All of us think the same when we plan to start our business. We must register our business to be safe but how can we have NTN (National Tax Number
When I was a university student and planning to start my business after completion, I had the same confusion with very little information regarding Business Registration in Pakistan (expect basics studied in university).
Somehow, people manage to run an unregistered business but in the broader sense, non registered businesses and people running those businesses are cheating their homeland. After being registered, you pay monthly and annual taxes on sales and profits depending upon your form of business. These collected amounts are reinvested for country’s betterment.

Which Business to register?
There are multiple types of businesses including individual, partnership, public and private limited companies. Each of them have different features and benefits and entirely different from each other in various manners
How to Register a Business & Get NTN
There is some basic information you need to provide to the registrar at FBR or registration authority for giving you a legal authority of running a business in a proper way.
Your preferred Company Name i.e, Al Haq Traders, XYZ Enterprises
Location of the business, principal office, and branch office with their complete address and contact details.
Business Nature or Principal Activity (Manufacturing, Trading, Retail, Wholesale, Services, etc)
Contact details of Partners (if partnership company)
An Active Bank Account
As we are in Pakistan, I shall force you to get Get NTN & GST. There are two stages of registration of a Business under FBR.
The 1st one is the National Tax Number (in short NTN)
and
The 2nd is the Indirect Tax type, called Sales Tax Registration (in short STRn or STR)
It is simple to get NTN but a little harder to register for STRn. By registering for NTN, you need to pay annual taxes on the income; as it is Income Tax Registration but after registering you are bound to pay Sales Tax every month on the sales amount. Which is 17% of the product value.
Let’s say, Product price is 100 PKRs, you will make a bill of 100 Rupees and add 17 Rupee Sales Tax. The customer will pay you 117 and the above 117 will be deposited to FBR account at the end of the month during submitting the sales tax return. The remaining 100 is yours but at the end of the fiscal year, you are bound to pay Income tax from amounts collected from these 100 rupee sales.
This is known as Income Tax Returns
You need to get your NTN first and if you are interested in acquiring your Sales Tax Registration but NTN you just need to have the above details and your National Identity Card (in Pakistan issued by Nadra).
While you are applying, keep it in mind to choose the right business category from Sole-
Required Information
Business Category: Individual / Proprietorship; the Individual must
A. personally go to any Facilitation Counter of any Tax House
B. Bring the following
Original CNIC
Cell phone with SIM registered against own CNIC
Personal Email address belonging to him
Original certificate of maintenance of personal bank account in his own name
Original ownership evidence of business premises
Original paid utility bill of business premises not older than 3 months
To Register An AOP, any one of the Members / Partners Must
A. personally go to any Facilitation Counter of any Tax House
B. Bring the following
Original partnership deed, in case of Firm
Original registration certificate from Registrar of Firms, in case of Firm
CNICs of all Members / Partners
Original letter on letterhead of the AOP signed by all Members / Partners, authorizing anyone of the Members / Partners for Income / Sales Tax Registration
Cell phone with SIM registered against his own CNIC but not already registered with the FBR
Email address belonging to the AOP
Original certificate of maintenance of bank account in AOP’s name
Original evidence of tenancy/ownership of business premises, if having a business
Original paid utility bill of business premises not older than 3 months, if having a business.
For Company Registration, the Principal Officer must
A. personally go to any Facilitation Counter of any Tax House
B. Bring the following
Incorporation Certificate of the Company
CNICs of all Director
Original letter on letterhead of the company signed by all Directors, verifying the Principal Officer and authorizing him for Income Tax / Sales Tax Registration;
Cell phone with SIM registered against his own CNIC but not already registered with the FBR
Email address belonging to the Company
Original certificate of maintenance of bank account in Company’s name;
Original evidence of tenancy/ownership of business premises, if having a business
Original paid utility bill of business premises not older than 3 months, if having a business.
After collection of above-mentioned documents
Sign the form: The statement of the prescribed form shall be signed by all the partners and duly verified by them.
Fee Submission (if any, like NTN and STR is has no fee but Chamber registration, trademark authority, logo, etc have their fee)
The necessary prescribed fee will be paid and the form will be submitted to the local registrar’s office or advised bank branch.
After the registrar satisfaction, that the requirements of registration have been duly complied with, he/she shall issue you a Certificate (NTN or GST)
Benefits of NTN Number in Pakistan
Having a registered business adds so much value to your business in the following domains
General Benefits of Business Registration
Businesses are commonly unaware of the Benefits of Business Registration and that has been a major cause in less number of registered businesses. The second main reason could be that very few of us know How to Register a Business in Pakistan?
Government Facilitation
The government in every country is always focusing on facilitating business for more productivity and economic growth. Many facilities and privileges to registered firms are provided like protection of business and production, which makes it more profitable
Public’s Confidence
Registered businesses are always prioritized to non-registered from the General public. They have confidence in registered firms because registered companies are working under Government supervision and authorities. Customers can take legal action against fraud or misrepresentation. Thus They make business contracts with them without any fear.
Business Repute
Have you ever bought a small pack of snacks or biscuits compared to other company’s same product because you know the first one? The same case is here. Registered businesses are reputed and their products or services are trustworthy. Their patents, trademarks can not be copied.
Bank Facilities
Nowadays, in Pakistan, it has been compulsory to have NTN if you are willing to open a bank account with your business name and you get NTN after you get register under fbr. Banks facilitate in the way to offer less interest rate on loans, offers free banking services like checkbooks, atm cards, statements, pay orders, and many more.
Claims
Often we hear that people had lost, their creditors are not paying dues. Ever thought why? because of no registration. A registered business can file a lawsuit to creditors for nonpayments, authorities protect their rights and help in settlements of claims.
Partnership Benefits
The rights and privileges of a new partner are also protected in the registered firm, therefore people can easily invest in your business. More Capital means more Growth.
Debtors and Creditors Protection
All of the registered businesses maintain their records, they have to book-keeping. Debtors & Creditors trust registered businesses for their rights, liabilities, and debts. Investors trust easily to registered companies & invest in shares. Whole sellers and retailers can pay in advance for their next orders.
International Market
If you are planning to offer your product to the international market, how will you offer it if you are not registered under related local authorities? International buyers can easily be targeted by showing them your registration or certificates like ISO, Food Safety etc.




Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.