CALL CENTER AND SOFTWARE HOUSE/IT COMPANY REGISTRATION IN PAKISTAN

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 business. 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.