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Local business incentives
| Pakistan offers different aids and incentives to foreign investments. Incentives depend on the sector of the company. To get information on aids and incitements, investors can contact both the Pakistan Board of Investment, or the Ministry of the concerned sector. For industries specialized in exports, an Export Processing Zone (KEPZ) has been created in Karachi to attract foreign investors. The KEPZ grants various aids and incitements such as federal, provincial and council tax exemptions, duties and taxes exemptions for imports of machines and industrial equipment, administrative opportunities concerning imports and exports etc. Finally to accelerate the increase of foreign industrial investments, the Special Industrial Zones (SIZs) have been created in order to develop the 12 Pakistan's industrial provinces. The SIZ offer tax advantages, credits and administrative opportunities.
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Legal forms of companies
| Form |
Number of partners/shareholders |
Minimum and/or maximum capital |
Liability |
Registration fee |
Release of financial documents |
|
Private Company |
Minimum 2. |
PKR 100,000 |
Liability is limited to the amount contributed. |
They depend on the amount of the capital subscribed. From PKR 100 to 5,000. |
Yes |
|
Public Company |
Minimum 7 |
PKR 100,000 |
Liability is limited to the amount contributed. |
They depend on the amount of the capital subscribed. From PKR 100 to 5,000. |
Yes |
|
Company limited by shares. |
Minimum 2. |
No minimum capital. |
Liability is limited to the amount contributed. |
They depend on the amount of the capital subscribed. From PKR 100 to 5,000. |
Yes |
|
Company limited by guarantee |
Minimum 2. |
No minimum capital. |
Liability is limited to the amount of the guarantees. |
They depend on the amount of the capital subscribed. From PKR 100 to 5,000. |
Yes |
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Unlimited Company |
Minimum 2. |
No minimum capital. |
Liability is unlimited. |
They depend on the amount of the capital subscribed. From PKR 100 to 5,000. |
Yes |
Registration and licensing procedures
The company's founders have to establish a "Memorandum" in accordance with the principles of the "Companies Ordinance " of 1984. Depending on the activity of the company, founders must obtain an authorization from the different ministries concerned. Registration is made with the different authorities where the company is located.
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Foreign exchange control
There is no restriction on exchange controls in Pakistan. Free repatriation of profits and capital is carried out.
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Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Pakistan except in certain sectors where investments are subject to limitations.
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Foreign Direct Investment inflows
in Pakistan
| FDI inflows |
2003 |
2004 |
2005 |
World rank (*)
2005 |
| FDI inflows (USD million) |
534 |
1118 |
2183 |
.. |
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.
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| Last modified in
2006 - ongoing update
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