Tax & Accounting Consultancy · PakistanCompany, AOP or sole proprietorship: the choice changes how you are taxed, what you file and who audits you.
We advise Pakistani business owners on structure, registrations, accounting frameworks and tax exposure, plan clean-ups when records have fallen behind, and help founders who work with or own businesses in the US and UK.
Accounting
At a glance
- Authorities
- Federal Board of Revenue (FBR) · Securities and Exchange Commission of Pakistan (SECP) · Provincial revenue authorities (PRA, SRB, KPRA, BRA)
- Forms & references
- STR-1Income tax returnWealth statement
- Format
- Advisory calls, written summaries or scoped projects
- Common topics
- Structure, sales tax registration, withholding compliance, record readiness
- Cross-border
- Links with US and UK companies and clients
- Legal work
- Referred to an advocate or corporate lawyer where needed
Overview
What it is, and why it matters.
Consultancy covers the decisions behind your accounts and tax returns rather than the returns themselves. For Pakistani businesses, that often starts with structure: a sole proprietorship, an association of persons (AOP) and a private limited company are taxed differently, carry different record-keeping and audit obligations, and look different to banks and foreign clients.
It also covers readiness. Which federal and provincial sales tax registrations apply to you? Is withholding tax being deducted and deposited correctly? Will your records stand up to an FBR audit or an auditor’s review? We look at what you have and give you a practical, ordered list of what to fix.
Many Pakistani founders work across borders: exporting IT services to US and UK clients, forming a US LLC or UK company alongside a Pakistani business, or paying for foreign software and services. We explain the Pakistani side, outline the US or UK side, and tell you when a specialist in the other country or a lawyer should be involved.
Who needs it
Who typically needs it.
- 01
Growing sole proprietors and AOPs
Businesses considering incorporation as turnover, staff and client expectations grow.
- 02
IT exporters and freelancers
Developers and agencies with foreign clients who want to understand how export income is taxed and documented in Pakistan.
- 03
Founders with a US LLC or UK company
Pakistani residents who own a foreign company and need to understand how it interacts with their own Pakistani tax position.
- 04
Businesses facing FBR notices
Owners who have received notices on returns, withholding or sales tax and need to understand their records before replying.
- 05
Foreign companies entering Pakistan
US and UK businesses setting up a Pakistani subsidiary, branch or team and planning accounting and tax from the start.
When you need it
The moments that usually trigger it.
- You’re deciding whether to incorporate your business with SECP.
- You’re starting to invoice US or UK clients and want to set it up correctly.
- You’ve formed, or plan to form, a US LLC or UK company while living in Pakistan.
- You’ve received an FBR notice and your records are incomplete.
- Your business may need federal or provincial sales tax registration.
- Your records have fallen behind and you need a plan before the year end.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Structure comparisons between sole proprietorship, AOP and private limited company, covering tax, audit and compliance differences.
- 02
Registration readiness for NTN, federal sales tax and provincial sales tax on services.
- 03
Withholding tax compliance reviews: what you should be deducting, depositing and reporting.
- 04
Record-keeping reviews against Companies Act and FBR requirements, with a practical fix list.
- 05
Clean-up planning for missed returns, withholding statements and unreconciled accounts.
- 06
Cross-border questions, such as export income, foreign companies owned by Pakistani residents, and US or UK filings that interact with Pakistani ones, at a general level with specialist referral.
- 07
Accounting framework and reporting advice for companies changing size category.
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationDiscuss your situation
You explain your business and the decision or problem in front of you. We confirm whether it is an accounting or tax matter we can advise on, or needs a lawyer.
Review documents
We review your registrations, recent returns, accounts, bank statements and any notices.
Options and risks
We set out the options, their tax and compliance consequences, and the filings and registrations each one requires.
Written advice
You receive a written summary of our recommendation and the assumptions behind it.
Implementation
If you go ahead, we can handle registrations, bookkeeping and filings through our other services, or work with your existing advisers.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Business details
- NTN, and STRN if registered
- SECP registration documents, partnership deed or proprietorship details
- Recent income tax and sales tax returns
Financial information
- Latest accounts or management reports
- Bank statements
- Withholding certificates and CPRs
Cross-border details
- Details of any foreign company you own or control
- Foreign client contracts and how you invoice them
- Any correspondence from the IRS, HMRC or other foreign authorities
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Staying a sole proprietor when clients expect a company
Foreign clients and larger local customers often prefer or require a registered company. Switching later means new registrations, bank accounts and contracts.
- Mistake 02
Forgetting provincial sales tax on services
Most services are taxed by the provinces, each through its own revenue authority and rules, while Islamabad Capital Territory services fall under federal law. A business registered only with the FBR may still owe provincial sales tax.
- Mistake 03
Assuming a US LLC keeps income outside Pakistan’s tax net
Pakistani residents are generally taxed on worldwide income. Profits from a US LLC you own may be taxable in Pakistan even when no US tax is due, and the LLC and its bank balances may need to appear in your wealth statement.
- Mistake 04
Letting withholding lapses pile up
Tax not deducted or deposited on rent, services and contracts can lead to the expense being disallowed, with default surcharge on top. The longer it runs, the harder it is to put right, so withholding is usually the first thing a clean-up plan fixes.
Worth knowing
The limits, stated upfront.
We provide tax and accounting advice, not legal advice. Incorporation documents, shareholder agreements and disputes may need an advocate or corporate lawyer.
US and UK tax is covered at a general level; confirm the position with a qualified adviser in that country before acting.
Who may represent you before tax authorities, tribunals or courts is governed by law, and we will tell you if your matter needs a different representative.
Finance Acts change rates and rules each year, and some changes arrive mid-year through SROs; our advice reflects the position when it is given.
Questions
Tax & Accounting Consultancy: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionShould I register a private limited company or stay a sole proprietor?
It depends on your size, your clients and your plans. A company gives limited liability and credibility with foreign clients, but brings Companies Act record-keeping, an audit in most cases and more filings. We compare the costs and the tax on your own figures.
How is income from US or UK clients taxed in Pakistan?
It depends on whether it qualifies as export of services, how the money is received and your legal form. Export proceeds received through banks are often subject to tax deducted at source, which may be final or adjustable depending on the regime, and rates change with each Finance Act. We confirm the treatment for your income and tax year before advising.
I live in Pakistan and own a US LLC. What should I consider?
On the US side, a foreign-owned single-member LLC generally files Form 5472 with a pro forma Form 1120 every year. On the Pakistani side, residents are generally taxed on worldwide income and must declare foreign assets, so the LLC’s profits and bank balances need to be reflected in your return and wealth statement.
Do I need to register for provincial sales tax?
If you provide taxable services in a province, you may need to register with its revenue authority, such as the Punjab Revenue Authority or the Sindh Revenue Board. Sales tax on goods is federal and administered by the FBR. We review your activities to see which registrations apply.
Can you help us respond to an FBR notice?
We can review the notice against your records and prepare the information and reconciliations it asks for. Where formal representation or litigation is involved, you may need an authorised representative or an advocate.
We are a foreign company planning to hire in Pakistan. Where do we start?
Usually with the choice between a subsidiary, a branch office and an employer of record arrangement, each with different registrations, tax and accounting duties. We set out the accounting and tax consequences; the legal set-up should be confirmed by a corporate lawyer.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about tax & Accounting Consultancy.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com