduce operating costs by 55-65%

Break-Even Analysis

Retail (months)

F&B (months)

Tech (months)

Manufacturing (months)

Services (months)

Typical Operating Costs in Pakistan

Per-person or per-unit costs. Multiply by your team size for total estimates.

Office Rent	$5	per sqm/month
Skilled Worker Salary	$500	per 1 worker/month
Unskilled Worker Salary	$130	per 1 worker/month
Electricity	$0.09	per kWh
Business Internet	$18	per 1 connection/month
Est. Monthly Overhead (5-10 staff)	$4,500	total/month

Sources: World Bank Open Data, ILO, Numbeo Cost of Living Index, local government publications. Salaries reflect market averages and may vary by city, industry, and experience level. Last updated 2025.

Break-Even Calculator

Total Investment (USD)

Monthly Revenue (USD)

Monthly Costs (USD)

Tax rate applied: 29% (corporate rate)

months to break even

$7,455

monthly net profit

178.9%

annual ROI

$81,500

total cost to break even

Break-even progressFast recovery

Next Steps

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Key Considerations for Foreign Investors

220+ million consumer market - sixth most populous country with a young, growing workforce and expanding middle class

SECP online registration makes company incorporation one of the fastest in South Asia - often completed in 1-3 days

CPEC Special Economic Zones offer 10-year income tax exemption - Chinese and international investors actively entering

IT/ITeS export income is tax-exempt - Pakistan's IT sector growing 30%+ annually with strong English-speaking talent pool

67 double taxation treaties provide extensive international tax planning opportunities

Foreign exchange regulations require State Bank of Pakistan approval for capital repatriation above certain thresholds

Security environment varies by region - major cities (Karachi, Lahore, Islamabad) have improved significantly but due diligence recommended

Last updated: 2025-Q4

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Start a Business in Pakistan

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors

Start a Business in Pakistan

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors