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Pakistan welcomes foreign investment in most sectors, generally allowing up to 100% foreign ownership. Overseas Pakistanis, too, increasingly invest at home. The key is choosing the right structure and recording your investment correctly from the start.
Your options
| Structure | What it can do | Main approvals |
|---|---|---|
| Subsidiary company | Any lawful business; a separate Pakistani legal entity with limited liability | SECP incorporation; security clearance of foreign directors/shareholders |
| Branch office | Commercial activities permitted in its approval, as part of the foreign company | Board of Investment permission; registration with SECP |
| Liaison office | Promotion and liaison only — no revenue-earning activity | Board of Investment permission; registration with SECP |
| Joint venture | Partnering with a Pakistani company, usually through a jointly owned company | As for a company, plus a shareholders' agreement |
Bringing money in — and taking profits out
Foreign equity should come through normal banking channels into the company's account, with the bank recording it as foreign investment. Proper documentation at this stage makes it much easier to repatriate dividends and capital later. Keep the bank's records of each inward remittance and share issue.
Tax and registrations
- NTN for the company, sales tax registration if you supply taxable goods, and provincial services tax registration if you provide taxable services.
- Withholding tax on dividends, royalties and fees paid abroad — often reduced under Pakistan's double taxation agreements.
- PSEB registration for IT and IT-enabled services exporters.
- Special economic zones and sector schemes may offer incentives; eligibility conditions apply.
A typical timeline
- Week 1: structure decided, name reserved, documents drafted and sent for signature abroad.
- Weeks 2–3: documents attested and filed; security clearance initiated where applicable.
- After incorporation: bank account, capital remittance, tax registrations and operations.
Security clearance and branch approvals can take longer; we keep you informed at each step.
This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.