How to Register a Software House in PakistanBefiler December 12, 2022
Opening and running a successful software house in Pakistan requires determination, hard work, and knowledge of the country’s registration process. If you are an entrepreneur looking to open your own software house in Pakistan, this blog post is for you! In it, we will discuss the registration process and what you need to know before taking the plunge.
The Government of Pakistan has recognized the potential and ability of IT Sectors to promote business in their country. So far, foreign income from the IT sector, up until June 30th 2025, had previously been exempted from taxation. The new reforms have withdrawn this exemption but offer a 100% tax credit for those who meet specific criteria; no Turnover Tax is required to claim it! To determine eligibility, companies must satisfy four
- Major government requirements.
- Submission of income tax return
- Submission of withholding tax statements
- Submission of provincial sale tax returns
- Withholding tax should be deposited in the national exchequer
Registering Your Business
The first step when registering your business is to select a name. This can be done through the Securities and Exchange Commission of Pakistan (SECP). The name should reflect your company’s mission and goals. Once you have chosen a name for your company, it must be registered with SECP. This will require filing out the relevant forms and submitting them along with the necessary documents; these documents may include proof of identity, bank statements, etc.
Registration with Pakistan Software Export Board (PSEB)
The next step is registering your software house to Pakistan Software Export Board (PSEB). PSEB is a Government of Pakistan initiative tasked to promote and develop the country’s IT sector both domestically and internationally. Companies must register with PSEB to access various tax benefits from the Income Tax Department, providing an incentive for businesses whilst also assisting the government in tracking remittances made abroad through their valuable contribution towards documenting economic movements. Through such actions, insights into specific areas where technology can spur economic growth are gained as further foreign investment pour into this thriving Pakistani industry.
Creating Company Policies
Once all legal procedures are completed, you must develop internal policies specific to software houses that adhere to local laws and regulations, such as labor laws or intellectual property rights laws. These policies are essential because they provide clear guidelines on how employees should conduct themselves while working together or with clients/customers. Additionally, these policies also define the roles & responsibilities of each employee within their department, allowing everyone to stay organized and efficient while working towards achieving organizational goals.
Starting a software house in Pakistan can seem intimidating, but following this guide should make the process much smoother! Remember that success depends heavily on having proper documentation in place before starting operations, such as registering with SECP and PSEB, respectively. Additionally, developing company policies is also essential for maintaining efficiency within the organization, which helps create a better customer experience down the line! If you’re a budding business owner in Pakistan with dreams of launching your own software house, count on the expert advisors at team Befiler to get you started heading down the right path.