PARTNERSHIP FIRM REGISTRATION IN PAKISTAN & TAX COMPLIANCES

When two or more individuals make an agreement to form and establish a business a Partnership Firm created. In legal terms it is called Association of Persons (AOP). Partnership Firm govern under the frame work of Partnership Act 1932. AOP performs and work jointly and enjoys all benefits with sharing of works and management. Other than being govern under the framework of Partnership Act 1932, all other major regulatory bodies are same as connected with the Sole Proprietor business. Like Sole Proprietor business, AOP / Partnership Firm is also operated under non-corporate structure.

REGISTRATON OF AOP IN PAKISTAN

With less compliances and working under no regulatory framework as like Sole Proprietorship, Partnership Firm has to be registered in the following Government Departments/ Regulatory Bodies

I. Firm of Registrar Office in the District (Form C )

II. FBR (NTN Registration)

III. FBR (For Sales Tax (GST) if the person is selling goods)

IV. PRA / SRB / KPRA/BRA (For Sales Tax if the person is selling Services)

V. CUSTOMS DEPARTMET (works under FBR) through PSW (Pakistan Single Window) if the person is / to be involved in IMPORT / EXPORT

VI. EXCISE & TAXATION DEPARTMENT for payment of professional taxes.

VII. CHAMBER OF COMMERCE like LCCI, KCCI. its optional.

VIII. IPO for Trade Mark registration. It’s not mandatory but optional. If the Sole Proprietor is keen to save and protect his business Goodwill and BRAND NAME then he (SOLE PROPRIETOR) must register his brand name / TRADE MARK (LOGO) / PATENT / DESIGNS / COPYRIGHT on time before its gets too late.

IX. EOBI if the Sole Proprietor business exceed 5 or more employees in his entity then he is liable to be registered with this Department.

X. PESSI / SESSI / KPK SOCIAL SECURITY / BALUCHISTAN SOCIAL SECURITY if the Sole Proprietor business has any of the employee who is getting Salary in his entity as defined in relevant province Employees Social Security Law (Rs.22,500 for PESSI) then he is liable to be registered with SOCIAL SECURITY Department.

XI. OTHER LABOR LAWS as per defined limit and applicability.

TAX COMPLIANCES FOR AOP / PARTNERSHIP FIRM

Once a Partnership Firm gets registered in any of the above department then the Firm shall bound to make compliances of that regulatory body as per the relevant law.

Here is the details of Tax Compliances which any of the Firm (Partnership) shall have to make mandatory regardless of his business volume and business sector.