Registering a Retail Business in Pakistan: NTN, STRN, SECP, and Local Licences

Business Structure Options in Pakistan

Before registering, choose your business structure:

• Sole Proprietorship: Simplest structure, no separate registration needed beyond NTN and local licences. The business and owner are legally the same entity.
• Partnership: Two or more partners. Requires a partnership deed registered with the Registrar of Firms in your province.
• Private Limited Company: Separate legal entity registered with SECP. More complex but limits personal liability and enables easier bank account opening and investor participation.

FBR National Tax Number (NTN)

Every business in Pakistan must register with FBR for a National Tax Number (NTN) through the IRIS portal (iris.fbr.gov.pk). For sole proprietors, the NTN is linked to their CNIC. For companies, it is separate from the owners' CNICs. The NTN is required to open a business bank account, file income tax returns, and issue certain B2B invoices.

Sales Tax Registration Number (STRN)

If you supply taxable goods, you must register for Sales Tax with FBR to get a Sales Tax Registration Number (STRN). Registration is also through IRIS. Retailers with annual sales below Rs. 10 million may be exempt from sales tax registration as a Tier-2 or small retailer, paying a fixed sales tax through their electricity bill instead. Check your applicable tier before registering.

SECP Registration for Private Limited Companies

If you choose to incorporate as a Private Limited Company, register with the Securities and Exchange Commission of Pakistan (SECP) through eServices (eservices.secp.gov.pk). You will need:

• Proposed company name (check availability first)
• CNICs of all directors and shareholders
• Memorandum and Articles of Association
• Registered office address
• Minimum paid-up capital (Rs. 100,000 for a private limited company)

Local Licences and Permits

Provincial and municipal authorities require separate licences:

• Trade Licence: From your city's Metropolitan Corporation or Municipal Committee
• Food Business Licence: Required for any food retail or preparation, from the Punjab Food Authority (PFA), Sindh Food Authority (SFA), or equivalent provincial body
• Professional Tax: Annual tax payable to provincial government — varies by province and business size
• Fire NOC: Required for larger premises from the relevant Fire Brigade

Bank Account Opening

Business bank accounts require your NTN certificate, trade licence, CNIC, and for companies, SECP incorporation certificate. The bank will also need proof of business address. Most major commercial banks (HBL, MCB, UBL, Meezan) have dedicated SME banking branches that are familiar with these requirements.