Yes, a foreign company is required to obtain specific permissions from various organizations in Pakistan to open and maintain its branch or liaison office.
A foreign company is required to obtain a permission letter from the Board of Investment, with a specific validity period for opening and maintaining of its branch/liaison office in Pakistan. A copy of such a permission letter is required to be furnished with the documents meant for registration. Renewal/ extension of the permission to open/maintain a branch/liaison office is also required and can be obtained from the Board of Investment on the expiry of the validity period of the permission originally granted. Whenever such renewal/extension is granted, a copy must be furnished to the registrar concerned.
Board of Investment (BOI) Approval
- Initial Permission:
- The foreign company must first obtain permission from the Board of Investment (BOI). This involves submitting an application along with several documents, including the company’s registration documents, a resolution to establish the office in Pakistan, and other relevant documentation. The BOI charges a processing fee of $3000 for a branch office and $2000 for a liaison office for the initial period of one year (Invest.gov.pk) (Invest.gov.pk) .
Securities and Exchange Commission of Pakistan (SECP) Registration
- SECP Registration:
- After obtaining BOI approval, the foreign company must register with the Securities and Exchange Commission of Pakistan (SECP) as required by the Companies Act, 2017. This involves filing various forms and documents, including the charter, memorandum and articles of association, and details of directors and officers.
Security Clearance
- Security Clearance:
- The foreign company must also obtain security clearance from the Ministry of Interior. This includes submitting comprehensive documentation about the company’s directors, chief executive, and shareholders, including their bio-data, resumes, qualifications, valid passports, and photographs. Additional Requirements
- National Tax Number (NTN):
- The company must obtain a National Tax Number (NTN) from the Federal Board of Revenue (FBR) and open a bank account in Pakistan through its authorized representative.
Maintenance and Renewals
- Maintaining Compliance:
- The foreign company must comply with ongoing requirements, such as maintaining a register of Pakistani members, directors, and officers at its principal place of business in Pakistan. It must also file annual financial statements and any changes in its particulars with the SECP
- Renewal of Permissions:
- The permission granted by the BOI is typically for a period of 1-5 years and must be renewed. The renewal process involves submitting an online request, a copy of the valid contract agreement, audited accounts, and proof of fees paid (Invest.gov.pk) .
By following these steps and obtaining the necessary permissions from the BOI, SECP, and Ministry of Interior, a foreign company can legally establish and maintain its branch or liaison office in Pakistan. This process ensures compliance with Pakistani regulations and facilitates smooth business operations within the country.