Which Registrations does IT Industry require?
For IT Industry in Pakistan multiple certifications validate skills and expertise in the field of work where competition for innovation, creativity, and quality continue to increase. These third-party evaluations / memberships / associations allow clients to feel assured and optimistic about the top tier quality of work being delivered.
- The 4th Industrial Revolution is currently taking place and it is digital. The actual size of the 2016 digital economy was $11.5 trillion globally, which was 15.5% of the global GDP. The base digital assets comprise one-third, or $3.8 trillion, while digital spillover effects account for the remaining two-thirds, $7.5 trillion
- Pakistan, which has about 60% of its 200 million population in the 15 to 29 age group, represents an enormous human and knowledge capital. Pakistan has more than 2000 IT companies & call centers and the number is growing every year. Pakistan has more than 300,000 English-speaking IT professionals with expertise in current and emerging IT products and technologies, 13 Software technology parks, More than 20,000 IT graduates and engineers are being produced each year coupled with a rising startup culture.
- In accordance with Pakistan Vision 2025 and the Digital policy of Pakistan 2018, the ICT industry size is targeted to reach $20 billion by 2025.
Other Affiliations/ Registrations
Registrations / Evaluations / Memberships / Associations required by IT Industry
Entity Incorporation related Registrations
Deciding on a Legal Entity and Associated Tax Implications
Apart from professional affiliations/ registrations the IT Companies can face problems in Deciding on a Legal Entity and Associated Tax Implications.
Of all the decisions you make when starting a business, probably the most important one relating to taxes is the type of legal structure you select for your company.
Not only will this decision have an impact on how much you pay in taxes, but it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money.
Paying taxes might be easy but collecting on behalf of government and their compliance is complicated.
Even after you settle on a business structure, remember that the circumstances that make one type of business organization favorable are always subject to changes in the laws.
Types of business entities:
- Sole Proprietorship
- Partnership
- Limited Liability Partnership
- SMC Private Limited
- Private Limited Company
- Limited Company
The above legal entities plays very important role in getting yourself started with your business idea in Pakistan. When you are going into a new venture in Pakistan and before starting business in Pakistan you should be very careful in deciding on a legal entity in Pakistan.
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IT Companies/ ITeS can register themselves with Federal Board of Revenue as Sole Proprietor / Single Owner in order to run Business Operations in business name and bank account.
For Tax Return Filing and other tax related compliance are required to be filed with FBR as per law. |
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An IT Companies/ ITeS can be registered with SECP as a company limited by share may be incorporated having following forms:
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A Limited Liability Partnership (LLP) is a form of business having status of a legal entity separate from its partners and have perpetual succession. Any two or more persons, associated for carrying on a lawful business with a view to profit, may form an LLP. |
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Another entity type that IT Professionals can opt for Partnership Firm. A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. Every partnership necessarily involves a partnership agreement. |
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IT Companies can register with EOBI if they meet the critera. Registration of Employers & Insured Persons Under Employees’ Old-Age Benefits Rules 1976. An employer shall before expiration of thirty days from the day on which the Act becomes applicable to the establishment, communicate to the Institution. |
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Registration with PESSI can get IT Companies benefits to the secured workers and their families: Sickness benefits, Injury benefit, Iddat benefit, Maternity benefits, Gratuity, Disablement pension, Survivor’s pension, Artificial parts, Funeral grant, Financial assistance, Free education of secured worker’s children |
Call us for more information on how to Kick-Start Business in Pakistan with options available for type of entity to select and knowing the legal obligations, tax compliance requirements, corporate compliance requirements, filing of statements under section 165 and 149.
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