Business

How to Get NTN Number in Pakistan

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.

how to get ntn in pakistan

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, like ABC 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 National Tax Number (in short NTN)

and

The 2nd is Indirect Tax type, called as Sales Tax Registration (in short STRn or STR)

It is simple to get NTN but 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 product value.

Let’s say, Product price is 100 PKRs, you will make a bill of 100 Rupees and add 17 Rupee Sales Tax. 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 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 for NTN you just need to have 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-Proprietorship, Partnership, Joint Stock, Public Limited or you are a salaried person. You are also able to register NGO, Trusts and others

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 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)

Necessary prescribed fee will be paid and 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 from Benefits of Business Registration and that has been major cause in less number of registered businesses. The second main reason could be that very little of us knows How to Register a Business in Pakistan?

Government Facilitation

Government in every country are 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 business are always prioritized to non registered from General public. They have confidence in the 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 comparing to other company’s same product because you know the first one? The same case is here. Registered business are reputed and their products or services are trust worthy. Their patents, trade marks can not be copied.

Bank Facilities

Now a days, in Pakistan it has been compulsory to have NTN if you are willing to open bank account with your business name and you get NTN after you get register under fbr. Banks facilitates in the way to offer less interest rate on loans, offers free banking services like cheque books, atm cards, statements, pay orders and many more.

Claims

Often we hear that people had loss, their creditors are not paying dues. Ever thought why? because of no registration. A registered business can file a lawsuit to creditors for non payments, authorities protect their rights and help in settlements of claims.

Partnership Benefits

The rights and privileges of new partner are also protected in registered firm, therefore people can easily invest in your business. More Capital means more Growth.

Debtors and Creditors Protection

All of the registered business maintain their records, they have book-keeping. Debtors & Creditors trust registered business for their rights, liabilities and debts. Investors trust easily to registered companies & invest in shares. Whole sellers and retailers can pay advance for their next orders.

International Market

If you are planning to offer your product to international market, how will you offer 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.

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