Board Of Investment (BOI)
It is a sole autonomous body who has the right to register the foreign company’s branch office in Pakistan. There are many steps involved in the registration process of branch office in Pakistan.
Difference Between Branch Office and Liaison Office in Pakistan
Branch Liaison Management Information System (BLMIS) is a system that works for foreign firms that wish to do business in Pakistan.
The foreign company shall submit its request to the Board of Investment online through “Branch Office (workplace) /Liaison Management Information System (BLMIS)” for the gap of the Branch Office (Branch office means an office of any foreign company established for the purpose to fulfill obligations made with any Public or Private entity in Pakistan) or Liaison office (Liaison Office means an office of any foreign company established for the promotion of products(s), exploring the possibility of collaboration and export promotion. No commercial activity i.e. activity aimed at making a profit(s) shall be performed by the liaison office of a foreign company)
https://blmis.invest.gov.pk/ is a website that provides you with an online application to aid the opening of branch offices and liaison offices in Pakistan
Procedural Guideline For Opening Branch Office of Foreign Company
Foreign companies suggest that any company or body corporate incorporated outside Pakistan.
Steps
Applicants can apply in branch/Liaison application by following the process. This process includes the following step
- Hire A Right Consultant
- Prepare An Application
- Attest From Pakistan Embassy
- Document Submission
- Payment Proceedings
- Follow-up with concerned authorities
- Security Clearance
- NOC From Board Of Investment
- Company Name Reservation
- Company Incorporation From SECP
- Get An NTN Number from FBR
- Open A Bank Account
- Start Your Business Activities
Documentation Required
Documents required to fill an application are
- Application form for Branch / Liaison Office as prescribed by Board of Investment.
- Copy of registration of foreign company or certificate of incorporation in its own Country duly attested by various Pak Embassy/High Commission/Consulate General.
- Copy of Article of Memorandum and Article of Association documented by various Pak Embassy/High Commission/Consulate General.
- Copy of Resolution/Authority letter of the company to establish Branch workplace in Pakistan.
- Copy of Contract Agreement made by a foreign company with Public or Private Entity in Pakistan.
- Company Profile of the foreign company.
- Fees as prescribed by the Board of Investment.
- Any other document deemed important by the Board of Investment can be requested from the Company.
Payment Of Government Fee
The client has to pay the government fee directly to the government through online payment method. The fee of branch office is $3000 and liaison of $2000.
Processing Time
It takes one week for document preparation and document attestation from embassy also takes 3-4 days usually. After receiving the original document from the client the consultant then submit the document within one or two working days. After submitting the documents it takes around 6-8 weeks till you receive the NOC and further one to two weeks for other proceedings till you operationalize the business.
Grant of Permission
The permission shall be granted for a period maximum up to one year with immediate effect after due processing of the case by the provisions of Investment Policy, 2013.
The Board of Investment shall examine the review application of the company and convey its final decision to the company.
The foreign company shall submit certain documents to the Securities and Exchange Commission of Pakistan (SECP) as required under Companies Act, 2017, within 30 days of the permission issued by the Board of Investment, and acknowledgment certificate of such documents from the Securities and Exchange Commission of Pakistan (SECP).
A certificate about submission of such documents issued by the Securities and Exchange Commission of Pakistan (SECP) shall be submitted to the Board of Investment before application for renewal of permission is submitted.
Permission Of Branch Renewal
The request for renewal shall be accompanied by the following documents:
- Online request from “Branch / Liaison Management Information System (BLMIS)”
- Copy of valid Contract Agreement,
- Copy of latest Audited Accounts,
- Proof of fees paid.
- Proceeds Realization Certificate issued by concerned bank authorities, where the Bank Account of the company is maintained.
Return Of Documents
If there is any incorrect information or discrepancy found in the documents the department will let the consultant know about the issues and give an appropriate time to fix all the discrepancies in the documents.
Change Of Particulars
Whenever any change occur in the documents branch office, the foreigner is bound to inform to the board of investment otherwise it will undergo a penalty.
Change Of Company’s Authorized Representative
The request for amendment of the company’s Authorized Representative shall be received and processed subject to provision of involved Board of Director’s resolution within the matter.
Closure Of Office
The request for closure of the Branch or Liaison Office shall be submitted to the Board of Investment, which shall be accompanied by:
i. Request letter for closure.
ii. Copy of Board Resolution for closure of Workplace in Pakistan
iii. Activity report, takings realization certificate, and copy of audited accounts for least allowable amount.
iv. Copies of selection relating to the closure of workplace relieved in main Urdu and English newspapers, severally.
v. Confirmation from Tax Authorities that each one is finalized, and no quantity of Tax is outstanding
vi. Legal Liability Affidavit.
Opening Of Sub Office Other Than Main Office
One-time fee for each sub-office shall be charged separately, as prescribed by the Board of Investment from time to time.