Pakistan earned $1 billion in the IT sector in 2019 by providing different information technology (IT)
related services to various countries throughout the world. This is a growth of 29% compared to
$703 million earned in 2018.
Pakistan is an up and coming exporter of IT and call center services to countries all over the world,
playing an important role in bringing in foreign revenue. With the demand for IT services and call
centers increasing every day in Pakistan, awareness for the IT sector and call centers is also on the
rise. It's safe to say that Pakistan is quickly becoming a leading country when it comes to exporting IT
and call center services.
TAX CREDITS FOR CALL CENTER & SOFTWARE HOUSE/IT COMPANIES IN PAKISTAN
The Pakistani government is currently evaluating the IT sector's potential and has been promoting IT
services and call centers in the past by exempting their foreign income. However, in recent reforms,
while withdrawing this exemption, the government of Pakistan has offered the IT sector and call
centers to instead claim 100% tax credit with no requirement of Turnover Tax. There are four major
requisites for claiming this 100% tax credit:
In order to claim your 100% tax credit on IT services in Pakistan, you must first file your monthly
withholding statement under Section 165 of ITO 2001. Withholding tax is then deposited with the
national exchequer. After that, you must file your income tax return with the provincial government,
such as PRA or Sindh Revenue Board.
For more detailed information on how to claim your tax credit, please read our recent article on
Income Tax on IT Services in Pakistan.
CALL CENTER AND SOFTWARE HOUSE/IT COMPANY REGISTRATION IN PAKISTAN
For the purpose of developing an IT business or call center, you need to first establish your business
in Pakistan. There are different ways to go about this, and the business structure you choose will be
based on your personal needs and requirements. For example, you could choose a sole
proprietorship, partnership firm, single member company (SMC), limited liability partnership (LLP),
or private limited company. Each option has its own set of benefits and drawbacks that you'll need
to consider before making a decision.
We always recommend that you consult with a professional lawyer to get the most accurate and up-
to-date information about benefits for each business structure. However, majority of IT businesses
or Call Centers in Pakistan are registered as one of the following:
'Sole Proprietorship', also known as a Proprietor Concern, is when there is only one owner who
manages and controls the business. Sole Proprietorship is often one of the most convenient Business
structures in Pakistan because there is no difference between the business and the owner of the
A 'partnership firm' is established in Lahore under the Partnership Act of 1932, which allows two or
more individuals to join forces for a common goal while sharing any profits or losses that may come
as a result. The distribution of said profits and losses is decided based on predetermined terms set
out by the partners in what is known as a partnership deed. This document provides a blueprint for
the partnership business and outlines how any potential disputes amongst partners will be handled.
In many cases, hand-written drafts are used to establish partnerships, but this often leads to
difficulties down the road.
When starting a business, it's always a good idea to consult with a professional lawyer. They will be
able to understand your specific needs and requirements and draft a partnership deed accordingly.
This will help ensure maximum protection for you in case of any disputes that may arise between
partners in the future.
A Private Limited Company is a business structure that can be chosen when there are 2 or more
directors or shareholders running a business. Up to 50 directors or shareholders can be part of this
type of company. Private Limited Companies cannot trade their shares publicly. This structure is not
just considered the most organized and secure, but also that in case of dispute, directors or
shareholders are only liable to the extent of their shares in the company.
The Pakistan Software Export Board (PSEB) is a department of the Pakistani government that works
to promote the IT industry in Pakistan, both domestically and internationally. PSEB conducts
research and develops IT policies in line with other governmental bodies, and also registers IT
businesses in Pakistan. Company registration with PSEB is compulsory to attain benefits such as tax
exemption from the Income Tax Department in Pakistan.
The Government of Pakistan requires all IT businesses and call centers to register with the Pakistan
Software Export Board (PSEB) in order to document and monitor IT remittances coming into the
country from abroad. This not only helps the Pakistani government keep track of the country's
economy, but also helps them understand potential areas where the IT sector can help promote
economic growth by inviting more foreign investment. Pakistani IT companies are developing
software, mobile games, and applications for smartphones.
In order to register your business with the government of NTN, you will need the following
- A copy of the CNIC of all directors, shareholders, partners, or proprietors
- A copy of the passport of all directors, shareholders, partners (for foreign nationals only)
- An attested copy of the Memorandum and Articles of Association (for SECP registered companies
- An attested copy of Form 29 (for SECP registered companies only)
- An attested copy of the Incorporation certificate (for SECP registered companies only)
- An attested copy of the Partnership deed (for Partnership based firms)
- An attested copy of Firm registration certificate (for registered firms)
- Business Bank Statement of the preceding six months
Please submit the following documents for your business NTN application:
-Passport copy of Directors / Shareholders / Partners (for foreign nationals only)
-Attested copy of Memorandum and Articles of Association (for SECP registered companies only)
-Attested copy of Form 29 (for SECP registered companies only)
-Attested copy of Incorporation certificate (for SECP registered companies only)
-Attested copy of Partnership deed (for Partnership based firms)
-Attested copy of Firm registration certificate (for registered firms)
-Business Bank Statement of the preceding six months
At Burhan & Associates, we specialize in assisting with the registration process for call centres and
software houses/IT companies in Pakistan. We have a deep understanding of the process and can
provide guidance and support every step of the way. If you have any questions or concerns, please
do not hesitate to contact us. We would be more than happy to help you with your registration
Main Boulevard Gulberg, Main Market, Lahore, Punjab 54000 Mr. Ahmed Burhanemail@example.com
Burhan Center, 97-99, Gulistan Market Railway Road, Faislabad, Pakistan Mr. Ahmed Burhanfirstname.lastname@example.org
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