Company Incorporation in Pakistan

Securities Exchange Commission of Pakistan is the sole regulator for company Registration in Pakistan. There are three ways to incorporate company in Pakistan.

• Single Member Company
• Private Limited Company
• Public Limited Company

In Single Member, only one director is required to incorporate a company while in case of private limited, at least two directors are required to form a company and in public limited, 3 directors are required to establish a public limited company.

Before making a company, first you need to understand the concept of capital. Capital is the investment through equity  by the director to finance the assets of a company. Its not necessary to be the same amount of assets owned by the company. As the balance sheet equation depicts the two options for financing of assets.

Assets = Liabilities + Owner’s Equity

These accounting elements reflects the financial position of the company.

Assets = Ownership + Benefits

Liabilities = Payable by Company

Equity = Investment by the Directors of the Company