A business run by an individual without other subordinates or decision-makers is regadred as the sole porpritorship business. In other words, the company can be referred to as a sole trader. The individual who runs the company takes responsibility for all the decisions that affect the business and ensures the business runs smoothly. Therefore, one of the best ways to start a business in Pakistan is to create a sole proprietorship business where you are the sole controller of the company’s affairs.
As a sole proprietor in Pakistan, you cannot pay any form of business tax; you pay income tax only. So before you can think of registering your business, you should have a business you want to start.
Before you can start a sole proprietorship business in Pakistan, you have to dully follow the steps that have been highlighted below.
- Think of a suitable name for your business.
- Get the list of basic company stationery such as company letterhead and visiting cards.
- Get a business stamp.
- Ensure you have a bank account with the title of the sole proprietorship business you would be operating. In addition, the bank manager will require that you, as the sole proprietor of the company, have a signature and stamp on the letterhead of the company.
- Get the bank statements of the account you just opened.
- Besides, to follow the steps highlighted below dully you should apply for a National Tax Number (NTN) certificate; you will not need to use it for NTN if you, as a sole proprietor, have a job at hand already. Before you can apply for your NTN, your account number and bank statement will be required, and the soft copy of the sole proprietor’s ID card.
How To Register Your Sole Proprietorship Business In Pakistan
To register your sole proprietorship business, which makes your business legal, you, as a sole proprietor, have to get your NTN number.
How to get your National Tax Number (NTN)
To get your NTN, you need to visit the Federal board of revenue (FBR) office or visit their website. The FBR is the organization responsible for the provision of NTN to citizens in Pakistan.
- Visit the FRB website, which is e.fbr.gov.pk. You will see all procedures you are to follow on the website.
- Click on “new e-registration” from the drop-down of the “e-registration menu.”
- Select the individual as the type of taxpayer.
- You will be asked for some information; ensure to fill in the information correctly.
- Fill the CNIC/NTN/Reg.Inc, according to the taxpayer type you selected, name of taxpayer, enters image character and click okay.
- When you are done providing the necessary details, save the form.
- Click on the verify button to get the form you have filled verified.
- Click on the submit button to get your filled form submitted. The system will assign a token number to your application. You can always check on the status of your application by calling the helpline 051-111-772-772, or you check online.
- Three days after your application has been approved, you will be sent an email for verification.
- Lastly, visit any taxpayer facilitation centers to submit a signed copy of your online application alongside other necessary documents such as letterhead, copy of CNIC, paid electricity bill)
You will get your NTN certificate at no fee charged.