Foreign Company Registration in Pakistan: SECP Guide for Investors
Pakistan welcomes foreign investment, and a foreign company can establish a legal presence here either by registering as a foreign company, typically as a branch or liaison (representative) office, or by incorporating a local subsidiary with SECP. This guide from Global Law Company explains the options and the process for foreign company registration in Pakistan under the Companies Act 2017, and the practical steps that keep a foreign investor compliant from day one.
Entering a new market is as much a legal exercise as a commercial one. The structure you choose determines your tax exposure, your liability, the activities you may lawfully carry out, and the ease with which you can repatriate profits. Choosing wrongly can be expensive to unwind, so the structuring decision deserves careful thought before any filing is made.
Ways a Foreign Business Can Enter Pakistan
A foreign company has three main routes. It can open a branch office to execute a specific contract or project in Pakistan; it can open a liaison (representative) office to promote the business and explore the market without undertaking commercial activity or earning income; or it can incorporate a local subsidiary (usually a private limited company) that is a separate Pakistani legal entity. The right choice depends on whether you intend to trade and earn revenue, the expected duration of your presence, and your tax and liability preferences. We advise on the trade-offs before you commit, and we are candid where one option is clearly better suited to your plans.
Registering a Foreign Company (Branch and Liaison Office)
A foreign company that establishes a place of business in Pakistan must register with SECP within the period prescribed under the Companies Act 2017, filing the required documents. These generally include certified copies of the company's charter or constitution, particulars of its directors and officers, the address of its principal office in Pakistan and abroad, and the name and address of a person resident in Pakistan authorised to accept service on its behalf. Branch and liaison offices also typically require permission from the Board of Investment, and documents executed abroad usually need proper attestation and legalisation (and, where applicable, an apostille) before they can be filed.
Incorporating a Local Subsidiary
Where a foreign investor wants a lasting commercial presence with limited liability, incorporating a private limited subsidiary is often the cleanest route. The subsidiary is a Pakistani company that can be wholly or partly foreign-owned, subject to sector-specific rules and any restrictions in regulated industries. The process follows our principal company registration in Pakistan guide, with additional attestation requirements for foreign directors and shareholders and, in some sectors, prior security or regulatory clearance. A subsidiary keeps the foreign parent's liability contained and is often the most comfortable structure for banks and local counterparties to deal with.
Compliance and Tax
Once registered, a foreign company or subsidiary must obtain an NTN from FBR, comply with ongoing SECP filing obligations, and meet the tax and regulatory requirements for its activity, including any withholding tax and repatriation rules. We provide a compliance roadmap so foreign clients are never caught out by a missed deadline, and we coordinate with local accountants and bankers to keep the entity in good standing.
Practical Issues for Foreign Investors
Beyond the formal registration, foreign investors commonly need help with opening a bank account that accepts foreign capital, structuring the inflow of investment so it is properly recorded, hiring local staff in compliance with labour law, and protecting intellectual property. We act as a single point of contact through this set-up phase, so that the legal, regulatory, and practical pieces fit together rather than being tackled in isolation.
Repatriation of Profits and Capital
A question every foreign investor rightly asks is how money comes back out. Pakistan permits the repatriation of profits, dividends, and capital subject to the rules administered through the banking system and the State Bank framework, provided the original investment was properly brought in and recorded. This is precisely why the set-up phase matters so much: investment that is documented correctly on the way in, through the right banking channels and registrations, flows out far more easily later, while poorly recorded inflows can create real obstacles to repatriation. We advise on structuring the investment so that returns can be taken out smoothly and lawfully when the time comes.
Choosing and Protecting Your Foothold
The decision between a branch, a liaison office, and a subsidiary should be driven by your commercial plan, not by whichever route looks quickest. A liaison office makes sense for early market exploration; a branch fits a defined project or contract; a subsidiary suits a committed, long-term, revenue-generating presence with contained liability. Whatever the choice, a foreign investor should also protect its brand and intellectual property in Pakistan from the outset and ensure its contracts with local counterparties are enforceable here. We help foreign clients see the whole board, not just the registration form, so the entry is built to last.
Enter the Pakistani Market with Global Law Company
Contact Global Law Company to plan and execute your entry into Pakistan. Call 0333 4125951, email globallawcompany@gmail.com, or visit our central corporate offices at 3rd Floor, Ahmad and Shafi Plaza, 13 Fane Rd, Lahore, 54000. See also our specialized corporate lawyer in Pakistan services dashboard.
Frequently Asked Questions
Can a foreigner own a company in Pakistan?
Yes. Foreign investors can incorporate a local company that is wholly or partly foreign-owned, or register a branch or liaison office, subject to sector-specific rules.
What is the difference between a branch and a liaison office?
A branch office can carry out the specific commercial activity it is approved for; a liaison office only promotes the business and explores the market without commercial trading.
Do foreign documents need attestation?
Yes. Documents executed abroad generally require proper attestation and legalisation before they can be filed with SECP.
Is Board of Investment approval required?
Branch and liaison offices generally require permission from the Board of Investment. We handle this alongside the SECP registration.
Which structure is best for a long-term presence?
For a lasting commercial presence with limited liability, a local subsidiary is often the cleanest route. We advise on the best fit for your specific plans.