Investors Want to Set Up Business in Pakistan Due To A Multitude Of Perks
Being neighbors with China, Russia, and the UAE puts Pakistan businesses in a prime position to enjoy the trading benefits with these large and dominant economies in Asia. Do you want to set up business in Pakistan? Why and which business entity option would you choose to register your business under? Sole proprietorship? Partnership? Joint venture? Private Limited entity?
Now, each of these entities come with their own advantages of course, and here we will explore some of the benefits that an investor stands to gain by setting up a business in Pakistan, especially a Private Limited Company entity:
A Private Limited Company Has Unlimited Lives
Because a Private Limited Company in Pakistan is considered a separate legal entity than its directors, it is beneficial to set up business in Pakistan because of the “unlimited lives” this type of entity offers. Meaning, a company in Pakistan (if registered under this entity) will not be affected by the death of a director.
Transferring Ownership of the Business is Easy
Private Limited companies in Pakistan can easily have their ownership transferred from one person to another. This entity offers the easiest transfer option compared to other forms of business entities.
The Tax Benefits
Income Tax Law in Pakistan stipulates that directors can receive salaries from their own companies, which will help them reduce the net profit and ultimately, directors of companies in Pakistan will not be subjected to paying taxes.
Double Taxation Agreements
The Pakistan government has concluded double taxation agreements with 47 countries. This means there would be easier remittance of funds to foreign shareholders with a minimum withholding tax.
The Government also offers four special economic zones including Karachi, Risalpur, Sialkot, and Gujranwala. This allows foreign companies the benefit of special infrastructure support, investment facilitation services, and business incentives.
Large Islamic Banking Sector
The Islamic banking sector is huge in Pakistan, thanks to there being no restrictions on repatriation of funds between international Sharia bank accounts.
The Natural Resources
It is a wise decision for an investor to set up business in Pakistan. Why so? It’s because of the country’s variety of natural resources. These include coal, gold, copper ore, oil, uranium, and gas. As of 2012, foreign investors are free to trade directly with these resources.
Affordable Labor and Cost of Living
Compared to a lot of other countries in the Western world, the cost of living in Pakistan is very affordable. This includes food, utilities, rent, wages, and transport, which makes setting up a business here a wise decision. The annual business operating costs of running a company are also comparatively low, with the average monthly skilled wage salary.