In Pakistan, the size of a startup company 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 startups.
3. Securities and Exchange Commission of Pakistan (SECP) Regulations: Governs company registration and regulation.
4. Startup Policy 2019: Supports startup growth.
Size Criteria
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 Startups
1. Micro Startup: Less than 10 employees, annual turnover less than PKR 10 million.
2. Small Startup: 10-50 employees, annual turnover less than PKR 50 million.
3. Medium Startup: 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:
3. Pakistan Startup Policy 2019:
4. Federal Board of Revenue (FBR):
