In Pakistan, a small business is defined as per the following laws and regulations:
Legal Framework
1. Pakistan Business Registration Act 2017: Regulates business registration and licensing.
2. Income Tax Ordinance 2001: Provides tax incentives for small businesses.
3. Securities and Exchange Commission of Pakistan (SECP) Regulations: Governs company registration and regulation.
4. Small and Medium Enterprises (SMEs) Policy 2014: Supports SMEs and startup growth.
Definition of Small Business
1. Number of Employees: Less than 100 employees.
2. Annual Turnover: Less than PKR 500 million (approximately USD 3.125 million).
3. Net Worth: Less than PKR 250 million (approximately USD 1.5625 million).
4. Business Age: Less than 7 years old.
Types of Small Businesses
1. Micro Enterprise: Less than 10 employees, annual turnover less than PKR 10 million.
2. Small Enterprise: 10-50 employees, annual turnover less than PKR 50 million.
3. Medium Enterprise: 50-100 employees, annual turnover less than PKR 100 million.
Benefits and Incentives
1. Tax Exemptions: Up to 5 years.
2. Reduced Tax Rates: 10% or 12.5%.
3. Easy Registration and Licensing: Streamlined processes.
4. Access to Funding: Specialized loans and grants.
5. Support from Government Agencies: Mentorship, training, and advisory services.
Registration Process
1. Register with SECP (for companies).
2. Obtain NTN (National Tax Number) and STRN (Sales Tax Registration Number).
3. Obtain necessary licenses and permits.
4. Comply with tax laws and regulations.
Resources
1. Pakistan Business Registration Act 2017:
2. SECP: (link unavailable)
3. Pakistan SMEs Policy 2014:
4. Federal Board of Revenue (FBR):
