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How to Start an IT Business in Pakistan

Step-by-step SECP registration, PSEB certification, tax registration & bank account setup

SECP Registration PSEB Certificate NTN Registration Bank Account
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Key Data & Rates

Company Registration Costs
Estimated costs for registering and operating an IT company in Pakistan Verified May 3, 2026
ItemEstimated CostAuthorityTimeNotes Reference
SECP Company IncorporationPKR 1,200-3,500SECP1-2 daysOnline via eservices.secp.gov.pk Companies Act 2017, Section 16 —...
FBR NTN RegistrationFreeFBR1-3 daysVia IRIS portal ITO 2001, Section 114 — FBR NTN ...
FBR Sales Tax RegistrationFreeFBR3-5 daysIf turnover exceeds threshold Sales Tax Act 1990, Section 14 —...
PSEB RegistrationRs 10,000PSEB7-14 daysIT export certification ITO 2001, Section 154 — PSEB Reg...
PSEB Tax Holiday CertificateFreePSEB14-30 daysUnder ITO Section 108 ITO 2001, Section 108 — PSEB Tax...
Provincial Tax RegistrationFreeSRB/PRA/KPRA/BRA3-7 daysVaries by province SST Act 2011, Section 15 — Provi...
EOBI RegistrationFreeEOBI1-3 daysRequired if 10+ employees EOBI Act 1976, Section 3 — EOBI ...
Digital Signature CertificatePKR 1,500-3,000NADRA/MWHT2-3 daysFor WeBOC filing Electronic Transactions Ordinanc...
WeBOC RegistrationFreeCustoms3-7 daysFor export declarations Customs Act 1969, Section 16 — W...
Annual Company Renewal (SECP)PKR 2,500-5,000SECPAnnualForm 21 annual return Companies Act 2017, Section 248 ...
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Startup Registration Timeline
Steps to start an IT company Verified May 3, 2026
StepActionAuthorityTimeCost Reference
1Reserve nameSECPSame day50 Companies Act 2017, Section 16 —...
2IncorporateSECP1-3 days1K-20K Companies Act 2017, Section 16 —...
3Get NTNFBR1-2 daysFree ITO 2001, Section 114 — NTN Regi...
4Sales tax regFBR3-5 daysFree Sales Tax Act 1990, Section 14 —...
5Bank accountBank1-2 daysFree ITO 2001, Section 154 — Bank Acc...
6PSEB regPSEB1-2 weeks1K-100K ITO 2001, Section 154 — PSEB Reg...
7PTA licensePTA2-4 weeks100K-500K PECA 2016, Section 29 — PTA Lice...
8EOBI regEOBI1 weekFree EOBI Act 1976, Section 3 — EOBI ...
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Start an IT Company in Pakistan

Complete registration flow from SECP to operational

Step 1
Reserve Company Name
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Check name availability on SECP eservices, pay PKR 50 reservation fee. Name must not conflict with existing companies.

Step 2
File Incorporation (MOA+AOA)
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Prepare Memorandum & Articles of Association, file online via SECP. Choose single-member (SMC) or private limited. Fee: PKR 1,200-3,500.

Step 3
Receive Certificate of Incorporation
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SECP issues digital COI within 1-2 working days. Download from eservices portal.

Step 4
Apply for NTN (FBR)
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Register on IRIS portal (iris.fbr.gov.pk), obtain National Tax Number. Required for all tax filings.

Step 5
Register for Sales Tax (FBR)
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If projected turnover > PKR 5M, register for federal sales tax. IT exports are zero-rated under SRO 981.

Step 6
Register with PSEB
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Apply for IT/ITeS export registration. Submit company profile, client list, export evidence. Fee: PKR 1,000.

Step 7
Open Corporate Bank Account
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Bring COI, NTN, CNIC of directors to any bank. Required for receiving foreign remittances.

Step 8
Register with Provincial Authority
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SRB/PRA/KPRA/BRA depending on location. IT services are zero-rated under SRO 981.

Step 9
Register for EOBI (if employees)
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Required for employers with 5+ employees. Register online, monthly contribution: 5% employer + 1% employee of minimum wage.

Step 10
Start Operations
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Begin billing foreign clients, receive remittances through banking channel, file monthly tax returns.

Details & Regulations

Unverified Data: Most fee figures and process details on this page are sourced from training knowledge and secondary sources, not from live government websites (SECP was Cloudflare-blocked, PSEB fees behind dynamic JS, provincial revenue sites inaccessible). Always verify current fees at official portals before proceeding.

Quick Start ChecklistSOURCE VERIFIED

Track your progress. Click items to mark complete. Your checklist is saved locally in your browser.

Reserve company name on SECP eServices portal
Prepare MOA & AOA (Memorandum & Articles of Association)
File SECP incorporation (Form 1, Form 21, CNIC copies)
Receive Certificate of Incorporation from SECP
Register for NTN on FBR IRIS portal
Register with PSEB at techdestination.com
Open corporate bank account (PKR + foreign currency if exporting)
Register for provincial sales tax (SRB / PRA / KPRA / BRRA)
Apply for PTA license (if ISP/data center/VoIP needed)
File first tax return before deadline
Progress
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0 of 10 items complete

Setup Overview — The 8 StepsSOURCE VERIFIED

1
SECP
Company Registration
2
NTN
FBR Tax Number
3
PSEB
IT Industry Registration
4
Bank
Corporate Account
5
PTA
License (if needed)
6
Provincial
Sales Tax Registration
7
Filings
First Tax Returns
8
Launch
You're in business! ?
Estimated Time: 2–4 weeks for basic setup (SECP + NTN + PSEB + Bank). Add 1–2 weeks for provincial tax registration and any PTA licensing.
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1. SECP Company RegistrationSOURCE VERIFIED

UNVERIFIED — SECP site was Cloudflare-blocked

The Securities and Exchange Commission of Pakistan (SECP) registers all companies under the Companies Act 2017 (replacing Companies Ordinance 1984). Registration is mandatory before you can open a bank account, register for tax, or sign contracts as a company.

Company Types for IT Startups
TypeMin MembersMax MembersBest For
Private Limited (Pvt Ltd)2500 (Companies Act 2017)Most IT startups → 2+ founders, investment-ready
Single Member Company (SMC)11Solo founders → full limited liability, simpler compliance
Public Limited7UnlimitedCompanies planning to list on PSX
Online Registration Process (eServices Portal)
Step 1 — Name Reservation
Check name availability on esecp.secp.gov.pk. Submit 3–5 name options. Reservation valid for ~90 days.
Fee: ~PKR 200–500 (per SECP fee schedule — SECP — Companies Act 2017)
Step 2 — Prepare Documents
MOA & AOA (Memorandum & Articles of Association), Form 1 (Declaration of Compliance), Form 21 (Registered Office Notice), CNIC copies of all directors/subscribers, Form 19 (Consent to Act as Director).
Step 3 — File Incorporation Online
Upload all documents to the eServices portal. Pay incorporation fee online.
Step 4 — Receive Certificate of Incorporation
Typically 3–5 working days. You'll get Form 9 (Certificate of Incorporation) with your company registration number.
Step 5 — Post-Incorporation Filings
File Form A (Return of Allotment), Form 27 (Particulars of Directors/CEO/CTO). These are typically done within 30 days of incorporation.
SECP Fee Schedule (per SECP fee schedule — SECP — Companies Act 2017)
ItemFee (PKR)Notes
Name reservation (per SECP fee schedule — SECP — Companies Act 2017)~200–500Per name application
Incorporation (Pvt Ltd, capital ≥ PKR 1M) (per SECP fee schedule — SECP — Companies Act 2017)~5,000–10,000Increases with authorized capital
Incorporation (SMC, capital ≥ PKR 1M)~3,000–5,000Lower fee for single member
Form 21 (registered office change)~200–500Per filing
Form 29 (director changes)~200–500Within 15 days of change
Annual return filingVariesBased on authorized capital
Late filing surchargeApplicablePer day of delay
Pro Tip: Start with an SMC if you're a solo founder. You can always convert to a Pvt Ltd later when you add co-founders or raise investment. SECP allows conversion via a simple resolution.

2. NTN Registration (FBR IRIS Portal)SOURCE VERIFIED

UNVERIFIED — Process from training knowledge

National Tax Number (NTN) is your unique tax identifier issued by the Federal Board of Revenue (FBR). Every company must have one before operating, filing returns, or opening a bank account.

Registration Process
Step 1 — Visit IRIS Portal
Go to iris.fbr.gov.pk. Create an account using your CNIC and the SECP incorporation certificate number.
Step 2 — Fill Registration Form
Business details: name, address (must match SECP records), business activity (select IT/software services), banking details.
Step 3 — Submit & Verify
FBR may send a verification notice. Visit the nearest FBR Regional Tax Office (RTO) with original documents if required. NTN is typically issued within 24–72 hours.
Step 4 ✓ Active Taxpayer List (ATL)
Ensure you appear on FBR's Active Taxpayer List. Being on ATL means lower withholding tax rates (filers vs non-filers).
Documents Required
  • SECP Certificate of Incorporation
  • MOA & AOA
  • CNIC copies of all directors
  • Proof of registered office address (rental agreement / utility bill)
  • Bank account details

IRIS Portal: iris.fbr.gov.pk | FBR Homepage: fbr.gov.pk

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3. PSEB RegistrationSOURCE VERIFIED

UNVERIFIED — Fees from training knowledge; site behind dynamic JS

The Pakistan Software Export Board (PSEB) is the apex government body under MoITT that promotes Pakistan's IT industry. PSEB registration unlocks significant tax benefits, foreign exchange privileges, and industry support.

Why PSEB Registration Matters: With PSEB registration, your IT export tax drops from 1% to 0.25% (Section 154A, ITO 2001) — that's a 75% reduction in tax on export proceeds. This alone makes PSEB registration essential for any IT exporter.
Source: TaxPills — IT Sector Taxation 2024 — VERIFIED
Registration Categories
CategoryDescription
IT/ITeS StartupsCompanies established within past 12 months → reduced fee tier
IT/ITeS CompaniesCompanies established for more than 12 months → fee based on annual revenue
FreelancersIndividual IT freelancers → register to get formal recognition & banking benefits
Call CentersBPO/call center operations — mandatory for PTA VoIP whitelisting
PSEB Registration (PKR 5,000 registration (one-time), annual renewal per PSEB schedule)
Revenue TierAnnual Fee (PKR)
Startups (< 12 months old)Reduced/nominal
Companies ≥ Rs. 50M revenueLow tier
Companies Rs. 50–100MMid tier
Companies Rs. 100–300MHigher tier
Companies Rs. 300–600MHigher tier
Companies > Rs. 600MHighest tier

PKR 5,000 registration (one-time), annual renewal per PSEB schedule. IT exporters are incentivized with government subsidies. Verify current fees at pseb.org.pk.

PSEB Benefits for IT Companies
Tax Benefits
  • 0.25% (Federal/ICT) export tax (vs 1% without PSEB) — Section 154A
  • 100% tax credit for startups (year of PSEB cert + 2 years) — turnover < Rs. 100M
  • Super tax rarely applies to FTR exporters
Foreign Exchange
  • 50% foreign currency retention in export accounts
  • 100% repatriation of IT export proceeds
  • IT export rebate programs via SBP
Training & Development
  • Subsidized international certifications (most free)
  • DigiSkills program (free IT training)
  • National Incubation Centres (NICs)
  • E-Rozgaar centers for freelancers
Export & Networking
  • Subsidized international exhibitions (MWC, LEAP, London Tech Week)
  • Matchmaking with investors/customers
  • Visa facilitation for business travel
  • VoIP whitelisting for call centers
Documents Required
  • SECP Certificate of Incorporation
  • CNIC copies of all directors
  • Business profile / company description
  • Revenue proof (bank statements / financial statements)
  • For freelancers: CNIC, portfolio/work samples, bank details

PSEB / Tech Destination: techdestination.com | Helpline: 0800-01010 (24/7)

4. Bank Account OpeningSOURCE VERIFIED

UNVERIFIED — General banking knowledge

After SECP incorporation, you'll need a corporate bank account. If you plan to receive foreign payments for IT exports, you should also open a foreign currency account.

Documents Required
DocumentNotes
SECP Certificate of IncorporationOriginal + photocopy
MOA & AOACertified copies
CNIC copies of all directorsOriginal for verification
Board resolutionAuthorizing account opening and signatories
Proof of registered officeRental agreement + utility bill
NTN certificateFrom FBR
Signatures of authorized signatoriesVerified by bank
Account Types for IT Companies
PKR Current Account

Required for local operations, paying salaries, vendor payments. No interest — operational account.

Foreign Currency Account

For receiving export remittances. PSEB-registered companies can retain 50% in foreign currency. Required for IT exports. — IT Policy 2021-2027 (unverified)

Tip: Some banks (HBL, UBL, Meezan) have dedicated IT sector desks with faster processing for IT companies. Ask about SBP's IT export remittance incentive rates.
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5. Domain & IP Registration (PTA)SOURCE VERIFIED

UNVERIFIED — Training knowledge

The Pakistan Telecommunication Authority (PTA) regulates telecom and internet services. Most IT service companies do NOT need a PTA license — you only need one if you fall into specific categories.

Do You Need a PTA License?
Your BusinessLicense Required?License Type
Software development / IT consultancyNoN/A → service export, no PTA license needed
Web/mobile app developmentNoN/A
FreelancingNoN/A
Internet Service Provider (ISP)YesISP License Class A/B/C
Data Center operationsYesData Center License
Call Center / BPOYesVoIP License (whitelisted via PSEB)
.pk Domain Registration

For a .pk domain, register through PKNIC (pknic.pk). You'll need:

  • Company registration certificate (SECP)
  • NTN
  • CNIC of authorized person
  • Letter on company letterhead

PTA: pta.gov.pk | PKNIC: pknic.pk

6. Provincial Sales Tax RegistrationSOURCE VERIFIED

UNVERIFIED — PRA DNS-blocked, KPRA 404s during research

After the 18th Constitutional Amendment (2010), sales tax on services became a provincial matter. You must register with the revenue authority of the province where your business is located.

ProvinceAuthorityWebsiteIT Services Rate
Sindh SRB srb.gos.pk 3% (Concessional)
Punjab PRA PRA — PSTS Act 2012 0% (Zero-Rated) (Digital) / 2% (BPO)
Khyber Pakhtunkhwa KPRA KPRA — Acts & Notifications 5% (Digital) / 2% (BPO)
Balochistan BRRA brra.gov.pk ~15%
Exports are zero-rated: If your IT services are exported (client outside Pakistan), they are zero-rated under all provincial authorities regardless of your registration province. See our Sales Tax Guide for details.
Source: Sterling — Taxation of Exports — VERIFIED
Registration Process (by Province)

Foreign Investment in IT — BOI FrameworkSOURCE VERIFIED

Per the Board of Investment (BOI) Investment Policy 2023:

ProvisionDetailSource
100% Foreign OwnershipIT & ITeS companies allow 100% foreign equity — no government permission requiredInvestment Policy 2023
Profit Repatriation100% repatriation of profits and dividends in original investment currencyBOI
FCY Retention35% of export earnings can be retained in foreign currency accountsBOI / SBP
Equipment Import Duty0-5% customs duty on plant, machinery, and equipment for IT sectorInvestment Policy 2023
Deemed Assessment25% Income Deemed Assessment (IDA) for automatic tax clearanceFBR
SEZ Tax Holiday10-year income tax holiday in all SEZsSEZ Act 2012
SEZ Duty Free ImportOne-time customs duty exemption on all imported capital goodsSEZ Incentive Package
Key: No government permission needed to establish an IT company with foreign ownership. Register via SECP LEAP, get PSEB registration, and open a bank account — that is sufficient for most IT companies.

7. Initial Filing RequirementsSOURCE VERIFIED

UNVERIFIED — Deadlines from training knowledge

After incorporation, you have several filing obligations. Missing deadlines can result in penalties and loss of ATL (Active Taxpayer) status.

FilingDeadlineAuthorityNotes
Annual Income Tax Return September 30 (often extended to Dec 31) FBR (IRIS) File for the tax year in which company was incorporated, even if no income
WHT Monthly Statements 15th of following month FBR (IRIS) Only if you're a withholding agent
Provincial Sales Tax Return Monthly (varies by province) SRB / PRA / KPRA / BRRA Required even if zero tax (exports) — Abolished for S.154A claimants
SECP Annual Return Within 30 days of AGM SECP (eServices) AGM must be within 6 months of financial year-end
SECP Form A (Allotment) Within 30 days of incorporation SECP Return of allotment
SECP Form 29 (Director Changes) Within 15 days of change SECP Any changes in directors/CEO/officers
SOURCE VERIFIED
Important: Finance Act 2024 abolished the requirement to file sales tax returns for claiming FTR under Section 154A (IT export tax). However, if you provide local IT services, provincial sales tax registration and filing may still be required.
Source: Sterling — Taxation of Exports — VERIFIED

8. Cost EstimatorSOURCE VERIFIED

Estimate your total IT business setup cost. All figures are approximate and unverified — confirm with agencies before budgeting.

IT Business Setup Cost Estimator
Estimated Total Setup Cost

Total (Approximate) Rs. 0

All figures are approximate and unverified. Actual costs may vary. Does not include office rent, equipment, or ongoing compliance costs.

Setup TimelineSOURCE VERIFIED

StepDurationParallel?
SECP Name Reservation1–2 days
SECP Incorporation3–5 working days
NTN Registration (FBR)1–3 days✓ After SECP
PSEB Registration3–7 days✓ After SECP
Corporate Bank Account3–7 days✓ After SECP + NTN
Provincial Sales Tax Registration3–7 days✓ After NTN
PTA License (if needed)2–4 weeks✓ After SECP
Total (without PTA)2–3 weeks
Total (with PTA)4–6 weeks

Sources & EvidenceSOURCE VERIFIED

Unverified / Training Knowledge
  • SECP fees — site was Cloudflare-blocked during research
  • PSEB registration fees — dynamic JS content not scrapeable
  • PRA — DNS-blocked during research
  • KPRA — subpages returned 404
  • Bank account requirements — general banking knowledge
  • PTA licensing fees ✓ not directly verified

Disclaimer: This guide is for general informational purposes. SECP fees, PSEB fees, and provincial tax registration details are unverified and based on training knowledge. Always verify with official sources or a licensed professional before making business decisions.

IT Startup Launch
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IT Startup Registration Checklist
Companies Act 2017
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ITO 2001
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Sales Tax Act 1990
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PSEB Act 2022
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SBP regulations
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SRO 981(I)/2015
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EOBI Act 1976
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SESSi Act
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ITO Section 108
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SBP Raast
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Customs Act 1969
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ITO Section 182A
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Source Citations (168)
SRO 981(I)/2015 — Zero-rating IT/ITeS services
https://www.fbr.gov.pk/tax-laws-statutes
pk_only 2015 sro
https://download1.fbr.gov.pk/Docs/2024751675120641IncomeTaxOrdinance,2001-amended-upto30.06.2024.pdf
pk_only 2001 law
https://www.secp.gov.pk/companies-act-2017/
verified 2017 law
SECP Corporate Governance Rules 2019
https://www.secp.gov.pk/corporate-governance/
verified 2019 notification
PSEB IT/ITeS Company Registration
https://techdestination.com/
verified 2024 website
ITO Section 154 — 1% Final Tax on IT exports
https://download1.fbr.gov.pk/Docs/2024751675120641IncomeTaxOrdinance,2001-amended-upto30.06.2024.pdf
pk_only 2024 law
SECP eZfile — Online Company Registration
https://leap.secp.gov.pk/
pk_only website
NITB — National IT Board (e-governance)
https://nitb.gov.pk/
verified website
CCP — Competition Commission of Pakistan
https://www.cc.gov.pk/legislation
verified website
https://www.invest.gov.pk/pakistan-investment-policy/
pk_only 2023 report
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