Entities Comparison in Pakistan or kind of Companies registered under Companies Act, 2017; 1. Public; 2. Private; 3. Section 42; 4. Foreign Companies; 5. Single Member Companies; 6. Limited Liability Partnership LLP;

1. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
Type of entity A separate legal entity
(shares can be listed or
traded on any stock
exchange). Listed
companies are
acquired by several
shareholders.
A separate legal
entity (shares cannot
be listed or traded on
any stock exchange).
Unlisted companies
are acquired by
private investors.
A separate legal
entity one of the
Specialized
Entity.
(Non-Profit
Organization)
–License
required
A separate legal
entity one of the
Specialized Entity
(Non-Profit
Organization )
–License required
– limited by shares
A separate legal
entity limited by
shares and its shares
cannot be listed or
traded on any stock
exchange.
Companies are
acquired by private
investors.
Formed by a sole
founder, who can be
either a natural or a
juridical person. SMC
cannot be listed or
traded on any stock
exchange.
A branch
office is an
outlet of a
company
or, more
generally,
an
organizatio
n that –
unlike a
subsidiary
– does not
constitute
a separate
legal entity.
A Liaison office is
a Representative
office which does
not undertake
any commercial
/trading/
industrial
activity.
A separate legal
entity that is a
Limited Liability
partnership.
Foreign
Ownership
Generally, no
restrictions on foreign
ownership, but due to
trading in stock
exchange shares could
not be restricted to
foreign shareholders
or local shareholders.
Security Clearance of
Foreigner or Foreign
entity will be required.
Generally, no
restrictions on
foreign ownership
and may be wholly
owned by foreigners.
Security Clearance of
Foreigner or Foreign
entity will be
required.
Security
Clearance of
Foreigner or
Foreign entity
will be an
addition from
normal
compliance.
* It is not restricted,
but not recommended
as it would make too
long to incorporate
such organization as
ministry of interior will
take time in an
incorporation of other
companies
(Public/private) there
is prescribe
undertaking which
allows the company to
carry on the business
until the clearance of
MOI but in case of
Section 42 (Not for
Security Clearance
of Foreigner or
Foreign entity will
be required.
Generally, no
restrictions on
foreign ownership
and may be wholly
owned by foreigners
Security Clearance of
Foreigner or Foreign
entity will be
required.
Security Clearance of
Foreigner or Foreign
entity will be
required.
In case of
branch can
conduct
business in
Pakistan via
a local
branch.
Security
Clearance
is not
required.
in case of liaison
office can
conduct business
in Pakistan via a
representative
office.
Security
Clearance is not
required.
Generally, no
restrictions on
foreign ownership
except for activities
that foreigners are
prohibited from
participating in
(e.g., commercial
agency,
importation
activities for
trading purposes
and acquiring land
and/or real estate).
Security Clearance
of Foreigner or
Foreign entity will
be required.

2. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
profit organization)
MOI clearance is
essential, therefore, it
is not recommended,
however, it could be
incorporated.
Limitations on
business
activities
Precluded to launch multi-level marketing
(MLM), Pyramid and Ponzi Schemes, or
other related activities/businesses or any
lottery business.
Precluded to
launch multi-
level marketing
(MLM), Pyramid
and Ponzi
Schemes, or
other related
activities/busine
sses or any
lottery business
and activities in
the areas of
insurance,
banking, savings,
and investment
management.
Precluded to
launch multi-level
marketing (MLM),
Pyramid and Ponzi
Schemes, or other
related
activities/business
es or any lottery
business and
activities in the
areas of insurance,
banking, savings,
and investment
management.
Precluded to launch
multi-level marketing
(MLM), Pyramid and
Ponzi Schemes, or
other related
activities/businesses
or any lottery
business.
Precluded from Multi-
Level Marketing
(MLM) and activities
in the areas of
insurance, banking,
savings, and
investment
management. Can be
only owned by a
single person,
whether natural or a
legal entity.
A branch
must be
formed for
the
purpose of
implementi
ng specific
public or
private
sector
agreement
s in
Pakistan.
Liaison office Can
only be used for
studying the
feasibility of
production or
carry out market
surveys.
Precluded from
activities in the
areas of insurance,
banking, savings,
and investment
management.

3. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
All sectors and activities are
open for foreign investment
unless specifically prohibited
or restricted for reasons of
national security and public
safety.
a) Specified restricted
industries include arms and
ammunitions; high
explosives; radioactive
substances; securities,
currency, and mint; and
consumable alcohol.
Capital
requirements
In general, no minimum capital
requirements, except for specialized
companies. The requirements vary
depending on the company’s activity.
Specialized companies are such as such as
Capital Markets, NBFCs, Insurance
Companies and Section 42 Companies.
https://www.secp.gov.pk/licensing/capital-
markets
No capital No minimum
capital
requirement.
However, this may
vary depending on
the company’s
activity.
No minimum capital
requirement.
However, this may
vary depending on
the company’s
activity.
No minimum capital
requirement.
However, this may
vary depending on
the company’s
activity.
Not applicable. No minimum
capital
requirement. It is
determined by the
partners in the
company. There is
no minimum
capital for LLP.

4. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
Director /
officer
requirement
Minimum of 7 board
of Directors
appointed by the
member/shareholder
s for a term of three
years.
Where at least 1/3
independent
Directors (registered
with Pakistan institute
of Corporate
Governance (PICG)
https://picg.org.pk )
At least one women
representation on the
Board of Directors as
per code of corporate
governance rules.
Minimum of 3 board
of Directors
appointed by the
member/shareholder
s for a term of three
years.
In case of Specialized
company at least 1/3
independent Director
(registered with
Pakistan institute of
Corporate
Governance (PICG)
https://picg.org.pk )
Minimum of 3
board of
Directors
appointed by
promoters
(initial
subscribers of
shares) however
initial promoters
are deems to be
directors.
Minimum of 3
board of Directors
appointed by the
member/sharehol
ders for a term of
three years.
Minimum of 2 board
of Directors
appointed by the
member/shareholde
rs for a term of three
years.
A founder can be a
manager or can
appoint manager(s).
At least one manager. A
manager does not need to be
Pakistani National.
Could be managed
by all partners but
at least 1 manager
is required who is
appointed for the
first time by the
shareholder by
virtue of a decision
issued by the
general assembly.

5. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
Nationality
Requirements
All board Directors and member could be
appointment or elected except for Indian
and Afghan nationals.
All board
Directors and
member could
be appointed or
elected except
for Indian and
Afghan
nationals.
All board Directors
and member could
be appointment or
elected except for
Indian and Afghan
nationals.
All board Directors
and member could
be appointment or
elected except for
Indian and Afghan
nationals.
A company must be
managed by
manager(s) appointed
by a founder.
Manager does not
need to be Pakistani
national.
Must be managed by a
manager(s); manager does
not need to be Pakistani
national.
A company must
be managed by
manager(s)
appointed by
quota-holders
whether Pakistani
or foreigners.
Minimum and
maximum
number of
shareholders or
promoters only
as case may be
Minimum of three shareholders and no
maximum is required.
Minimum of
three promoters
only and no
maximum limit
Minimum of three
promoters and no
maximum limit.
Minimum of 02
shareholders and a
maximum of 50.
Wholly owned by a
natural or a juridical
person. and such
shareholder may
appoint a manager(s)
Shareholders are not
applicable. At least one
manager
Minimum of 02
partners and a
maximum of 50.

6. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
Permissions In case of listing or in
case of any
specialized Company
should obtain
permission from SECP
specialized division or
State Bank of Pakistan
or any other authority
as case may be where
permission is
required such as
media house
registration with
PEMRA
http://www.pemra.g
ov.pk, in case of
engineering Company
registration with
Pakistan Engineering
Council – PEC
https://www.pec.org.
pk and etc.
In case of listing or in
case of any
specialized Company
should obtain
permission from SECP
specialized division or
State Bank of Pakistan
or any other authority
as case may be where
permission is required
such as media house
registration with
PEMRA
http://www.pemra.g
ov.pk, in case of
engineering Company
registration with
Pakistan Engineering
Council – PEC
https://www.pec.org.
pk and etc.
Should obtain
permission from
SECP specialized
Company;
Should obtain
permission from
SECP specialized
Company;
Should obtain
permission from the
relevant authority in
case where license or
permission is
required such as
media house
registration with
PEMRA
http://www.pemra.g
ov.pk, in case of
engineering
Company
registration with
Pakistan Engineering
Council – PEC
https://www.pec.org
.pk and etc.
Should obtain
permission from the
relevant authority in
case where license or
permission is required
such as media house
registration with
PEMRA
http://www.pemra.g
ov.pk, in case of
engineering Company
registration with
Pakistan Engineering
Council – PEC
https://www.pec.org.
pk and etc.
Should obtain permission
from Board of Investment
Should obtain
permission from
the relevant
authority in case
where license or
permission is
required such as
media house
registration with
PEMRA
http://www.pemra
.gov.pk, in case of
engineering
Company
registration with
Pakistan
Engineering
Council – PEC
https://www.pec.o
rg.pk and etc.
License In case of any
specialized
company should
obtain License from
the relevant
Authority.
In case of any
specialized company
should obtain License
from the relevant
Authority.
Permission is
also considered
as License.
Permission is also
considered as
License.
In case of any
specialized company
should obtain
License from the
relevant Authority.
In case of any
specialized company
should obtain License
from the relevant
Authority.
Not applicable. In case of any
specialized
company should
obtain License
from the relevant
Authority.

7. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
Incorporation
procedure
1. Obtain
name of the
Company
(Inc. Form
I);
2. Apply for
the
permission
where
applicable
(in case
specialized
company)
3. Apply for
the license
where
applicable
(in case
specialized
company)
4. Filing of
application
of
Incorporati
on. (Inc.
Form II);
1. Obtain name of
the Company (Inc.
Form I);
2. Apply for the
license where
applicable (in case
specialized
company)
3. Filing of
application of
Incorporation
(Inc. Form II);
1. Obtain
name of
the
Company
(Inc. Form
I);
2. Apply for
the
permissio
n from
SECP
(Mandator
y)
3. Filing of
applicatio
n of
Incorporat
ion (Inc.
Form II);
1. Obtain name
of the
Company
(Inc. Form I);
2. Apply for the
permission
from SECP
(Mandatory)
3. Filing of
application of
Incorporation
(Inc. Form II);
1. Obtain name of
the Company
(Inc. Form I);
2. Apply for the
permission and
license where
applicable (in
case specialized
company
3. Filing of
application of
Incorporation
(Inc. Form II);
1. Obtain name
of the
Company
(Inc. Form I);
2. Apply for the
permission
and license
where
applicable (in
case
specialized
company
3. Filing of
application of
Incorporation
(Inc. Form II);
1. Obtain name of the
Company (Inc. Form I);
2. Submission of the
permission from BOI
3. Filing of application of
Incorporation (Inc. Form
II);
1. Obtain
name of the
Company
(Inc. Form
I);
2. Apply for
the
permission
or License
where
applicable
(in case
specialized
company)
3. Filing of
application
of
Incorporati
on (Inc.
Form II);
Post
Incorporation
Compliance
1. Registered office:
in case registered
office was not
obtained at the
time of
incorporation
with 30 days from
incorporation -
(Form 21)
Note:
(Correspondence
1. Registered
office: in
case
registered
office was
not obtained
at the time of
incorporatio
n with 30
days from
1. Registered
office: in
case
registered
office was
not
obtained at
the time of
incorporati
on with 30
days from
1. Registered
office: incase
registered
office was not
obtained at
the time of
incorporation
with 30 days
from
incorporation
- (Form 21)
1. Registered
office: incase
registered office
was not obtained
at the time of
incorporation
with 30 days
from
incorporation -
(Form 21)
1. Registered office:
incase registered
office was not
obtained at the
time of
incorporation with
30 days from
incorporation -
(Form 21)
Not applicable 2. Registered
office: incase
registered
office was not
obtained at the
time of
incorporation
with 30 days
from
incorporation -
(Form 21)

8. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
address may be
used during
incorporation,
once the
Company is
incorporated
should specify the
registered
address of the
Company
(physical
premises)).
2. Subscription
Money:
deposition
subscribed
amount (initial
subscription
reported in MOA
and AOA) – (Form
I);
3. Commence of
business
Certificate;
4. Appointment of
independent
Directors within
30 from
incorporation–
(Form 29);
5. Appointment of
Auditor within 90
days from
incorporation –
(Form 29);
6. Appointment of
legal Advisor
incorporatio
n - (Form 21)
Note:
(Correspondenc
e address may
be used during
incorporation,
once the
Company is
incorporated
should intimate
the registered
address of the
Company
(physical
premises)
Subscription
Money:
deposition
subscribed
amount (initial
subscription
reported in MOA
and AOA) –
(Form I);
2. Commence
of business
Certificate;
3. Appointment
of Auditor
within 90
days from
incorporatio
n – (Form
29);
4. Appointment
of legal
incorporati
on - (Form
21)
Note:
(Correspon
dence
address
may be
used during
incorporati
on, once
the
Company is
incorporate
d should
intimate
the
registered
address of
the
Company
(physical
premises)
2. Appointme
nt of
Auditor
within 90
days from
incorporati
on – (Form
29);
3. Appointme
nt of legal
Advisor
within 14
days from
incorporati
Note:
(Corresponde
nce address
may be used
during
incorporation
, once the
Company is
incorporated
should
intimate the
registered
address of the
Company
(physical
premises);
2. Subscription
Money:
deposition
subscribed
amount
(initial
subscription
reported in
MOA and
AOA) – (Form
I);
3. Appointment
of Auditors
within 90 days
from
incorporation
– (Form 29);
4. Appointment
of legal
Advisor within
14 days from
Note:
(Correspondenc
e address may be
used during
incorporation,
once the
Company is
incorporated
should intimate
the registered
address of the
Company
(physical
premises);
2. Subscription
Money:
deposition
subscribed
amount (initial
subscription
reported in MOA
and AOA) –
(Form I);
3. Appointment of
Auditors within
90 days from
incorporation –
(Form 29) incase
paid up capital is
more than 1
million;
4. Appointment of
legal Advisor
within 14 days
from
incorporation
incase paid up
Note:
(Correspondence
address may be
used during
incorporation,
once the Company
is incorporated
should intimate
the registered
address of the
Company (physical
premises);
Note:
(Corresponden
ce address may
be used during
incorporation,
once the
Company is
incorporated
should intimate
the registered
address of the
Company
(physical
premises);

9. Description
Public Limited Company Foundation OR
NPO under
Section 42
[Not Having
Share Capital]
Foundation OR
NPO under
Section 42
[Having Share
Capital]
Private
Limited
Company -
Two or more
shareholders
Single
Member
Company – (SMC)
Only one natural
persons as
shareholder
Foreign Company in
Pakistan (branch
office/Liaison office)
Limited Liability
Partnership [LLP]
Listed Company Unlisted Company
Branch
Office
Liaison Office
Taj Consultants
Syed Muhammad Humza Hussain
Mobile: +92 (0)335 2951436
sm_humza@outlook.com
https://www.linkedin.com/in/humza
within 14 days
from
incorporation –
(Form 29);
7. Appointment of
Company
Secretary and
Chief finance
officer within 14
days from
incorporation –
(Form 29);
8. Appointment of
Cost Auditor (Not
mandatory in all
case) – (Form 29);
9. Registration with
CDC
Advisor
within 14
days from
incorporatio
n – (Form
29);
5. Appointment
of Company
Secretary
and Chief
finance
officer within
90 days from
incorporatio
n – (Form
29);
6. Appointment
of Cost
Auditor (Not
mandatory in
all case) –
(Form 29);
7. Registration
with CDC in
case of
specialized
companies.
on – (Form
29);
incorporation
– (Form 29);
capital is more
than 7.5 million;
(Form 29);