Corporate Lawyers

In Pakistan, corporate lawyers hold great importance as they provide assistance regarding different corporate matters. The corporate law of Pakistan provides safety of rights which a common business man is unaware of. For this reason, a corporate lawyer not only provides legal assistance in corporate matters but also help in protecting their legal rights.

Company registration

You can register a company under the Companies Ordinance, 1984.

Sole proprietorship

Sole Proprietorship is one-man business organization. It is an entity that is owned and managed fully by a single person known as the sole proprietor. The man and the business are the same and do not have separate legal entity.

It is the simplest form of business, and registration is not mandatory.

Documents Required for Registration

For registration of a sole proprietorship, the following documents are required:

  • CNIC of the Person Applying for Sole Proprietor Registration.
  • Name of the Business
  • Address of the Business
  • utility bill for address verification
  • property or rental agreement in case property is rental
  • Letter Head and stamp of the Business
  • Details of bank account and maintenance certificate of bank account

please note that in case of a sole proprietorship, no official certificate is issued by any authority. An NTN certificate is received with name & details of the sole proprietorship.

Partnership

Under the Partnership Act, 1932, Partnership is defined as “the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.”

Two or more people who agree to share profit received through a business can form a partnership. The business is carried out either by both partners or by any single one. The Partnership Act 1932 deals with the following affairs of partnership firms:

  • dissolution of firm
  • retirement of partners
  • death of partners
  • other auxiliary issues.

In a partnership, every partner has to contribute something to the business, whether money, an idea, property, or some combination of these.

Types of Partnership or Joint Venture

There are three types of Partnership. Decision of the type of business that partners adopt depend on the profit share, Management rights, and personal liability of every partner. The three types of partnership are:

  • General Partnership
  • Limited Partnership
  • Limited Liability Partnership

General Partnership

In a general partnership, two or more owners carry out the business on equal share and have equal responsibilities. Each partner is fully responsible for all the debts and obligations business incur.

Limited Partnership

In limited partnership, although all partners gain benefit/profit from the business but at lease one partner has a status of general partnership. He has full liability for the obligations and debts of the business and has complete control over the business and managements decisions. Whereas the other partner has a limited liability and is often known as a sleeping partner. He also doesn’t have control over business and management decision.

Limited Liability Partnership

In limited liability partnership, not all partners are responsible for the debts, wrongful acts or obligations of one partner. Thus, a partner can not loose more than his/her investment if the business goes in loss.

Registration of partnership

For the registration of partnership, the partners of the firm can apply by submitting the following documents before the Registrar under the Partnership Act 1932.

Documents required for registration

The following Documents are required for the registration of Partnership Firm:

  • Original Partnership Deed
  • CNIC of all sleeping or active partners
  • Prescribed Form
  • Registration Fee Challan

Procedure

The submitted documents are examined by the Concerned registrar and if he finds the documents complete, he records the company’s entry and issues a registration certificate.

If the registrar is not satisfied by the documents and find a discrepancy, he issues a notice against it.

Non-registered partnership

The effect and consequence of Non-registered partnership is explained in detail in the Section 69 of the Partnership Act, 1932. Non-registered partnership rejects various rights under the Partnership Act, 1932.

  • A partner of a non-registered partnership has no right to file a suit in any Court against other partner until and unless the firm gets registered.
  • A partner of a non-registered partnership has no right to file a suit in any Court against a registered firm until and unless the firm gets registered.
  • A partner of a non-registered partnership has no right to claim an adjustment or a set off of debts against anyone in any Court against other partner until and unless the firm gets registered.

Partnership Deed

A partnership deed is a crucial document that holds details of the nature of the business, number of partners, the rights and responsibilities of each partner and the terms and conditions for the operation of the business.

Important details that are mentioned in the Partnership Deed are as follows:

  • Name of all the partners of a business
  • Residential Addresses of all partners
  • Duration of Firm
  • Address of business of partnership firm
  • The date of entering in the partnership firm
  • The object of business
  • Duties and responsibilities of all partners
  • Financial Management and taxation of partnership firm
  • Ratio of profit and loss
  • Contribution of Capital
  • Termination of Partnership
  • Resignation of Partnership
  • Resolving disputes

National Tax Number

Federal Board of Revenue is a semi-autonomous Agency of Pakistan that is responsible for revenue collection and imposing fiscal laws for the Government of Pakistan.

The FBR is responsible for providing National Tax Number or NTN which is the identity card of a business. It is also desired for business and corporate executives. In Pakistan, every taxpayer must have an NTN number.

  • business transactions for instance opening bank accounts.
  • filing tax return of companies and individuals.
  • filing tender notices with multinational companies and government departments
  • filling bids with multinational companies and government departments

Whether the company is operational or not, it is obligatory to file tax return on annual income tax.

Registration of a Firm with FBR

The following documents are mandatory for registration of Company in Federal Board of Revenue:

  • CNIC
  • Electricity bill
  • Gas bill
  • Property documents
  • Tenancy agreement if tenant.
  • Firm/company letter head
  • Partnership deed if partnership.

Registration of Firm with SBR

The Board of Revenue of Sindh, Pakistan is in charge of collecting tax revenue for the Sindh Government. The Board of Revenue has the authority to control all matters associated to the collection and administration of Revenue including partnership business taxes.

The following documents are required for registration of Company in Sindh Board of Revenue:

  • CNIC
  • Electricity bill
  • Gas bill
  • Property documents
  • Tenancy agreement if tenant.
  • Firm/company letter head
  • Partnership deed if partnership.

Our Services

Our experienced corporate online lawyers provide various corporate services that not only includes documentation but also provide assistance in legal issues that arise in corporate environment. The services we offer include:

  • Letter of Intent or Head of Terms
  • Deal Negotiations
  • Preparation of partnership Deed
  • Dissolution of Partnerships
  • Key Documents Preparation
  • Regulatory Compliance
  • Disclosures preparation
  • Post-completion formalities
  • Business Succession Planning
  • Family and Business Governance Agreements
  • Business Structuring and Restructuring
  • Shareholder and Constitutional Arrangements
  • Shariah-compliant Wills and Inheritance Planning
  • Family Dispute Management and Resolution
  • shareholders' agreements and dispute resolution
  • SECP and other regulatory compliance
  • corporate governance issues and compliance
  • board policies and boardroom dispute
  • C-suite service contracts
  • Marketing agreements
  • Distributorship and Agency Agreements
  • Standard Terms and Conditions of Trade

For free legal advice online, contact us either through our website or through phone. Our expert team is always available for support.

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Sole proprietorship

Sole Proprietorship is one-man business organization. It is an entity that is owned and managed fully by a single person known as the sole proprietor. The man and the business are the same and do not have separate legal entity.

It is the simplest form of business and does not require registration.