There are some kinds of business registration with FBR in Pakistan, common among them are:
- Individual or Sole Proprietorship
- Association of Persons (AOP), Partnership or Firm
- Limited Liability Partnership (LLP)
- Company
- Individual or Sole Proprietorship
Individual or Sole Proprietorship is a same thing. One can register his/her business with FBR as individual category if the owner of such business is one person.
- Association of Persons (AOP), Partnership or Firm
If more than one person do a business jointly they will be register with FBR as Association of Persons and this formation of business is also called partnership or Firm. Owners of the business are called partners. All the partners of this firm shall allotted separate National Tax Number (NTN) including a distinct NTN for the firm. For example two persons start a business there will be three NTNs allotted to this business two NTNs for two partners and third NTN for Firm (business) and so on.
- Limited Liability Partnership (LLP)
This formation of business is some newly introduced concept. And almost like as Association of Persons (AOP). It formed under the rules and regulations of Securities and Exchange Commission of Pakistan (SECP). Allotment of NTNs shall be made in same mechanism like as AOP.
- Company
There are many kinds of companies like Single Member Company (SMC), Private Limited (pvt) Ltd., Limited by Guarantee, NGOs/NPOs etc. Owners of the company are called Directors. Allotment of NTNs shall be made in same mechanism like as AOP.
- We tried to explain the above concepts in simplest way for understanding of a common man. Benefits of each category shall be discussed in next time. Contact blogger ([email protected])