Sole proprietorship: simplest form, one owner, personal liability, no
SECP registration, file income tax as individual (slab rates). Pvt Ltd: 2+ directors, limited liability,
SECP registration required (
Companies Act 2017), separate legal entity, corporate tax rate (29% for TY2025), more credibility for international clients and
PSEB registration. For IT exporters, Pvt Ltd is strongly recommended because:
PSEB registration is easier for companies, banking channels prefer corporate accounts, clients prefer limited liability entities,
EOBI/social security compliance is clearer.