Pakistan is emerging as an Asian Tiger in race of economic development in the world. Our Neighbors China & India already got second and fifth position in terms of GDP respectively. As all emerging economies are opening door for foreigner investors, similarly Pakistan warmly welcome foreign Direct Investment in the country.
There are three possible ways to establish entity in Pakistan for foreigners.
- Branch Office
- Liaison Office
- A limited Company with Foreign Directors
Branch Office: Branch Office is established by a foreign company to fulfill its contractual obligations with the public or private sector in Pakistan. Their activity will be restricted to the work mentioned in the agreement/contract signed. However they cannot undertake any commercial/trading activities.
Liaison Office: Liaison Office is established by a foreign company for promotion of product(s), provision of technical advice & assistance, exploring the possibility of joint collaboration and export promotion. However they cannot undertake any commercial/trading activities.
Third option is more viable and mostly used by the foreigners as it allow to do all kinds of business in Pakistan. There are some myths that one Pakistani is required to incorporate a company in Pakistan which is totally a wrong concept. Even a single foreigner can register Single Member Company in the country without any hurdle.
- Single Member Company Private Limited (1 Foreigner)
- Private Limited Company (2 Foreigner or 1 Pakistan & 1 Foreigner)
- Public Limited Company (3 Foreigners or other possible options)
LLP(Limited Liability Partnership) is not allowed for foreigners yet in Pakistan.
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