When two or more persons need to register a business as a partnership, it is called a Partnership AOP (Association of Persons), they need to formally draft the Partnership deed, and register it to registrar of the firm, and subsequently needs to register it with Federal Board of Revenue FBR to get National Tax Number NTN for firm.
How to Register a Partnership AOP in Pakistan
To register a Partnership Association of Persons (AOP) business in Pakistan, you need to follow these general steps:
Choose a Business Name:
- Select a unique and appropriate name for your partnership AOP
Draft a Partnership Deed
- Prepare a written partnership deed that outlines the terms and conditions of your partnership. Include details such as the names of partners, their respective capital contributions, profit sharing ratios, roles and responsibilities, and other relevant clauses. It's advisable to consult a lawyer to ensure the deed meets legal requirements.
Register for National Tax Number (NTN):
- Visit the Federal Board of Revenue (FBR) or their online portal and apply for an NTN for your partnership AOP. You will need to provide personal information and details about your partnership.
Register with the Sales Tax Department (if applicable):
- If your partnership AOP is involved in providing taxable goods or services, you may need to register for Sales Tax. This registration is mandatory for businesses with an annual turnover above the specified threshold. You can apply online through the FBR portal.
Register with the Provincial Revenue Authority (if applicable):
- Depending on the nature of your partnership AOP, you may need to register with the respective Provincial Revenue Authority for additional taxes, such as the Punjab Revenue Authority (PRA) or the Sindh Revenue Board (SRB). Check with the relevant authority in your province.
Register with Chamber of Commerce and Industry (optional):
- Joining your local Chamber of Commerce and Industry is optional but can provide networking opportunities, access to business resources, and representation in relevant forums. You can contact the chamber in your area to inquire about the registration process.
Open a Bank Account:
- Visit a commercial bank of your choice and open a business bank account in the name of your partnership AOP. You will need the partnership deed, NTN, CNIC (Computerized National Identity Card) of partners, and other relevant documents.
Note:
- AoP must have to Maintain Business Records: It's crucial to maintain accurate and organized business records, including financial statements, invoices, receipts, and any other relevant documents. This will help you comply with annual tax obligations and facilitate smooth business operations.
