Salaried individuals, or individual deem to register business as sole proprietor via an easiest way to register as business entity in Pakistan to fulfil taxation compliance, they just need to register it with Federal Board of Revenue FBR portal where they are issues National Tax Number NTN.
How to Register a NTN for Salaried Individuals or Sole Proprietorship Business in Pakistan
To register as a salaried individual or sole proprietorship business in Pakistan, you need to follow these general steps:
For Salaried individual:
- Just need to register with CNIC and For Business: Choose a Business Name: Select a unique and appropriate name for your sole proprietorship. Make sure it doesn't infringe on any existing trademarks and is in line with local laws and regulations
Register for National Tax Number (NTN):
- Visit the Federal Board of Revenue (FBR) or their online portal and apply for an NTN. You will need to provide your personal information and details about your business.
Register with the Sales Tax Department (if applicable):
- If your business 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 business, 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):
- Although not mandatory, you can choose to join your local Chamber of Commerce and Industry. It can provide networking opportunities, access to business resources, and representation in relevant forums.
Open a Bank Account:
- Visit a commercial bank of your choice and open a business bank account. You will need your NTN, CNIC (Computerized National Identity Card), and other relevant documents.
Note: Once NTN is issued,
- Salaried individual needs just to file return against salary tax (deductible at source by employer)
- And for Business individual needs to properly 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 tax obligations and facilitate smooth business operations.
