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You may also want to review details pertaining to:
- FAQs: Registration of a non-profit (NPO / NGO) under Companies Ordinance, 1984
- Laws related to NGO’s/NPO’s in Pakistan
Please contact Mumtaz & Associates for advise on which type of NGO / NPO best suites your needs.
Below are Frequently Asked Questions (FAQs) regarding registration of society under Society Registration Act, 1860:
Q. What is the purpose for which a society can be formed in Pakistan?A. According to Societies Registration Act, 1860 the society may be registered for the grant of charitable assistance, for the promotion of science, literature, the fine arts, for instruction, the diffusion of useful knowledge, diffusion of political education the foundation or maintenance of libraries or reading rooms, public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.
Q. Who all can form a society or charitable organization in Pakistan?
A. A society can be formed by “Any seven or more persons associated for any literary, scientific or charitable purpose, or for any such purpose as described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with registrar of Joint Stock Companies form themselves into a society under this Act.
Q. How can a society be dissolved?
A. Society can be dissolved by its members, by the Registrar, by the Government or by Court.
Q. Who is the signing authority of a registered society?
A. All the documents of a registered society to be filed with the Registrar should be signed by the President/Chairman or the Secretary or by any person specifically authorized in this behalf by the governing body.
Q. What is the disqualification for being a member of the society?
A. A person is disqualified for being chosen as or being a member of the society, If a person is an undercharged insolvent, is convicted of any offence in connection with the formation, promotion, management or conduct of the affairs of a society or a body corporate, or of any offence involving moral turpitude.
Q. What is the quorum required for a meeting of a society?
A. Quorum’ implies the minimum number of members who must be present in the meeting to make the proceedings of the meeting valid. The bye-laws of the organization specify the quorum required for different meetings. If the required quorum is not present then the meeting is generally adjourned as provided in the bye laws of the society.
Q. What are the things to be kept in mind while proposing a name of the society?
A. While proposing a name for the society things to be kept in mind are the proposed name should not imply any connection with Government of Islamic Republic of Pakistan or any connection with any government office and should not be identical to name of any other registered society and name of the society should not suggest obscenity or be against decency and decorum.
Q. Can a registered society make amendments in rules & regulations and memorandum of the society registered under the Societies Registration Act, 1860?
A. The registered society can make amendment in its rules & regulation as well as in memorandum of the society by submitting an application with the signature of the General Secretary or President. The amendment shall be approved by the Registrar of Society as per the bye-laws.
Q. Whether foreigners can be appointed as Executive Committee members?
A. There is no bar according to law, however, foreign nationals are generally discouraged from being appointed as member of executive committee under Societies Registration Act, 1860.
Q. What are the books of accounts to maintain by a society?
A. Generally the books of accounts to be maintained by the society are cash books/bank books giving the daily receipts, voucher files ledgers and receipt books.
Q. Is NGO/NPO or charitable organization registered under Societies Registration Act, 1860 in Pakistan a tax-exempt entity? If not, how do I become tax exempt?
A. A charitable organization or society registered under Societies Registration Act, 1860 is not automatically exempt from income tax or other taxes. To become exempt the organization must meet certain requirements and apply to Commissioner Income Tax for exemption. Although tax exemption is considered an automatic benefit of registration by many NGOs, it must be noted that the only type of tax exemption for NGOs/NPOs is the exemption granted by the Federal Board of Revenue on a case by case basis. This is not part of the registration process and must be applied for separately.
Mumtaz & Associates provide services to register non-governmental and non-profit organizations in the field of Health Care and Medical fields, Education, Eye Health and capacity building, Humanitarian Development, Aid Centre, Advocacy and Awareness, Child Labour, Child Protection, Citizenship Education, Drinking Water, Drug Abuse, Free Hospital, Religious Education, Technical Education etc.
Mumtaz & Associates can advice you on registration of a NGO / NPO and other related matters to individuals, firms, companies both local and foreign. You can contact Mumtaz & Associates for detailed consultancy and advice.
Non-Profit Company Registration in Pakistan
You may also want to review details pertaining to:
- FAQs: Registration of a non-profit (NPO / NGO) under Societies Act, 1860
- Laws related to NGO’s/NPO’s in Pakistan
Please contact Mumtaz & Associates for advise on which type of NGO / NPO best suites your needs.
Below are Frequently Asked Questions (FAQs) on registration of non-profit company in Pakistan which is another option than registering a non-profit under Societies Act:
Q. Is a non-profit company/organization need to obtain licence also?
A. Yes. Any such company/organization is required to obtain licence under section 42 of the Companies Ordinance, 1984 from the Securities & Exchange Commission of Pakistan prior to its registration as a company limited by guarantee.
Q. For how many years licence is issued?
A. The licence is issued for a period of five years and is renewable for further term of five years each.
Q. Minimum how many members can form an association not for profit under Companies Ordinance, 1984?
A. Minimum three members can form an association/company not for profit, the association be registered as a company with limited liability, without the addition of the words “Limited”, “(Private) Limited” or “(Guarantee) Limited”.
Q. Can non-profit company incorporated under Companies Ordinance, 1984 have multiple objects?
A. Yes, non-profit company is allowed to have multiple objects.
Q. In case of closing the non-profit company where will assets or property of the said company go?
A. In case of winding up or dissolution of the Company, any surplus, assets or property, after the satisfaction of all debts and liabilities be given or transferred to some other company established under section 42 of the Companies Ordinance, 1984, having similar or identical objects .
Q. Are foreigners are allowed to form non-profit association/company under section 42 of the Companies Ordinance, 1984?
A. There is no bar on foreigners becoming trustees of a non-profit company.
Q. Can licence granted under section 42 of the Companies Ordinance, 1984 be revoked?
A. The licence granted under section 42 of the Companies Ordinance, 1984 can be revoked by the Securities & Exchange Commission of Pakistan and upon revocation, the Registrar shall enter the word “Limited” or “Private Limited” at the end of the name of the company and the company shall cease to enjoy the exemption granted under section 42 of the Companies Ordinance, 1984. Before licence is revoked Securities & Exchange Commission of Pakistan shall give notice in writing of its intention and an opportunity be given of being heard in opposition to revocation.
Q. Does a non-profit company wanting to get registration under section 42 of the Companies Ordinance, 1984 requires to have minimum paid up capital as required by other companies of registered under Companies Ordinance, 1984?
A. No. A non-profit company registered under section 42 shall not be required to have minimum authorized paid up capital.
Q. Can a non-profit company registered under section 42 of the Companies Laws of Pakistan have activities outside Pakistan?
A. Companies Ordinance, 1984 do not prohibit activities outside Pakistan.
Q. Can one person be the sole director and officer of a nonprofit company in Pakistan?
A. No. The Companies Ordinance, 1984 under which nonprofit companies are incorporated requires a nonprofit company to have at least three trustees.
Q. Can a nonprofit company pay a salary to its directors, officers and employees?
A. A nonprofit company may pay reasonable compensation for services rendered to the employees of the company but the trustees cannot draw any salary or remuneration.
Q. Is a nonprofit company a tax-exempt entity? If not, how do I become tax exempt?
A. Charities are potentially exempt from tax on most forms of income provided that the funds are applied solely in furtherance of the charity’s objects. A nonprofit company is not automatically exempt from income tax or other taxes. To become exempt the association must meet certain requirements and apply to Commissioner Income Tax for exemption.
Mumtaz & Associates have successfully dealt with incorporation of various nonprofit companies under section 42 of the Company Ordinance, 1984 including registration of nonprofit company for education; nonprofit company for sports; nonprofit company for charity activities; nonprofit company for arts, sciences and literature; nonprofit company for culture and heritage activities; nonprofit company for health services activities; nonprofit company for social infrastructure and human resource development activities; nonprofit company for rural support programme activities; nonprofit company for religious activities; nonprofit company for professional Institutions activities; and nonprofit company for special education activities.
Mumtaz & Associates can advice you on registration of a NGO / NPO and other related matters to individuals, firms, companies both local and foreign. You can contact Mumtaz & Associates for detailed consultancy and advice.
Company Registration in Pakistan
Frequently Asked Questions (FAQs) about Company Law in Pakistan.
Q. What is meant by Private Company?
A. According to Companies Ordinance, 1984 private company means a company, which, by its articles, restricts the right to transfer its shares, if any. Limits the number of its members to fifty not including persons who are in the employment of the company and prohibits any invitation to the public to subscribe for the shares, if any, or debentures of the company.
Q. Which law is applicable for incorporation of companies?
A. Relevant laws are Companies Ordinance, 1984, Companies (General Provisions and Forms) Rules, 1985, Single Member Companies Rules, 2003 and Code of Corporate Governance for limited companies.
Q. How many types of Companies are there?
A. Companies Ordinance, 1984 mentions three types of companies i.e. company limited by shares, company limited by guarantee and unlimited company. Companies which may be registered in the mentioned categories in Pakistan are a single member company, a private limited company, a public limited company; which may be listed or unlisted and a foreign company.
Q. What is Minimum number of members for forming a company?
A. A public unlisted company must have at least three members/directors whereas the company listed at stock exchange must have at least seven members/directors. A private company may have only two members/directors and a single member company can be formed with one chief executive and a company secretary.
Q. According to Company Law what is Special Resolution?
A. According to Companies Ordinance, 1984 Special Resolution means a resolution which has been passed by a majority of not less than three-fourths of such members entitled to vote as are present in person or by proxy at a general meeting of which not less than twenty-one days notice specifying the intention to propose the resolution as a special resolution has been duly given. Provided that, if all the members entitled to attend and vote at any such meeting so agree, a resolution may be proposed and passed as a special resolution at a meeting of which less than twenty-one days notice has been given.
Q .What is Memorandum of Association of a company?
A. Memorandum of Association primarily specifies the framework of company’s objectives and capital boundaries. It is the constitution of a company, and is its main document. A company cannot incorporate without a memorandum of association. It provides information about a company, its financial structure, and its functions. Memorandum of Association governs a company’s business operations by highlighting clauses of what a company can do and what it cannot. It includes Name clause, Registered Office Clause, Object Clause, Liabilities Clause, and Authorized Capital Clause. The object clauses cannot be changed or enlarged without the approval of Securities and Exchange Commission of Pakistan.
Q. What is Articles of Association?
A. Articles of Association highlight internal regulations for the management of the company. It states the roles and functions of the company’s management. Articles of Association govern company management’s operations they transcribes rules for conducting its daily business in accordance with applicable laws e.g. transfer and transmission of shares, mode of alteration in capital, holding of meetings, voting, powers and duties of directors and chief executive, distribution of dividends, capitalization of profits and reserves, preparation of accounts, winding up, etc.
Q .Can Articles of Association be altered after incorporation?
A. Yes, a company can alter its articles of association anytime after passing of a special resolution by the shareholders.
Q. Can I convert my sole proprietor business into a company?
A. Yes, sole proprietor business can be converted into sole proprietor company or a private limited company.
Q. To start a small business which forms should I adopt?
A. You can adopt any one option that is; by becoming a sole proprietor, by forming a single member company, by forming a partnership and you can also form a private limited company.
Q. Can a foreigner be a director in a Pakistani Company?
A. Yes, foreigner can be a director of a Pakistani Company after compliance with the Foreign Exchange Regulations.
Q. How does a director resign from a Private Limited Company?
A. A director can resign anytime subject to the clearance of any liability against him.
Q. What is the minimum paid-up capital of a Private Limited Company?
A. The minimum paid up capital at the time of incorporation of a private limited company has to be Pakistani Rupees 1, 00,000. There is no upper limit on having the authorized capital and the paid up capital. Capital can be increased any time.
Q. What is the difference between authorized capital and paid up capital?
A. The authorized capital is the limit up to which the directors are competent to issue shares. Paid up and subscribe capital means the capital actually issued in favor of the directors/shareholders within the limits of authorized capital.
Q. In future I am thinking to increase paid-up capital of my company is it possible?
A Yes, you can increase but subject to the compliance of the requirement of the Companies Ordinance, 1984.
Q. What are the requirements for a foreign company opening a branch in Pakistan?
A. Foreign company can establish a principal place of business in Pakistan after complying with the legal requirements laid down under section 452 to 460 of the Companies Ordinance, 1984.
Q. Can I change my company name after incorporation?
A. Yes, a company name can be changed any time after the incorporation, by passing a special resolution by the members and certificate of change of name is issued by the Securities and Exchange Commission of Pakistan in whose jurisdiction the registered office of the company is situated.
Q. I do not live in Pakistan Can I still set up a new company?
A. Yes, you can set up a company. If a Chief Executive/director resides outside Pakistan for more than three months then he can appoint an alternative director in his place.
Q. Can I choose any name I want for my new company?
A. You can choose any name but subject to the approval of the Securities & Exchange Commission of Pakistan.
Q. What are non-profit companies?
A. Non-profit companies are generally formed with the objective of promoting art, science, social services, etc. and the members are prohibited from receiving any dividend. Such companies are exempted from the requirements of using the word “limited” at the end of the name and are authorized to operate under a license issued by the regulator.
Q. Are there any restrictions on foreigners who wish to do business in Pakistan?
A. There is no restriction on foreigners to do business in Pakistan.
Q. Do foreigners need a Pakistani national to form a company?
A. Foreigner can form a company with 100% equity subject to the approval of Board of Investment, Government of Pakistan otherwise they must have someone from Pakistan to be a director.
Q. Does a company needs separate National Tax Number?
A. Yes, every company is assigned a national tax number without it a company cannot file its return. Documents which company requires for national tax number are photocopies of computer national identity card of all the directors or passport (in case of foreigner), incorporation certificate and application for national tax number by individual director in case they do not have national tax number.
Q. What are taxation rates for companies in the Pakistan?
A. The income tax payable by the companies in Pakistan is approximately 35% of the net profit of the company.
Q. Is it necessary to form a company or a partnership firm to start a business in Pakistan?
A. No, it is not necessary to form a company or a partnership firm to start a business in Pakistan.
Q. Can anyone be a Director in a company?
A. Yes anyone can be a company director provided he holds Computer National Identity Card and he or she is not debarred from any competent court of law to become a director.
Q. What does Limited Liability mean?
A. Limited liability means, that if a company is put into liquidation, the people who own the company will only be required to pay what they have already paid or agreed to pay towards settling its debts. Limited liability gives the owners of the company protection if the company fails. Liability of directors/members is limited to the extent of shares held by them in the company.
Q. What if I no longer need my company in Pakistan?
A. If you decide that you do not need a company that you have set up, you should consider putting it into voluntary liquidation if the company is solvent and is in a position to pay its liabilities within twelve months from the date of winding up, if the company cannot afford this and is insolvent then you may apply for its compulsory liquidation through court or to apply for it to be “struck off the register” if the company has no assets and liabilities.
Q. What are modes of Winding up a Company in Pakistan?
A. According to Companies Ordinance, 1984 modes of winding up of a company are by the Court, voluntary winding up or winding up subject to the supervision of Court and creditors winding-up.
Q. What is meant by Registered Office?
A Registered office is the official address of your company where the correspondence can be exchanged between the company and his clients.
Q. Can I change my registered office address from Karachi to Lahore?
A. A company can change the place of its registered office from province to province and from place to place in the same province.
When a company intends to shift its registered office from one province to another it must pass a special resolution, obtain confirmation of the change from the Securities and Exchange Commission of Pakistan, file a certified copy of authority’s order together with the altered memorandum with the registrar of both the provinces, notice of new location shall also be given to the registrar and every copy of memorandum and articles of association shall be amended accordingly.
The office of a company may be removed from one place to another within the same province by a special resolution and a notice to the registrar.
Q. What is meaning by unregistered company?
A. Unregistered company means a company, which is not incorporated under the Companies Ordinance, 1984.
Q. Can a Private Limited Company be converted into Public Limited Company?
A. Yes, a private company may convert its status into public limited company by altering its Articles of Association.
Q. Can a Public Limited Company be converted into Private Limited Company?
A. Yes a public limited company can be converted into private limited company subject to the approval of the Securities and Exchange Commission of Pakistan.
Q. Can I convert my Private Limited Company into Single Member Company?
A. Yes, a private company can be converted into a single member company by passing a special resolution for change of its status and make necessary alteration in its articles of association and obtain approval of the Securities and Exchange Commission of Pakistan.
Q. Can Single Member Company be converted into Private Limited Company?
A. Yes, single member company can be converted into private limited company.
Q. Can minor be a director in Private Limited Company?
A. No, minor cannot become a director in private or public limited company.
Q. Can director of a company hold government post?
A. No, director cannot hold any office of profit.
Q. What are the requirements after establishment of place of business by foreign companies in Islamic Republic of Pakistan?
A. As per Companies Ordinance, 1984 Foreign Company incorporated outside Pakistan, is required to file the following documents to the registrar securities and exchange commission of Pakistan concerned within 30 days from the establishment of its place of business in Pakistan;
A certified copy of the charter, statute or Memorandum and Articles of the company accompanied by Form 38. The certification is to be given by:- (a) the public officer in the country where the company is incorporated to whose custody the original is committed or (b) a notary public of the country where the company is incorporated; or (c) an affidavit of a responsible officer of the company in the country where the company is incorporated. The signature or seal of the person so certifying shall be authenticated by a Pakistani diplomatic consular or consulate officer. If the document is not in English, duly certified translation in English or Urdu language is provided
- Address of registered office or principal office of the company, on Form 39;
- Particulars of directors, Chief Executive and secretary (if any) of the company, on Form 40;
- Particulars of principal officer of the company in Pakistan, on Form 41;
- Particulars of person(s) resident in Pakistan authorized to accept service on behalf of the foreign company, on Form 42 along with the certified copy of the appointment order, authority letter of board of directors’ resolution and consent of the principle officer;
- Address of principal place of business in Pakistan of the foreign company, on Form 43.
- Permission letter from the Board of Investment with a specific validity period for opening and maintaining of a branch/liaison office by a foreign company.
- Any change or alteration in particulars stated in the documents and returns filed at the time of registration is required to be filed on form 44 with the registrar concerned within 30 days of such change or alteration. Foreign company is required to file annually with the registrar concerned annual accounts in respect of its operations within Pakistan as well as its global accounts together with the list of Pakistani members and debenture holders and of places of business of the company in Pakistan within the prescribed period. Foreign company is required to submit the renewal/extension of the permission to open/maintain a branch/liaison office from the Board of Investment on the expiry of the validity period of the permission, originally granted. Foreign company is required to give notice on form 46 to the registrar concerned at least 30 days before it intends to cease to have a place of business in Pakistan and to publish a notice of such intention at least in two daily newspapers circulating in the Province or Provinces in which such place or places of business are situated.
Q. What are Additional Directors?
A. Additional directors are those directors who are not required to acquire a share qualification of a director, as they are the nominees of the financial institution who extended the credit facilities to the companies.
Q. Can a body corporate be appointed as a director of a company?
A. No. A body corporate, association or firm cannot be appointed as a director of a company, and only an individual can be appointed as a director of a company as nominee.
Q. How Chief Executive is appointed in a company?
A. All companies are required to appoint a Chief Executive Officer except for a company managed by a managing agent. The first Chief Executive Officer is appointed by the directors of the company at the date of commencement of business or within 15 days from the date of incorporation, whichever is earlier and thereafter within 14 days of the date of election of directors.
Q. What happens if accounts and annual returns of a company not filed in time?
A. Failure to deliver documents on time is an offence under the Companies Ordinance, 1984. On this failure, directors could be prosecuted and penalized.
Q. Can share holders in a Private Limited Company removes a director?
A. Yes, shares holders can remove a director by passing a resolution in a general meeting.
Q. Are shares in a company are transferable?
A. Shares in a company are freely transferable, subject to certain conditions, such that no shareholder is permanently or necessarily wedded to a company. When a member transfers his shares to another person, the transferee steps into the shoes of the transferor and acquires all the rights of the transferor in respect of those shares.
Q. Can a company delegate his powers to any person?
A. Yes. A company may by writing under its common seal, empower any person either generally or in respect of any specified matters as its attorney, to execute deeds on its behalf in any place either in or outside Pakistan and every deeds signed by such attorney on behalf of company and under his seal, where sealing is required shall bind the company and have the same effect as if it were under its common seal.
Disclaimer: The information available above is not intended to be comprehensive, and many details which may be relevant to particular circumstances have been omitted. Accordingly, it should not be regarded as being complete source of company law information, and web users are advised to seek independent professional advice before acting on anything contained herein. Mumtaz & Associates will not take any kind of responsibility for the consequences of errors or omissions.
Foreign Company Registration in Pakistan
Frequently Asked Questions (FAQs) about Foreign Company Law in Pakistan.
Q. What is meant by Foreign Company?
A. Foreign Company is a company registered outside Pakistan, under a foreign law other than Pakistani law and establishes its place of business in Pakistan.
Q. Is registration of foreign company is mandatory with Securities & Exchange Commission of Pakistan?
A. Yes, registration of a foreign company with Securities & Exchange Commission of Pakistan is mandatory.
Q. Is a foreign company required to obtain any other permission from any other organization for opening and maintaining of its branch/liaison office in Pakistan?
A. A foreign company desirous of setting up a branch or liaison office is required to obtain permission from the Board ofInvestment, Government of Pakistan.
Q. For how long Board of Investment grants permission to open a branch/liaison office of foreign company in Islamic Republic of Pakistan?
A. The permission for opening of branch/liaison office is granted by the Board of Investment for an initial period of three to five years. Copy of such permission letter is required to be furnished with the documents meant for registration of a foreign company.
Q. After expiry does branch/liaison need permission again from Board of Investment?
A. Yes, after expiry renewal/extension of the permission to open/maintain a branch/liaison office is also required to be obtained from the Board of Investment on the expiry of the validity period of the permission originally granted. Whenever such renewal/extension is granted, a copy must be furnished to the Registrar SECP concerned. Further extension is granted after reviewing the performance of the entity during the initial period.
Q. Can a foreign company adopt any name it likes or if there are any restrictions?
A. Foreign Company can establish a principal place of business in Pakistan in the name of the company registered in the country of origin.
Q. Memorandum and Articles of Association of a foreign company, is in language other than English will Securities & Exchange Commission of Pakistan will accept them?
A. According to Rule 23 of Companies (General Provisions and Forms) Rules, 1985, if the document constituting charter, statute or memorandum and articles of association is not in English or Urdu, duly certified translation in English or Urdu language is required to be provided. Where any such translation is made outside Pakistan it shall be authenticated by the signature and seal of the public officer or Notary Public in the country where the company is incorporated, provided that signature or seal of the person so certifying shall be authenticated by a Pakistan diplomatic consular or consulate officer.
Q. Within how many days foreign company is required to deliver requisite documents to the Registrar Securities & Exchange Commission of Pakistan?
A. Every foreign company which establishes a place of business in Pakistan has to deliver the requisite documents to the registrar concerned within thirty days of establishment of a place of business in Pakistan.
Q. What type of certification is required for the documents constituting or defining the constitution of a foreign company?
A. As per Rule 22 of Companies (General Provisions and Forms) Rules, 1985 a copy of any charter, statute, memorandum, articles or other instrument, constituting or defining the constitution of a foreign company is required to be duly certified by:-
• the public officer in the country where the company is incorporated to whose custody the original is committed; or
• a Notary Public of the country where the company is incorporated; or
• an affidavit of a responsible officer of the company in the country where the company is incorporated.
The signature and seal of the official referred above or the certificate of the Notary Public referred above shall be authenticated by a Pakistani diplomatic consular or consulate officer.
Q. Whether a foreign company is required to file any document to the registrar concerned on change or alteration therein?
A. Yes, foreign company is required to notify registrar on any change or alteration of the documents.
Q. What is meant by Global Accounts?
A. Global accounts are the accounts which a foreign company files with the authorities in country of origin. If a foreign company is not required to file the Accounts in country of origin, it shall prepare Global Accounts and get the same audited for purpose of filing of such accounts under the Companies Ordinance, 1984 like a public company.
Q. Are there any statutory obligations for the foreign companies?
A. According to Companies Ordinance, 1984 a foreign company is required to comply with the statutory obligations i.e.
To maintain at its principal place of business in Pakistan a register of Pakistani members and debenture holders, directors and officers, which shall be open to inspection.
In every prospectus inviting subscriptions for its shares or debentures in Pakistan, state the country in which the company is incorporated.
Conspicuously exhibit on the outside of every place where it carries on business in Pakistan the name of the company and the country in which the company is incorporated in letters easily legible in English or Urdu characters and also, if any place where it carries on business is beyond the local limits of the ordinary civil jurisdiction of a High Court, in the characters of one of the vernacular language used in that place. Cause the name of the company and of the country in which the company is incorporated mentioned in legible English or Urdu characters in all bill-heads and letter papers, and in all notices, advertisements, documents and other official publication of the company.
If the liability of the members of the company is limited, cause notice of that fact to be stated in legible English or Urdu characters in every prospectus inviting subscription for its shares, all letter papers, bill heads, notices, advertisements, and other official publications of the company in Pakistan, and to be exhibited on the outside of every place where it carries on business in Pakistan.
Q. Is there any exclusion to foreign companies to deliver accounts?
A. No there is no exclusion, all foreign companies must deliver accounts in Pakistan, and accounts would be prepared and adjusted like a public company.
Q. Are provisions of Companies Ordinance 1984 for registration of mortgage and charges are also applicable to foreign companies?
A. Yes, all the provisions of Companies Ordinance, 1984, as applicable to other companies, relating to the registration of mortgage and charges are also applicable to a foreign company.
Q. Does books of account to be kept by a foreign company?
A. According to section 230 of the Companies Ordinance, 1984 every company shall keep at its registered office proper books of account, the provisions of the said section also apply to the foreign companies.
Q. Do a foreign company need to intimate registrar before closure of its business in Pakistan?
A. Any foreign company at least thirty days before it intends to cease to have any place of business in Pakistan give a notice of intention to the concerned registrar and publish a notice of such intention at least in two daily newspapers circulating in the Province or Provinces in which such place or places of business are situate. As from the date of intention to cease to have any place of business in Pakistan stated in the notice, unless the said date is by a similar notice altered, the obligation of the company to deliver any document to the registrar shall cease, provided it has no other place of business in Pakistan.
Q. If a foreign company having an established place of business in Pakistan goes into liquidation in the country of origin then what procedure is to be adopted in Pakistan?
A. If a foreign company having an established place of business in Pakistan goes into liquidation in the country of itsincorporation then it shall within thirty days give notice thereof to the registrar, and simultaneously publish a notice at least in two daily newspapers circulating in the Province or Provinces in which its place or places of business are situated and furnish to the registrar within thirty days of the conclusion of the liquidation proceedings all returns relating to the liquidation and the liquidation account in respect of such portion of the company’s affairs as relates to its business in Pakistan. Publish a statement on every invoice, order, bill-head, letter paper, notice of other publication in Pakistan that the company is being wound up in the country of its incorporation. Where a company has been dissolved, ceased then no person shall after the date of such dissolution or cessation, carry on, or purport to carry on , any business in Pakistan in the name or on behalf of such company.
Q. If a foreign company in Pakistan fails to comply with provisions of Companies Ordinance, 1984 is there any penalty?
A. If any foreign company fails to comply with any of the provisions of the Companies Ordinance, 1984 then, the company and every officer or agent of the company who knowingly or willfully authorizes or permits the default, shall be liable to fine.
Q. Are foreign companies are required to be registered with tax authorities in Pakistan?
A. Yes, Liaison/Branch office is required to be registered with the Tax Authorities in Pakistan.
Please contact Mumtaz & Associates law firm for further details & professional business & legal consulting.
Mumtaz & Associates provides services in Company Incorporation in Pakistan, Establishment of Branch/Liaison office in Pakistan, Drafting Contracts in Pakistan, Buy-Sell Agreements in Pakistan, Shareholder Agreements in Pakistan, Corporate and Shareholders Disputes in Pakistan, Corporate Restructuring and Reconstruction in Pakistan, Company Negligence in Pakistan, Company Dissolution or Liquidation in Pakistan, Purchase of Commercial Real Estate in Pakistan, Contract Disputes in Pakistan, Employment Contracts in Pakistan, Foreign Collaboration and Joint Ventures in Pakistan, Mergers and Acquisitions.
Disclaimer: The information available above is not intended to be comprehensive, and many details which may be relevant to particular circumstances have been omitted. Accordingly, it should not be regarded as being complete source of foreign company law information. Web users are advised to seek independent professional advice before acting on anything contained herein. Mumtaz & Associates will not take any kind of responsibility for the consequences along with errors or omissions.
Copyright Registration & Infringement
Disclaimer: This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice.
Q. What law regulates Copyright laws in Islamic Republic of Pakistan?
A. Copyright laws are regulated by the Copyright Ordinance, 1962 and Copyright Rules, 1967 and they extend to whole of Pakistan.
Q. Who is the first owner of copyright as per copyright laws?
A. Author of a work shall be the first owner of the copyright.
Q. Is copyright registration necessary for protection in Pakistan?
A. Copyright Ordinance, 1962 does not require compulsory registration of copyright, copyright is secured automatically when work is created, but registration does provide certain rights and is highly recommended.
Q. Are computer software programs protected by copyright law in Pakistan?
A. Yes, computer software programs are protected by copyright law. Copyright protects an author’s original expression in a computer program.
Q. I am writing for a company, who owns the copyright, me or my company?
A. The general rule is that the person who creates a work is the author of that work and if a work is “made for hire,” then the employer, and not the employee, is considered the author. The employer may be an individual, firm, company or an organization.
Q. Can I copy or use text from another website on mine; do I need to give citation, any infringement?
A. Legally and ethically it is wrong you cannot copy someone’s work, however, when you copy a work and cites original work from which it is copied then there is no infringement and if the website has terms of use or a license agreement you should need to follow that.
Q. Someone infringed my copyright. What can I do?
A. Then court action is necessary to stop him.
Q. What is the duration of Copyright?
A. Copyright Ordinance 1962 provides that in any literary, dramatic, musical or artistic work published within the life-time of the author until fifty years from the death of the author and term of copyright in cinematographic, records and photographs shall subsist until fifty years from the beginning of the calendar year next following the year in which the work is published.
Q. What is meant by plagiarism?
A. It is the attempt to passing off someone’s work as your own.
Q. Someone copied my website, how can I protect my website?
A. You can display a copyright notice on your website so that infringers cannot claim they do not know your work is protected, to prevent the defense of innocent infringement, even though copyright notice is not required.
Q. If something like website, book etc. doesn’t have a copyright notice can it be copied?
A. No, copyright applies as soon as the work is created you need to take permission from the author.
Q. Can I copyright my website?
A. Yes.
Q. Who owns a copyright in a movie and song?
A. The producer of the movie is the first owner of the copyright subject to any prior agreement and as song has various components in it like music, lyrics etc. which include multiple subject matter of copyright in it and cannot be merged. Thus, no single person owns a song and cannot have a copyright over it but there are few exceptional cases which are considered where the music, lyrics and all the components are authored by the same person.
Q. I am translating a book from English into Urdu? Do I need permission from author or publisher?
A. Yes, you do need permission to translate a book and can also apply to the Copyright Board for a licence to produce and publish a translation.
Q. What is a copyright license agreement?
A. This is an agreement by which the owner of the copyright in a work permits another person to exercise his rights; the said agreement has to be in writing.
Q. I found an image on “Google Images” can I use it?
A. Your question is answered by Google Images which is reproduced “The images identified by the Google Image Search service may be protected by copyrights. Although you can locate and access the images through our service, we cannot grant you any rights to use them for any purpose other than viewing them on the web. Accordingly, if you would like to use any images you have found through our service, we advise you to contact the site owner to obtain the requisite permissions.” You can also read from this given link http://www.google.com/intl/en_extra/help/faq_images.html.
Q. After author’s death how will the right of inheritance will be transferred as regard to copyright?
A. Inheritance law will be applied and rights will be transferred.
Q. When copyright infringed?
A. Copyright in a work shall be deemed to be infringed when any person without the consent of the owner of the copyright, without a licence granted by such owner or the Registrar of Copyrights does anything, the exclusive right to do which is by copyright ordinance conferred upon the owner of the copyright.
Q. I bought a book protected by copyright, am I free to make copies as I wish?
A. No, you should abide by copyright laws. Buying a copy of book, computer program, video, CD etc. by itself does not necessarily give you the right to make further copies. The right will remain with the owner, whose permission is necessary.
Q. When can I use a work under an exception to copyright or what acts which do not constitute infringement?
A. Copyright Ordinance, include a number of limitation and exceptions, which limit the scope of copyright protection, and which allow free use of woks under certain circumstances. The object of these provisions is to encourage private study, research and promotion of education. The exceptions contained in the copyright ordinance also include fair dealing of a copyrighted work.
Q. According to Copyright Ordinance what are the civil remedies for copyright infringement?
A. A copyright owner can take legal action against person who infringes the copyright. The copyright owner is entitled to remedies by way of injunctions, damages and accounts and otherwise as are or may be conferred by law for the infringement of right.
Q. What are the remedies for infringement of copyright?
A. Copyright law enables right holders to take legal action against anyone encroaching on the exclusive rights of the copyright holder. There are three kinds of remedies against infringement of copyright according to Copyright Ordinance, 1962 i.e. civil remedies, criminal remedies and administrative remedies.
Q. Copyright offence committed by a company, who will be responsible?
A. According to section 71 of the Copyright Ordinance, 1962 where any offence under the said ordinance has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to the company for, the conduct of the business of the company, as well as the company shall be deemed to be guilty of such offence and shall be liable to be proceeded against and punished accordingly.
Q. What are the offences and penalties for infringement of Copyright law in Pakistan?
A. Offences and Penalties are mentioned as under:
- Penalty for unauthorised reproduction or distribution of counterfeit copies of sound recording and cinematographic work shall be punishable with imprisonment which may extend to three years or with fine or with both.
- Penalty for unauthorised reproduction or distribution of counterfeit copies of sound recording and cinematographic work shall be punishable with imprisonment which may extend to three years or with fine or with both.
- Penalty for exploitation and appropriation of recording or audiovisual work intended for private use shall be punishable with imprisonment which may extend to three years or with fine or with both.
- Penalty for making copies or reproduction in excess of those authorized by the copyright owner or his successor in title shall be punishable with imprisonment which may extend to three years or with fine or with both.
- Penalty of unauthorized rental of cinematographic works and computer programmes shall be punishable with imprisonment which may extend to three years or with fine or with both.
- Possession of plates for purpose of making infringing copies shall be punishable with imprisonment which may extend to two years or with fine or with both.
- Penalty for making false entries in the Register, etc., or producing or tendering false evidence shall be punishable with imprisonment which may extend to two years or with fine or with both.
- Penalty for making false statements for the purpose of deceiving or influencing any authority or officer shall be punishable with imprisonment which may extend to two years or with fine or with both.
- Penalty for making false statements for the purpose of deceiving or influencing any authority or officer shall be punishable with imprisonment which may extend to two years or with fine or with both.
- False attribution or authorship, etc. shall be punishable with imprisonment which may extend to two years or with fine or with both.
© Copyright 2011 Mumtaz & Associates. All Rights Reserved.
Frequently Asked Questions (FAQs) on Dishonour of Cheque in Pakistan:
Q. What are the conditions that make dishonouring of a cheque an offence in Pakistan?
A. When cheque is issued dishonestly by one person to the other.
Q. In what circumstances dishonouring of cheque is not an offence in Pakistan?
A. Each case has its own facts; however, dishonouring of a cheque is not an offence when signatory has made arrangements with his bank to ensure that the cheque will be honoured and that the bank was at fault in not honouring the cheque.
Q. What is the penalty for dishonouring of a cheque in Pakistan?
A. Issuance of cheque dishonestly is an offence under the statute both civil and criminal remedies could be availed simultaneously in such matters. Punishment on bouncing of cheque is imprisonment which may extend to three years and with fine.
Q. What can I do when a cheque is dishonoured for the reason of insufficient funds? What legal action I can take to get the amount cleared?
A. You can lodge First Information Report against the signatory and at the same time can also file a civil suit, there is no legal bar if criminal and civil proceedings continue simultaneously. Our advice is before lodging F.I.R. notice of dishonor of cheque should also be given.
Q. I have got my cheque dishonoured which was issued by a company, is there any remedy to recover my amount? Presumption is we cannot lodge F.I.R. against a company.
A. Each case has its own facts, you can lodge First Information Report against the signatory who issued the cheque and at the same time can also file a civil suit, there is no legal bar if criminal and civil proceedings continue simultaneously.
A. After getting him declared as proclaimed offender you should ask the court to proceed in the matter and get all your evidence recorded, this will help you when he will be arrested and if at that time for some reason or the other witnesses are not available court can proceed with the matter on the basis of the evidence earlier recorded in his absence. Simultaneously, on his last known address you can also file suit for recovery in the civil court.
Q. I have a cheque dishonoured, now where to lodge an F.I.R.? The place of the bank where the cheque was dishonoured or the place where the cheque was handed?
A. Each case had to be seen on its own facts and circumstances you can lodge FIR where the cheque was dishonoured or the place where the accused carries out his business.
Q. A partnership firm gave a cheque to me, cheque was presented which was dishonoued. Now they closed the partnership firm and dissolved it. My question is can still I have any remedy?
A. On civil side all the partners are jointly and severally liable to pay the amount but as far as criminal proceedings are concerned a partner who issued/signed the cheque can only be prosecuted.
Q. We are three partners in a firm, two of partners are active and they are running the business and taking care of day to day affairs of the firm. My position is only as a sleeping partner. Cheques are signed and issued by the two working partners. In case a cheque bounces and legal action takes place under section 489-F Pakistan Penal Code are all the partners are liable or only those who have signed the cheque?
A. The person who issued the cheque will be prosecuted. And on civil side if the person committing an offence is a partnership or a company every person who at the time of the offence was in charge of and was responsible shall be deemed to be guilty and liable to be proceeded against and punished accordingly.
Q. What about offence by companies in Pakistan?
A. If cheque is issued dishonestly, signatory of a cheque and CEO of the company will be prosecuted.
Mumtaz & Associates can advice you on cheque bouncing, recovery of debt, recovery of money, legal notice for cheque dishnonour, lodging of First Information Report (F.I.R.) and other related matters to individuals, firms, companies both local and foreign. You can contact Mumtaz & Associates for detailed consultancy and advice.
Disclaimer: This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice.
© Copyright 2011 by Mumtaz & Associates. All rights reserved.
When husband and wife cannot live happily together within the limits prescribed by Almighty Allah then they can dissolve their marriage through divorce or khula. The husband can pronounce divorce and wife can file a suit for dissolution of marriage and can also pronounce Talaq, if such right has been conferred upon her. Every divorce or khula case has its own facts, circumstances, drawbacks, challenges and solutions.
We recognize that your case is not just unique, but also critically important to you. At Mumtaz & Associates you will find the help, assistance and attention to bring about the change you need according to the Family Laws of Pakistan.
Q: In Pakistan what are the terms used to identify the parties in a divorce proceeding?
A: The party filing the suit is called the “Plaintiff”, while the other party to the divorce proceedings is referred to as the “Defendant”.
Q: What are the ways marriage can be dissolved in Pakistan?
A: Marriage can be dissolved in any of the given ways i.e. divorce by the husband at his will without the intervention of a court commonly called a “Talaq”; by mutual consent of the husband and wife, without intervention of the court; by a judicial decree at the instance of the court and by the wife in exercise of a contractual right of divorce.
Q. What is meant by “Khula”?
A: Khula is the right of a wife in Islam to seek dissolution of marriage from her husband through intervention of the court. A woman seeks a “khula” while man gives a “Talaq”.
Q. What grounds are available to a wife to get Divorce according to Laws of Pakistan?
A: As per Dissolution of Muslim Marriages Act a woman shall be entitled to obtain a decree for the dissolution of her marriage on any one or more of the following grounds:
Whereabouts of the husband not known for four years; Husband has neglected or failed to provide maintenance; Husband has sentenced to imprisonment for a period of seven years or upwards; Husband failed to perform marital obligations for a period of three years; Husband was impotent at the time of marriage; Husband has been insane for two years; She was married when she was minor; Husband treats with cruelty; Leads an infamous life; Attempts to force her immoral life; Venereal disease; Incurable form of leprosy; Disposes of her property; Obstructs her in observance of her religious practice; If she cannot live with the husband within the limitation imposed by the Almighty Allah.
Beside above, there are also other grounds available to wife for the dissolution of marriages under Muslim Law.
Q. What is the procedure to obtain “Khula” (dissolution of marriage) in Pakistan?
A: If wife is not delegated the right of divorce in her nikanama (marriage contract form) then she would apply for khula in the court. When the wife files a suit for dissolution of marriage the court issues notice to the opposite party i.e. the husband and if he fails to appear after the due process of posting and publication the court can proceed with the case ex-parte and pass a decree. In case where the husband or his representative appear he is required to file a written statement following which the court has to fix a date for pre-trial proceedings for reconciliation. If reconciliation fails court will pass decree for dissolution of marriage.
Q. After obtaining khula decree from the court is dissolution of marriage is complete?
A: No, after obtaining Khula decree from the court you need to file an application before the Chairman Arbitration Council/Union Council of your jurisdiction for obtaining dissolution of marriage certificate.
Q: Can a wife be delegated right of pronouncement of divorce?
A: Yes, wife can divorce; if so delegated in the nikanama (marriage contract form) the said right is called Talak-e-Tafweez (delegated powers of divorce). Husband may delegate right to divorce while contracting marriage as per paragraph 18 of the Nikahnama, then the wife has a right to divorce, otherwise it is the exclusive right of the husband. But if wife has no such right and she wants dissolution of marriage then she can file a suit for the “Dissolution of Marriage” on the basis of Khula or seeks divorce both through intervention of the court.
Q: How would I know where my divorce case will be filed in Pakistan?
A: Your case can be filed where marriage has taken place or where marriage was registered; where the defendant is residing. Wife can also file a case at the place where she ordinarily resides.
Q. Whether overseas Pakistanis wives can get divorce in Pakistan via online?
A: No.
Q: Can overseas Pakistani file for divorce without coming to Pakistan?
A: Yes, but for that her marriage should be registered in Pakistan she can appoint someone through Special Power of Attorneywho will represent her on her behalf in the court.
Q: What is the law for custody of children for divorcing couples in Pakistan?
A: Guardian and Wards Act is the law, family court can also entertain suit relating to custody of children according to Family Courts Act 1964. General rule is that the interest and welfare of the minor child should be of paramount consideration.
Q. What are the rights of wife to property after divorce has taken place in Pakistan?
A: The bridal gifts given to wife in dowry/jahaiz are the exclusive property of wife during or after the marriage. Upon dissolution of marriage wife is also entitled to claim deferred dower and maintenance during the period of Iddat.
Q. What is the procedure husband should adopt to give divorce to his wife in Pakistan?
A. Under the Muslim Family Laws Ordinance any man who wishes to divorce his wife shall, as soon as may be after the pronouncement of Talaq/Divorce in any form whatsoever, give a notice in writing to the chairman of the Union Council and also send a copy to the wife. Within thirty days of the receipt of notice of Talaq chairman shall constitute an arbitration council for the purpose of bringing about reconciliation between the parties and after expiry of ninety days if reconciliation fails divorce will take effect.
Q. Can husband and wife dissolve their marriage through mutual consent?
A: Yes, they can dissolve their marriage through mutual agreement; the said divorce is called Talaq-e-Mubarat, literal meaning of Mubarat is ‘obtaining release from each other’. The offer for separation in Mubarat may proceed either from the wife or from the husband and as soon as it is accepted dissolution is complete.
Q: Whereabouts of my husband are not known for a long time can I end my marriage?
A: Yes, you can end this marriage under the Dissolution of Muslim Marriage Act 1939 if whereabouts of your husband are not known for a period of four years.
Q: Notice of Talaq sent through Chairman Union Council can it be revoked?
A: Yes, divorce/talaq notice can be revoked before expiry of ninety days from the date on which it was delivered.
Q: How do I protect myself from harassment by my spouse and his or her family members?
A: If you find yourself threatened, assaulted etc. by your spouse you may file a complaint at the police station against your spouse.
Q: I have applied for a divorce, is it safe now to go for new marriage?
A: You should not plan to remarry until the divorce is finalized.
Mumtaz & Associates provide services and consultancy on matrimonial and family dispute resolution; divorce agreement preparation; advice on divorce in Pakistan; divorce for overseas Pakistanis; khula for overseas Pakistani’s; court marriage; registration of marriages; polygamous marriages; failure to give talaq notice; division and settlement of matrimonial issues; re-marriage issues.
You can contact Mumtaz & Associates for detailed consultancy and advice.
Illegal Occupation of Property
The said information is not intended to be a substitute for professional legal advice because factual circumstances are different in each case. Detailed legal research is necessary to resolve any dispute or before giving any formal opinion.
Disputes between individuals over title-to or possession-of immovable property, and illegal or forcible dispossession of a rightful owner are not unusual in Pakistan, wherein a class of persons called property grabbers, qabza group or land mafia are acting with nefarious objectives to illegally or forcibly take possession of immovable properties belonging to others. Their easiest victims are overseas Pakistanis or non-resident Pakistanis who have substantial investments in residential and commercial real estate in Pakistan. Innocent owners’ faces tremendous hardship when it comes to getting property vacated in Pakistan from tenants or unauthorized occupiers known as qabza group, property grabbers or land mafia. Their properties are often grabbed by others, including relatives, and they have almost no redressal and are helpless. They run from pillar to post to get relief but in vain. To curb the said practice, in the year 2005, the Illegal Dispossession Act was promulgated to protect the lawful owners and occupiers of immovable properties from illegal or forcible dispossession. The said law applies to dispossession from immovable property by the property grabbers, qabza group and land mafia with punishment. Aim of the law is to discourage the property grabbers, qabza group or land mafia and provide speedy relief to the aggrieved persons.
Q: What is the name of law to curb the activities of the property grabbers?
A: Illegal Dispossession Act, 2005 is the law which is applicable to the whole of Pakistan
Q: What is the purpose of Illegal Dispossession Act, 2005?
A: To protect the lawful owners and occupies of immovable properties from their illegal or forcible dispossession by the property grabbers/qabza group or land mafia.
Q: If anyone disposes lawful owner from his property is there any punishment for him?
A: Whoever as a property grabber is involved in an illegal possession or illegal dispossession is punishable with imprisonment and fine.
Q: Whether the Illegal Dispossession law is more efficacious law?
A: Before the Illegal Dispossession Act, 2005 there was no specific law for prevention of forceful and illegal dispossession of lawful owner of immovable property. Such cases were tried in civil courts and take many years to get the dispute resolved, but after promulgation of Illegal Dispossession Act, 2005 aggrieved person can file a complaint in the court of Sessions which is a speedy remedy.
Q: Usually in property disputes parties file civil suits, but in case of property grabbers what to do?
A: In case of property grabbers/qabza group, you do not need to file civil suit in Civil Court instead of civil suit you are to lodge a complaint in the Sessions Court. Upon a complaint the court may direct the officer-in-charge of a police station and the concerned revenue officer to investigate in the case.
Q: I am having dispute over a house of our ancestral my relative got possession of it, can I lodge a complaint under the Illegal Dispossession Act, 2005 in Session Court?
A: No, a person has to be a property grabber or a member of Qabza Group or land mafia before he can be proceeded against under the Illegal Dispossession Act, 2005 In case of dispute among the co-sharers or co-owners you have to seek your remedy before civil court.
Contact Mumtaz & Associates for further professional legal consulting and advice.
Landlord and Tenant Law in Punjab
NOTE: Punjab Rented Premises Act, 2009 is ONLY applicable to the province of Punjab, Pakistan.
The purpose of under mentioned brief is to provide landlords and tenants in Punjab with information about their responsibilities and legal rights especially for overseas Pakistanis who want to rent out their residential and commercial properties. The said information is not intended to be a substitute for professional legal advice because factual circumstances are different in each case, detailed legal research is necessary to resolve any dispute or giving any opinion.
Q: Which law deals for regulating relationship between landlord and tenant in respect of rented premises in the province of Punjab, Pakistan?
A: Punjab Rented Premises Act, 2009 is the Act which regulates the relationship of landlord and tenant in respect of rented premises in the province of Punjab, Pakistan.
Q: Whether the Punjab Rented Premises Act, 2009 is applicable to commercial premises also?
A: Rented Premises law governs the rental of commercial and residential property both.
Q: Is Punjab Rented Premises Act, 2009 is also applicable in Cantonment areas?
A: The said law is not applicable in cantonment areas the law which governs Cantonment area in tenancy matters is Cantonment Rent Restriction Act, 1963.
Q: Is agricultural land also covered in Punjab Rented Premises Act, 2009?
A: No, agricultural land is not covered.
Q: Is agreement in writing necessary to create the relationship of landlord and tenant?
A: Yes. Landlord shall not let out the premises to a tenant, except by a tenancy agreement. Tenancy agreement should be in writing and should be registered by rent Registrar. A tenancy agreement entered in the office of a rent Registrar shall be a proof of the relationship of landlord and tenant.
Q: What is tenancy agreement?
A: Tenancy agreement is an agreement in writing between landlord and tenant by which landlord lets out his premises to a tenant.
Q: How is tenancy agreement made?
A: There is no prescribed format for a tenancy agreement. The contents of the tenancy are up to the landlord and the tenant, however tenancy agreement must comply with the provisions of Punjab Rented Restriction Act, 2009
Q: Who is responsible for registration of the tenancy agreement before Rent Registrar?
A: Landlord is responsible to present the agreement before the rent Registrar for registration.
Q: What happens if tenancy agreement is not registered in the office of Rent Registrar?
A: If tenancy agreement is not registered with rent Registrar then Rent Tribunal shall not entertain an application on behalf of landlord unless he deposits fine equivalent to 10% of the value of the annual rent in the Government Treasury and in case the tenant needs any legal remedy he has to deposit fine equivalent to 5% of the annual rent in Government Treasury.
Q: What are the provisions for rent increment in The Punjab Rented Premises Act, 2009?
A: The Act recognizes the agreement between landlord and tenant for enhancement of rent, in terms of section 6 (1) (d) of the Punjab Rented Premises Act. The said section states a tenancy agreement shall contain rate of rent, rate of enhancement and due date and mode of payment of rent.
Q: What is the mode of payment of rent?
A: Tenant shall pay or tender the rent to the landlord in the mode and by the date mentioned in the tenancy agreement and if the date is not mentioned then not later than tenth day of the following month.
Q: What if mode of payment is not mentioned in the tenancy agreement?
A: If mode of payment is not mentioned in the tenancy agreement then tenant shall pay the rent to the landlord by paying cash, through money order, or deposit in the bank account of the landlord.
Q: How does the eviction of tenant takes place according to Punjab Rented Premises Act, 2009?
A: A landlord may seek eviction of the tenant if period of tenancy has expired; tenant has failed to pay rent; tenant has committed breach of tenancy agreement; tenant has used the premises for a purpose which is different from the purpose for which it was let out and if premises is sub-let without permission of landlord.
Q: What is subletting? Can a tenant without consent of landlord sublet rented premises?
A: Subletting is an act where tenant re-transfers the rented premises to any other person. Tenant cannot sublet rented premises without the consent of landlord.
Q: Can a lease be terminated before an agreed time period?
A: Lease can be terminated by the consent of parties or by an order of the Rent Tribunal.
Q: Who will pay taxes on the property, landlord or tenant?
A: Tax, fee or charge will be paid by the landlord; however, if a landlord fails to pay a tax, fee or charge relating to the premises then tenant shall pay such charges and will be entitled to reimbursement.
Q: Can landlord and tenant freely agree to determine any rent or the law fixes any particular amount of rent?
A: Punjab Rented Premises Act does not fix any amount or rate of rent. The parties may agree to any amount of rent by mutual consent.
Q: What can a tenant do if a landlord refuses to return his security?
A: There is no provision in the Punjab Rented Premises Act, 2009 for filing an application by the tenant for refund of security therefore in such cases the tenant shall have to file a civil suit before the competent civil court.
Q: Can I make rent agreement for more than 11 months or is it compulsory to make agreement for less than 11 months.
A: An agreement of tenancy can be made for any period agreed between the parties. If such an agreement is for a year or exceeding one year then such agreement requires registration under the Registration Act, 1908.
Q: My lease /rent agreement has been expired, now tenant has been overstaying. The agreement was not renewed; tenant now refuses to vacate my house. What legal action can be taken?
A: A landlord can institute an application for eviction of tenant.
Q: Can a landlord get his property vacated from a tenant, by filing a petition, when there is no written agreement of tenancy between landlord and tenant?
A: No petition for eviction of tenant is competent under the Punjab Rented Premises Act, 2009 unless the tenancy agreement is in writing. Therefore, a suit for possession before a Civil Court shall be competent.
Q: If a tenant wants to improve the landlord’s premises, can he do so and will he end up paying more rent because of improvements made by him?
A: The improvement to the property and any fixation depends on agreement between the parties.
Q: Is a verbal tenancy agreement legal?
A: No, these types of agreement are not recommended by Punjab Rented Premises Act, 2009.
Q: Do tenancy agreements need to be witnessed?
A: Yes it needs to be witnessed.
Mumtaz & Associates provides services in: Resolving dispute between landlord and tenant; Drafting and negotiating commercial leases for offices, shops and industrial projects; Residential and Commercial Transactions; Advising overseas or nonresident Pakistanis on preventive measures they can take for their property; Landlord/Tenant litigation; Property Management Services; Deed for modification of the terms of lease; Business Lease renewals and terminations; Rent review disputes and all other connected matters.
Contact Mumtaz & Associates for further professional legal consulting and advice.
Pakistan Property & Real Estate Law
Following are Frequently Asked Questions (FAQs) about Property and Real Estate in Pakistan. For property & real estate legal advise & consulting, please visit our Pakistan Property & Real Estate Laws page.
Q. What is Aks-Shajra?
A. Aks-Shajra means image of a specific piece of land/specific khasra number from the map/plan of an estate or village defining its boundaries.
Q. What is meant by Fard Malkiat?
A. Fard Malkiat also known as (Record of Rights/ Jama Bandi/Misal Haquiat/ Register Haqdaran-e-Zameen) maintained for determination/record of various types of rights in the immovable property.
Q. What is Mutation (Intiqal)?
A. Mutation is a document containing an order by a revenue officer; who must be at least an Assistant Collector of grade III, whereby an entry in the record of rights is to be altered, changed or mutated in revenue record.
Q. What is meant by Tattima Registry?
A. Tattima means “supplementary” and Tattima Registry means supplementary sale deed in specified area.
Q. What is meant by Khasra?
A. Khasra is a piece of land with specific measurements and a specific number.
Q. What is Khasra Garrdwari?
A. Register Kharsa Gardwari is a register maintained for record of possession/cultivation.
Q. What is meant by Survey?
A. A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
Q. Is mutation is a title document?
A. No, mutation is not a title document.
Q. What is the name of the document, which creates title in immovable property?
A. Register Sale Deed (Registry /Baye-Nama) is a document, which creates a title in the immovable property.
Q. What is meant by Conveyance Deed or Sale Deed?
A. Conveyance Deed or Sale Deed is a deed document by which the title of property is conveyed by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. Deed document will help you ascertain whether the property, which you are buying, is on land belonging to any development authority, society, builder in which the property is located, whichever the case may be.
Q. From where I can obtain my house documents or title deeds of my property?
A. You can obtain your house documents or title deed documents from office/department by which title of the house was conferred or transferred.
Q. What laws generally deal with real estate in Pakistan?
A. Among the laws, which deal with real estate in Pakistan, are The Transfer of Property Act, 1882, Land Revenue Act, 1967, Stamp Act, 1899 and Registration Act, 1908.
Q. What safety precautions should I take before buying property or real estate in Pakistan?
A. Before buying property in Pakistan a complete and thorough probe in respect of title of the seller to the real estate must be carried out. A general practice is to investigate title of the current seller and any previous owner. Original title document in favor of the vendor must be obtained along with other relevant documents including mutation in favor of the vendor, a fresh copy of fard, aks shajra and no-objection certificate or non-encumbrance certificate as the case may be. If the vendor is selling the property in the capacity of an attorney of the owner then it must be ensured that the power of attorney is duly registered with the relevant sub-registrar. A holder of a forged and fabricated power of attorney is not at all able to transfer a valid title in an immovable property to a third party.
Q. In name of a Company, property is registered before purchasing it, what documents should I inspect?
A. Before purchasing property from a company you should verify from the Registrar of Companies at Securities & Exchange Commission of Pakistan that the property is not mortgaged or is not being used as a security against a loan, otherwise it will not be considered as a freehold property. In addition, check memorandum of association that who is authorized to act on behalf of company for selling the property, if resolution is required then the same must be passed and verified. Further, inspect original title documents from the selling company.
Q. Can corporate bodies use residential properties as office space?
A. It is illegal to put residential properties to commercial use. However, service-based industries are allowed to operate from residential areas.
Q. Can foreigners buy Property in Pakistan?
A. Yes, foreigners can buy property in Pakistan but after completing all legal formalities.
Q. What inheritance laws apply in Pakistan?
A. Inheritance laws in Pakistan depend on religious affinities, Muslim Personal Laws for the Muslims and persons other than Muslims their personal laws.
Q. Is transfer of every immovable Property needs registration in Pakistan?
A. Transfer in the case of immovable property of the value of Rs 100/- and upwards only be made by a registered sale deed.
Q. An overseas Pakistani without visiting Pakistan can buy Property?
A. Yes, without coming to Pakistan an overseas Pakistani can buy property in Pakistan.
Q. What are the documents required to legally own a house?
A. Any deed verifying transfer in your favour i.e. sale deed, allotment letter and sale certificate.
Q. How do I own a house?
A. You can own house by purchasing from a private person, private builder, by allotment or purchase from public authority i.e. any development authority (LDA, CDA, FDA, MDA etc.) and by becoming member of any co-operative housing society.
Q. What is Power of Attorney?
A. Power of Attorney is the power given to an agent by the principal to execute several acts and deeds for and on behalf of the principal. A power of attorney may also be given by a person to another to appear before any Court, Tribunal and Authority, buy sell, maintain real estate etc. When power is given in respect of a number of acts in a number of transactions, it is called General Power of Attorney and when power is given in respect of a particular act pertaining to one transaction; it is called Special Power of Attorney. General Power of Attorney must be registered.
Q. Person holding Power of Attorney can transfer property in his name?
A. No. The person who is holding Power of Attorney has a fiduciary duty to act in your interest and try to do what you would do for yourself if you were able. Third parties will presume the person is acting on your behalf.
Q. Can I revoke my Power of Attorney?
A. Yes.
Q. When would a Power of Attorney gets cancelled?
A. Power of Attorney automatically gets cancelled on the death of Executants’ and when get cancelled by the Executants’.
Q. Is my Power of Attorney effective after I die?
A. No, Power of Attorney will ends upon your death.
Q. I am going to buy a flat in a building under construction, what are the papers should I check?
A. Check approved plan of the building along with the number of floors; ensure that the floor that you are buying is approved. Check if the land on which the builder is building is his or he has undertaken an agreement with a landlord. If so, check the title of the land ownership. Check the building byelaws as applicable in that area and ensure that the building is without any violation of front setback, side setbacks, height, etc. Check specifications given in the agreement to sell and that given in the brochure and see if he is providing the same actually on the ground or not. If the builder is a company incorporated with Securities & Exchange Commission of Pakistan, it may be checked that the company is allowed to do the business of sale and purchase of real estate.
Q. Can immovable property be sold while it is mortgaged?
A. No, immovable property cannot be sold.
Q. What are important documents one should check before buying any property?
A. Check approved layout plan, approved building plan, ownership documents, ask for all the deeds of title related to the property to be purchased, examine the deeds, ascertain the survey number, check previous encumbrances and loans, if any, on the property, request vendor(seller) to obtain, if applicable, consent permission, sanction, no objection certificate of various authorities, tax receipts and bills, measure the land etc.
Q. What is stamp duty and who is liable to pay the stamp duty, the buyer or seller?
A. Stamp duty is a fee/tax levied by the government on transfer of property and must be paid in full and on time. A stamp paid document considered proper and legal document. The liability of paying stamp duty is that of the buyer unless there is any commitment to the contrary.
Q. How to get approved building plan and why it is necessary.
Raising construction without having a building plan approved from the concerned agency is a violation of rules of the concerned Building Control Authority and can lead to demolition of construction. Therefore, for all practical purposes i.e. before raising construction approval for the same is mandatory.
Q. In Pakistan who maintains Land Record?
A. In Pakistan land records are maintained by district administration revenue department for deciding ownership and boundaries of land or property.
Q. I am a co-sharer in a property can I sell the said property?
A. Yes, you can sell the property but only to the extent of your share in the property and without specific boundaries unless consented expressly by the other co-sharer or co-sharers.
Q. Whether a sale deed drafted by a Wasiqa Nawees/Arzi Nawees is reliable?
A. No, sale deed must be drafted by a lawyer having knowledge of the relevant laws regarding transfer of property.
Q. What are essentials of Gift?
A. Essentials of gift are 1. Offer by the Donor (owner) 2. Acceptance by the Donee (to whom gift is being made) and 3. Delivery of possession.
Q. Can gift be revoked?
A. Yes, gift can be revoked except if made in favor of a person who falls in prohibited degree i.e. a person with whom marriage cannot be contacted.
Q. What are distinguishing features of gift from those of will?
A. Gift always can be made in the lifetime and it become effective at the very moment when it is complete, whereas will only can take effect after death of its maker. Other distinguishing feature is that an owner of property can make gift of his entire property in favor of a legal heir of him/her in his life time but he cannot make a will whereby the whole property is intended to be given to one legal heir. He/she can make will to the extent of 1/3rd of his/her holding in favor of any who is not legal heir and if made in favor of a legal heir then requires agreement/consent of other legal heirs.
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice.
For competent & detailed legal advice please contact us.
Partnership Business Registration
Frequently Asked Questions (FAQs) about Partnership Law in Pakistan:
Q. What is the definition of partnership under Partnership Act, 1932?
A. “Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm name”.
Q. What are the rules framed under Partnership Act, 1932?
A. By the Provincial Governments in exercise of powers conferred by section 71 of the Partnership Act, 1932 rules which framed are Punjab Partnership (Registration of Firms) Rules, 1932, North-West Frontier Province Partnership Rules, 1932 and Sindh Partnership Rules, 1932.
Q. Is registration of partnership compulsory?
A. No, registration of partnership is not compulsory by law but it’s better to do so.
Q. Is a written partnership agreement required for partnership?
A. Yes there must be an agreement between the partners.
Q. What are different types of partnerships?
A. Partnership Act, 1932 provides different types of partnership i.e. Partnership at-will and Particular partnership. Partnership at-will is a partnership where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership. It is a partnership for indefinite period but can be dissolve after giving notices to all the partners. Particular Partnership is a partnership where a person may become a partner with another person in particular adventures or undertakings for a specified period. Particular partnership will be dissolved on the completion of particular business or undertaking.
Q. What is a Partnership Deed or Partnership Agreement?
A. Partnership deed or agreement is a document in which mutual rights and obligations of all the partners and conditions relating to partnership and the regulations governing its internal management and organizations are documented, the said deed should be signed by all the partners.
Q. What is deed of dissolution?
A. When the firm is dissolved by mutual consent of partners, deed of dissolution is executed. The dissolution deed provides for the valuation of assets including goodwill and distribution of the same amongst the partners. The deed of dissolution should clearly mentions debts, liabilities and obligations of the firm who will pay or discharge the same in the audit and accounts.
Q. Is deed of dissolution should be registered?
A. Yes deed should be registered.
Q. What is the difference between dissolution of partnership and dissolution of firm?
A. A firm can continue on dissolution of partnership, but on dissolution of firm, partnership will automatically end.
Q. What is meant by firm?
A. A firm is a relationship between two or more persons who have agreed to share profits of a business according to their participation. The partners are collectively called a “firm” and the name under which they do business is called the “firm name”. Any two or more persons but not more than twenty can form a partnership to do any one or more businesses through an agreement in writing.
Q. What is meant by dissolution of firm?
A. The dissolution of partnership between all the partners of a firm is called the “dissolution of firm”.
Q. How a firm can be dissolved?
A. A firm can be dissolved by agreement, by compulsory dissolution, by happening of certain contingencies, by notice of partnership at-will or by order of the court.
Q. Who can be a partner in a firm?
A. Ordinarily, it is individuals who constitute partnerships. A lunatic can also be a partner through his guardian. Similarly, a minor can be admitted to the benefits of a partnership but he is not responsible for loss. Apart from the natural persons, a limited company can also enter into partnership not only with a natural person but also with another limited company. However, a firm cannot be a partner in another firm nor can be an Association of Persons (AOP).
Q. Is it necessary to form a company or a partnership firm to start a new business?
A. No, it is not necessary to form a company or a partnership to start new business. Business can be started as a sole proprietorship.
Q. Are partners personally liable for business debts?
A. Yes, partners are personally liable for business debts. A partner is also legally bound by business transactions made by him or by his partners and can be held personally liable for those transactions. The liabilities of partners are unlimited.
Q. What happens if the number of partners falls below two?
A. If the number of partners falls below two then partnership will be dissolved.
Q. What is maximum number of partners in a firm?
A. Number of partners in a firm shall not exceed twenty a partnership having more than twenty persons is illegal.
Q. Can I give any name to my partnership firm?
A. A partnership can have any name it likes so long as it does not impinge any trademarks or trade name and a firm name shall not contain any words namely, “Government”, “Jinnah”, “Quaid-i-Azam or words expressing or implying the sanction, approval or patronage of the Federal Government or any Provincial Government or of the Quaid-i-Azam, except when the Provincial Government signifies its consent to the use of such words as part of the firm name by order in writing. A firm name shall not contain the name of the “United Nation” or its abbreviations through the use of its initial letters or of any subsidiary body set up by that body unless it has obtained the previous authorization of the Secretary-General of the United Nations in writing. A firm name shall not contain the name of the “World Health Organization” or its abbreviations through the use of its initial letters unless it has obtained the previous authorization of the Director General in writing. A firm name shall not contain any word which may be declared by the Provincial Government, by notification in the official Gazette, to be undesirable.
Q. Can a company be a partner?
A. Yes, a company is a juristic person and therefore can become a partner in a partnership firm, if it is authorized by its memorandum and articles of association.
Q. How a partner in a firm is retired?
A. A partner may retire with the consent of all the other partners, in accordance with an express agreement by the partners and where the partnership is at will, by giving notice in writing to all the partners of his/her intention to retire.
Q. What are the general duties of partners?
A. Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner or his legal representative.
Q. How partners are taxed?
A. In partnership every partner pays tax on his individual share of profit.
Q. Can a foreigner be a partner in firm?
A. There is no restriction under the law but subject to certain conditions.
Q. Is goodwill of a firm included in its assets?
A. Yes, goodwill is included in the assets of the firm.
Q. We want to sell goodwill of our firm but confused how we will share the price?
A. Where the goodwill is sold value is divisible among the partners in the same manner as they share profits and losses, unless they agreed.
Q. What is meant by Association of Persons (AOP)?
A. Section 80 of Income Tax Ordinance, 2001 defines association of persons which includes a firm, a Hindu undivided family, any artificial juridical person and any body of persons formed under a foreign law, but does not include a company.
Q. How “association of person” is different from “associated person”?
A. Association of Persons (AOP) is defined under section 2(iii) of the Federal VAT (Value Added Tax) Bill, 2010 and associated person is defined under section 3 thereof. AOP refers to a group of persons, while the concept of “associated persons” defines relationship between two persons. Adoption of this concept is a result of harmonization of inland taxes laws & administration under the income tax ordinance.
Q. How to wind up an association of persons?
A. As in the case of Partnership Act, 1932.
Q. We got registered a partnership firm do I need National Tax Number for our firm?
A. Yes, every firm is assigned a national tax number without NTN firm cannot file its returns.
Q. Who has the authority to register partnership firm?
A. District Registrar is Registrar of Firms in his District is the authority to register partnership firm.
Q. Can a firm become partner of another firm?
A. A firm cannot become partner of another firm.
Q. What to include in Partnership agreement or Partnership Deed?
A. While drafting a partnership agreement/deed there are some important points to be kept in view
• There must be at least two major contracting parties.
• Total number of partners should not exceed twenty.
• Name of the Firm under which the business is to be conducted.
• Nature of the business to be conducted by the partners.
• Location of the business where it is to be opened and branches, if any.
• List of partners, their names, addresses of the partners with Computer National Identity Card Nos. should also be placed in the agreement.
• The amount of any salary payable to the partners..
• The division of work among the partners for the management of the firm.
• The name of the dealing bank.
• Provisions regarding the preparation, audit and signing by the partners of annual accounts.
• The duration of partnership whether at will or for a fixed period or a particular venture should be stated.
• The deed should indicate the share in which profits and losses are to be divided among partners.
• The amount that each partner shall be allowed to withdraw.
• Rules regarding to retirement, debt and admission of partners.
• How the value of good will of the firm will be determined.
• A provision regarding the partner who is to manage the affairs, sign cheques may be made.
• The date on which accounts are to be closed should be specified.
• Rights and duties of each partner should be mentioned.
• Settlement of accounts at the dissolution of the firm.
• In case of dispute provision should be made.
• How partnership will be dissolved.
• If the partners intend that the firm should not stand dissolved on death or retirement of a partner, a provision must be made in the deed.
Q. My partner wants to open a bank account in his own name not in name of firm, can he?
A. Implied authority of a partner does not empower him to open a bank account in his own name.
Q. I am living in UK and invested huge amount as a sleeping partner in a firm, for some time received profit regularly but then stopped. Now the said firm is playing delaying tactics as I forced then they issued me cheques which were dishonored. Can you advise me what remedies do I have to get my money back as per Pakistan law?
A. To get your money back you can avail both civil and criminal remedies at the same time, civil remedy is you can file a suit for the recovery of money from the said firm and criminal remedy is you can get registered a FIR (First Information Report) against the firm for the dishonoring of the cheques.
Q. We are four partners in a firm one of partner did fraud with third party for his act is firm liable?
A. Yes the firm and all partners are liable for the fraud committed by one partner on behalf of the firm which causes loss to third party. Any act done by any partner in the course of the ordinary partnership business will bind the other partners also.
Q. One of our partners is going to retire, can we continue the partnership?
A. If provisions have been made in the agreement; the partnership can be carried out even after the retirement of any of the partners. Otherwise as a general rule, the retirement of a partner changes the constitution of the partnership and the remaining partners cannot carry on the business.
Q. One of our partner in a firm is going to retire do he need to give public notice?
A. Yes public notice is mandatory if the partnership is registered under Partnership Act, 1932.
Q. Without giving public notice can a partner retire from partnership/firm?
A. Only a sleeping partner can retire from the firm without giving any public notice to this effect.
Q. There is no partnership agreement how partners should share the profit?
A. According to section 13(b) of the Partnership Act, 1932 partners are entitled to share equally in the profits earned and shall contribute equally to the losses sustained by the firm subject to agreement between the parties.
Q. In our firm one of partner wants to introduce a new partner can I stop him?
A. Yes, according to Partnership Act, section 31 every partner is entitled to prevent the introduction of a new partner into the firm without their consent.
Q. Can a partner on his own submit a dispute relating to the business of the firm to arbitration?
A. No not without others partners permission.
Q. Can I register my firm’s name as trademark?
A. Yes firm name can be registered as a trademark.
Q. Is suit filed by un-registered firm is maintainable?
A. No.
Q. I am entering into partnership business with my friend already there firm is working for many years I will be introduced as a new partner. My question is will I be liable for any debts which are on the firm before I entered?
A. Section 31 of the Partnership Act, 1932 provides that an incoming partner does not become liable to the creditors of the firm for anything done before he became a partner. He may, however, by an express agreement entered into at the time of admission, become liable to such debts. The operation on the account should not be stopped at the time of new admission, but a fresh mandate or partnership letter, duly signed by all the partners, should be obtained to cover the future operations on the account. In case the account has a debit balance, and the new partner has not got agreed to accept the debit balance of the old partners, the operation on the account should be stopped forthwith.
Q. Is partnership law is different from province to province in Pakistan?
A. Partnership in Pakistan is governed by Partnership Act, 1932 which extends to the whole of Pakistan.
Q. Do I need permission to conduct business in Karachi when I already registered my firm in Lahore?
A. No you can open office anywhere in Pakistan.
Q. My partner is taking too high of a salary. What can I do in accordance with law?
A. It depends on partnership agreement what does it say? Absent in agreement then partners cannot take any salary for their services, they must take profits from the partnership. Unless the agreement says otherwise, all partners are entitled to equal share in the profit.
Q. Are all partners in a partnership are personally liable?
A. Yes all the partners are personally liable for all business obligations and debts jointly and severally. Please contact Mumtaz & Associates law firm for further details & professional business & legal consulting.
You may contact Mumtaz & Associates if you need any legal advise related to Partnerships.
Disclaimer: The information available above is not intended to be comprehensive, and many details which may be relevant to particular circumstances have been omitted. Accordingly, it should not be regarded as being complete source of partnership law information, and web users are advised to seek independent professional advice before acting on anything contained herein. Mumtaz & Associates will not take any kind of responsibility for the consequences of errors or omissions.
Q. What is Power of Attorney?
A. Power of Attorney is a legal instrument/document by which another person is authorized by the maker to act on his behalf.
Q. What is the difference between “General Power of Attorney” and “Special Power of Attorney”?
A. In General Power of Attorney power is given to the attorney to do more than one act, while in Special Power of Attorney power is given to do only one act.
Q. When would a General Power of Attorney gets cancelled?
A. General Power of Attorney gets cancelled on the death of the Principal or Attorney or when principal cancels it.
Q. Is photocopy of power of attorney is as authentic as original?
A. No. Photocopy produced in the absence of an original will not be taken into consideration.
Q. Can I appoint more than one person as Attorney through a single deed in Power of Attorney?
A. Yes.
Q. Two attorneys were appointed to act jointly, one dies, can the other act alone?
A. Where two attorneys were appointed to act jointly and one of them dies, the survivor cannot act alone.
Q. Does a Power of Attorney require attestation by witnesses?
A. Yes, Power of Attorney to be attested by witnesses.
Q. Can an attorney be fired?
A. Yes, the Principal may revoke or fire Attorney any time.
Q. Can an Attorney is compensated for his/her work?
A. Yes, if so agreed by the Principal and Attorney.
Q. Can an attorney be held liable for his/her actions?
A. Yes, but only if he/she acts with willful misconduct or gross negligence.
Q. My uncle is mentally incapacitated; can he create a Power of Attorney?
A. A mentally incapacitated person cannot create a power of attorney he must know and understand what he is doing.
Q. How do I select an agent for a Power of Attorney?
A. You should choose someone whom you trust fully. He/she can be your family member or a friend. Certainly, you should never give a power of attorney to someone you do not trust fully.
Q. Can a company (private or public limited) grant Power of Attorney?
A. Yes, as company is a legal person, and if authorized by Memorandum and Articles of Association can grant power of attorney.
Q. What are the precautions one must take when giving a general power of attorney?
A. Whenever power of attorney is given by you, he should be trustworthy person. Power of attorney is almost like signing a blank cheque and should be given only where it is absolutely necessary and there is no alternative.
Q. I gave a Power of Attorney to my relative, can I still make any decision for myself?
A. The attorney is only your representative if you intend to do anything yourself you are fully competent for the same, even there is an attorney appointed by you.
Q. Is attorney answerable to Principal?
A. Yes, attorney/agent is answerable to principal.
Q. What does Irrevocable Power of Attorney mean?
A. If the Power of Attorney is executed for consideration then it cannot be unilaterally revoked.
Q. Can all Power of Attorneys be revoked?
A. No, only those which are without consideration.
Mumtaz & Associates provides services in: Registration of Power of Attorney in Pakistan, Drafting General Power of Attorney in Pakistan, Drafting Power of Attorney for partnership firm in Pakistan, Drafting General Power of Attorney for a company to its agent in Pakistan, Drafting of Special Power of Attorney in Tax proceedings in Pakistan, Drafting of Special Power of Attorney to execute sale deed in Pakistan, Drafting of Power of Attorney to present documents for registration in Pakistan, Drafting of Power of Attorney for executing a sale deed and for getting the same registered in Pakistan, Drafting of Special Power of Attorney in favour of two persons to execute sale deed in Pakistan, Drafting of Power of Attorney for a court case in Pakistan, Replacement of Attorney in Pakistan, Drafting of Revocation of the Power of Attorney in Pakistan, Drafting of Irrevocable Power of Attorney in Pakistan, Power of Attorney for sale of property in Pakistan, Abuse of Power of Attorney in Pakistan.
You can contact Mumtaz & Associates for detailed consultancy and advice regarding Power of Attorney.
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Frequently Asked Questions on Single Member Company in Pakistan:
Q. Can Single Member Company be converted into private company?
A. Yes, a single member company can be converted into a private company on increase of the number of its members/directors to more than one. A private company having two or more members can become a single member company by passing a special resolution for change of its status and by making necessary alteration in its articles and obtaining approval from the Securities & Exchange Commission of Pakistan.
Q. Can single member company issue shares to public?
A. No, single member company cannot issue invitation to the public to subscribe for any share of the company.
Q. Can sole director in single member company act as secretary?
A. Sole director cannot be the secretary in the Single Member Company.
Q. I want to wind up single member company what procedure to follow?
A. The company shall follow, in case of its winding up, the relevant provisions of the Companies Ordinance, 1984.
Q. Is it mandatory in single member company to appoint nominee director?
A. The single member shall nominate two individuals, one of whom shall become nominee director in case of death of single member and the other shall become alternate nominee director to work as nominee director in case of non-availability of the nominee director.
Q. What is the pattern and style of the name of a single member company?
A. “XYZ (SMC-Private) Limited” is the pattern and style of the name of a single member company.
Q. Can single member company increase its share capital?
A. Yes, single member company can increase its share capital after complying with the requirements of law.
Q. Can one person be the sole director in a non-profit company incorporated under section 42 of the Company law in Pakistan?
A. Non-profit companies are formed under section 42 of the Companies Ordinance, 1984 and require having at least three directors.
Q. Do single member companies have to keep accounting records?
A. Yes. Single member companies must keep proper accounting records according to law and to file the audited accounts with Securities & Exchange Commission of Pakistan if the paid-up capital is 7.5 million or more.
Q. Can foreigner incorporate a single member company under company’s law in Pakistan?
A. Yes, if he is resident of Pakistan.
Mumtaz & Associates can advice you on registration of Single-Member Company and other related matters to individuals, firms, companies both local and foreign. You can contact Mumtaz & Associates for detailed consultancy and advice.
Succession Certificate & Suit for Declaration
Frequently Asked Questions (FAQs) about Succession Certificate & Suit for Declaration:
Q. What is meant by succession certificate?
A. This certificate is issued by a court of competent jurisdiction, which establishes the ownership of the legal heirs regarding movable assets i.e. deposits in the banks, shares, certificates and bonds, stocks, insurance amount etc. issued by the government or the financial institutions etc.
Q. Is Succession Act, 1925 applicable to whole of Islamic Republic of Pakistan?
A. Yes, Succession Act, 1925 is applicable to whole of Pakistan.
Q. What are the legal requirements to obtain succession certificate in Pakistan?
A. You need certified death certificate of the deceased along with detail of subject assets, computer national identity card of the legal heirs filing the application and to furnish requisite surety.
Q. Is security bond is required by the court before issuance of succession certificate?
A. Yes, before the issuance of succession certificate security bond is required to be submitted to the satisfaction of the court by the legal heirs.
Q. What procedure should legal heir/s adopt to get possession of money in the bank of deceased in Pakistan?
A. For getting possession of money in the bank, shares, insurance amount, stocks, bonds etc, a succession certificate is required under Succession Act, 1925.
Q. How long should it take to obtain the Succession certificate from the court?
A. It depends from case to case; however, estimated time for getting succession certificate in case of no opposition from public is between two to three months.
Q. Is there any time limit within which succession certificate must be obtained?
A. There is no time limit for applying to a court for issuance of succession certificate.
Q. Is succession certificate necessary as I am the only child of my deceased parents?
A. Yes, it is necessary.
Q. If a shareholder who held shares in his sole name dies how his legal heir/s can get the shares transmitted in their names?
A. After obtaining a succession certificate they will apply to the company who held shares of the deceased, a request letter for transmission of shares along with copy of succession certificate, death certificate, shares certificates in original, computer national identity card and other requisite information demanded by the said company, for transmission of shares.
Q. Can court grant more than one succession certificate to the same legal heir/s?
A. Yes, court can grant more than one certificate to the same legal heir/s?
Q. On what grounds succession certificate can be cancelled /revoked in Pakistan?
A. Succession certificate granted can be revoked if the proceedings to obtain certificate were defective, that the certificate was obtained fraudulently by making of a false suggestion or by the concealment from the court of something material to the case, that the certificate was obtained by means of an untrue allegation of a fact essential in point of law to justify the grant thereof, though such allegation was made in ignorance or inadvertently, that the certificate has become useless and inoperative through circumstances or that a decree or order made by a competent court in a suit or other proceeding with respect to effects comprising debts or securities specified in the certificate renders in proper that the certificate should be revoked.
Q. For movable property we need to obtain succession certificate, for immovable property what should we need?
A. You have to obtain a declaratory decree in favour of legal heirs from the court of competent jurisdiction.
Q. For substitution of name/s of legal heir/s of deceased person in the record of ownership/proprietorship what we need?
A. In case of immovable property legal heirs have to obtain a declaratory decree from the court of competent jurisdiction and in case of movable property a succession certificate is required.
Q. Under what law we file suit for declaration in Pakistan?
A. Suit for declaration is filed under Specific Relief Act, 1877 in Pakistan.
Q. What are the legal requirements for filing Suit for Declaration?
A. For filing of suit for declaration certified copy of death certificate of the deceased is required along with title document of subject property and computer national identity card of the legal heirs, filing the suit.
Q. What is the estimated time for getting decree in declaration suit?
A. It depends from case to case, however, in case of no opposition from public, estimated time is between two to four months.
Q. Can names of the legal heirs be substituted in the relevant records kept or maintained by the concerned departments?
A. Yes, once the court makes declaration in favour of legal heirs their names can be substituted as title holder in the record of relevant regulatory authority/department.
Q. Is there any time limit for applying to a court for a decree of declaration of legal heirs?
A. There is no time limit for applying to a court for obtaining declaratory decree.
Q: Where the Application has to be made?
A. The Application is to be made in the civil court, where the assets are situated and present.
You can contact Mumtaz & Associates for detailed consulting & advice.
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice.
Trademark Registration & Infringement
Disclaimer: This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice.
Q. What is the law that regulates trademarks in Pakistan?
A. In Pakistan, registration and protection of trademarks is regulated under the Trademarks Ordinance, 2001 and it extends to whole of Pakistan.
Q. What is Trademark?
A. A Trademark is a mark used for the purposes of differentiating goods or services of one business from the goods or services of others. Any unique words, letters, numerals, drawings, pictures, shapes, colours, logotypes, labels or combinations used to distinguish goods or services may be considered as trademark.
Q. What is the difference between trade name and trade mark?
A. Trade name is the full name of your business, such as: “Syed Bhais (Pvt.) Limited” and it identifies your company or firm. A trademark, however, is the sign that distinguishes the product of your company. A company may have various trademarks. For instance Syed Bhais Private Limited sells its products under the trademark “Syed Bhais” and logo “SB”.
Q. My company’s name is Syed Bhais (Pvt.) Limited incorporated with Securities & Exchange Commission of Pakistan, is the company’s name will automatically be protected as a trademark?
A. No, by registering your business and its trade name with the Securities & Exchange Commission of Pakistan your company’s name will not be protected as a trademark. A trade name is the full name of your business i.e. “Syed Bhais Private Limited” and it identifies your company. A trademark is the sign that distinguishes the product of your company.
Q. What is meant by Coined word?
A. Coined words are invented words, the words which do not have any meaning and have advantage of protection easily. As in the name of “Syed Bhais” which is a renowned brand name, coined word is “Bhais” which is an invented word and do not have any meaning.
Q. Who is authorized to apply for trademark registration?
A. Any person who intends to use a trademark can apply for registration. It can be individual, firm, company or organization.
Q. Is it compulsory to register a company’s trademark?
A. It is not mandatory but highly advisable.
Q. What is a trademark/brand name search? Is it necessary to conduct search before applying for registration?
A. It is not necessary but advisable, to make sure that the trademark you intend to use or a similar one is not already registered by anyone.
Q. For how long registered trademark is protected or what is the duration of registration?
A. From filing of the date trademark is registered for ten years, which can be renewed after every ten years.
Q. What are service marks?
A. Service mark is a name given to trademarks registered to distinguish the services of an enterprise from those of others. According to Trademarks Ordinance 2001, service means, service of any description which is made available to users or potential user and includes the provision for services in connection with business of any industrial or commercial nature, and without limitation, includes banking. Retailing communication including telecommunication, education, law, financing, insurance, chit funds, real estate, transport, storage, material treatment, processing, supply of goods including electrical or other energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of news or information and advertising.
Q. What are collective marks?
A. According to section 82(1) of the Trademark Ordinance, 2001 a collective mark shall be a mark distinguishing the goods or services of members of the association which is the proprietor of the mark from those of other undertakings.
Q. What are certification marks?
A. According to Trademark Ordinance, 2001, a certification mark shall be a mark indicating that the goods or services in connection with which it is used are certified by the proprietor of the mark in respect of origin, mode of manufacture of goods or performance of services, quality, accuracy or other characteristics.
Q. Are advertising slogans can be registered as trademark?
A. Yes, advertising slogans can be registered as trademark.
Q. Can I licencse my trademark to other enterprises?
A. Yes, trademarks can be licensed. In such case you will retain ownership and agrees to the use of the trademark by one or more enterprises.
Q. Can I sell trademark of my company to another company?
A. Yes, trademark can be sold independently from the business; a registered trademark is a personal property.
Q. If an individual or business enterprise portrays their trademark is registered while in reality it is not, is this an offense?
A. Yes, this is an offense.
Q. What is the penalty for applying false trade description?
A. He will be punished with imprisonment of either description for a term which shall not be less than three months but which may extend to two years, or with fine which shall not be less than fifty thousand rupees, or with both and on subsequent conviction penalty will be enhanced.
Q. For my business should I start using the mark after filing or must I wait for registration to use the trademark?
A. You can start using a mark irrespective of filing or registration.
Q. For many years I am using a mark for my business, still trademark registration is necessary?
A. In case of dispute prior use is generally sufficient for claiming rights over a given trademark, however, trademark registration will provide legal certainty on exclusive rights to the use of a trademark. It is highly advisable to register a trademark.
Q. What is trademark infringement?
A. A person shall infringe a registered a registered trademark if such person uses in the course of trade a mark which is identical with the trademark in relation to goods or services which are identical with those for which it is registered.
Q. When a trademark is not infringed?
A. A person shall not infringe a registered trademark when used in good faith. Where registration of a trademark is subject to disclaimer, a person shall not infringe the trademark by using disclaimed part of the trademark.
Q. What action is available in case of infringement of trademark?
A. Civil and criminal remedies are available in case of infringement of trademark rights. Infringement of a registered trademark shall be actionable by the proprietor of the trade mark by way of damages, injunctions, accounts or otherwise shall be available to the proprietor of the trademark as is available in respect of the infringement of any property right.
Q. In case of importation of infringing goods, material or articles what remedies are available?
A. Infringing goods, material or articles may be treated as prohibited, the proprietor of the registered trade mark may give notice in writing to the collector of Customs that he is the proprietor of the registered trade mark, that infringing goods, material, article, bear false indications as to their source or the identity of their manufacture are expected to arrive in Pakistan from outside Pakistan and that they are subject to the control of the customs authorities under the Customs Act, 1969 (IV of 1969): and he request s the Collector of Customs to treat such goods as prohibited.
Q. I am using trademark since long but not registered are there any rights for unregistered mark?
A. If your mark is not registered you cannot file an action for infringement. An unregistered mark will have only a right of passing off. To exercise the right of passing off you have to establish with evidence that your mark is being used and which has a reputation and goodwill.
Q. I am not using trademark can it be cancelled on non-use?
A. Yes, it can be cancelled on non-use.
Q. Whether foreign proprietors, business establishments can apply for registration of their trademark in Pakistan?
A. Yes, they can apply for registration in Pakistan.
Q. To which International Trademark Treaties, Pakistan is a signatory?
A. Pakistan is signatory to Paris Convention for the Protection of Industrial Property and Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).
Mumtaz & Associates provides services in: Trade Mark Registration in Pakistan, Brand Name Registration in Pakistan, Logo Registration in Pakistan, Registration of Pharmaceutical Brands in Pakistan, Trademark Search in Pakistan, Trademark Litigation Services in Pakistan, Trademark Monitor Service in Pakistan, Trademark Passing Off cases in Pakistan, Textile and Textile goods in Pakistan, Drafting Trademark License and Franchise Agreements.
Contact us for further professional legal consulting & advice.
© Copyright 2011 by Mumtaz & Associates. All rights reserved.
Family laws in Pakistan may fall under numerous laws e.g. Guardian & Wards Act, Muslim Family Laws Ordinance, etc.
Following matters would come under jurisdiction of family laws in Pakistan:
- Marriage
- Divorce / Talak / Talaq / طلاق
- Khula
- Child Custody
- etc.
Following forms of business in Pakistan are mainly practiced:
a. Non-Registered: Sole Proprietorship
b. Non-Registered: Partnership
c. Private Limited: Single-Member Company (only one Director)
d. Private Limited Company (more than one Directors)
e. Foreign Company Incorporation
f. Non-profit company (NPO, NGO or charitable organization)
Company in Pakistan:
A Company in Pakistan is a legal entity formed under the Companies Ordinance, 1984. It can have share capital or can be formed without share capital. Any three or more persons associated for any lawful purpose may, by subscribing their names to a memorandum of association and complying with the requirements of Companies Ordinance, 1984 in respect of registration, form a public company and any one or more persons so associated may, in like manner, form a private company. A company formed under Companies Ordinance, 1984 in Pakistan may be a company with or without limited liability, that is to say, a Company Limited by Shares, a Company Limited by Guarantee and an Unlimited Company
Company Limited by Shares in Pakistan:
The liabilities of its members in a Company Limited by Shares are limited to the extent of their shares in the paid-up capital of the company. These companies may further be classified as Public Limited Companies and Private Limited Companies.
Public Limited Companies in Pakistan can be formed by at least three persons by subscribing their names to the ‘Memorandum and Articles of Association of the company. The word ‘Limited’ is used as the last word of its name.
Private Limited Companies in Pakistan as above said may be formed by one or more persons by subscribing their names to the ‘Memorandum and Articles of Association’ of the company. If only one member forms a Private Company in Pakistan, it is called a Single Member Company.
Company Limited by Guarantee in Pakistan:
Company Limited by Guarantee in Pakistan means a company having the liability of its members limited by memorandum to such amounts as the members may respectively undertake to contribute to the assets of the company in the event of its winding up. A Company Limited by Guarantee is usually formed on a ‘non profit basis’. Companies Limited by Guarantee in Pakistan use the words “(Guarantee) Limited” as the last words of their names.
Unlimited Company in Pakistan:
Unlimited Company means a company having unlimited liability of its members.
Mumtaz & Associates offers undermentioned services in the field of companies incorporation in Pakistan.
- Selection of type of the company.
- Selection of name for the proposed company.
- Obtaining ‘name availability’ from Registrar of Securities & Exchange Commission of Pakistan.
- Draft and execute Memorandum & Articles of Association and other documents.
- Payment of fees.
- Represent with Securities & Exchange Commission of Pakistan for any reservations or comments he may have.
- Procure incorporation certificate from Securities & Exchange Commission of Pakistan.
- Subscribe to the agreed share capital of the company.
- Preparation and filing of Prospectus (in case of public companies).
- Obtaining commencement of business certificate for public companies.
Please Contact Us for further consultation.
Criminal Law: Dishonoring of Cheque
A dishonoured cheque is one, which when presented is refused payment by the bank because of insufficient funds or because it is not in order, dishonestly issuing a cheque is a criminal offence in Pakistan. Dishonestly issuing a cheque is governed by section 489-F of the Pakistan Penal Code, 1860. The said section reads as follows:
489-F Dishonestly issuing a cheque: Whoever dishonestly issues a cheque towards re-payment of a loan or fulfillment of an obligation which is dishonoured on presentation shall be punishable with imprisonment which may extend to three years and with fine unless he can establish, for which the burden of proof shall rest on him, that he had made arrangements with his bank to ensure that the cheque would be honoured and that the bank was at fault in not honouring the cheque.
The offence under this section is cognizable by police, non-bailable and compoundable.
Please note each case has to be seen on its own facts and circumstances.
Mumtaz & Associates can advice you on cheque bouncing, recovery of debt, recovery of money, legal notice for cheque dishnonour, lodging of First Information Report (F.I.R.) and other related matters to individuals, firms, companies both local and foreign. You can contact Mumtaz & Associates for detailed consultancy and advice.
NPO & NGO Registration in Pakistan
Mumtaz & Associates provides comprehensive legal services to non-profit organizations and associations in the Islamic Republic of Pakistan. We provide services to businesses, institutions, educational, social, religious, individuals and families seeking to accomplish non-profit objectives. In Pakistan there are numbers of laws for registration of non-profit organizations including the prominent Acts and Ordinances as The Societies Registration Act, 1860, The Trusts Act, 1882, Registration of non-profit Companies under section 42 of the Companies Ordinance, 1984, The Co-operative Societies Act, 1925, Trade Organisations Ordinance, 2007, Non-Profit Public Benefit Organisations (Governance and Support) Act, 2003, Mussalman Waqf Act, 1923, Charitable Endowments Act, 1923.
Mumtaz & Associates offers a broad spectrum of legal services to NPO’s in Pakistan including following:
- Registration of Non-profit Organizations/Non Governmental Organisations
- Preparation of documents
- Advising non-profit board members of their duties & responsibilities
- Advising individuals and entities with respect to charitable giving matters
- Advising NPO’s in obtaining tax exemptions
- Representing & defending all types of NPO’s in mediation, arbitration, litigation & similar matters
- Advising on real estate transactions, environmental etc. issues
- Advice NGO’s in their fund raising efforts
- Advising on Intellectual property issues, applying for and protecting copyrights or trademarks and obtaining licenses to use copyrighted materials
- Drafting of employment agreements
- Dissolution of NPOs/NGOs
You may also want to review details pertaining to:
- FAQs: Registration of a non-profit (NPO / NGO) under Societies Act, 1860
- FAQs: Registration of a non-profit (NPO / NGO) under Companies Ordinance, 1984
- Laws related to NGO’s/NPO’s in Pakistan
Please contact Mumtaz & Associates for advise on which type of NGO / NPO best suites your needs.
Under the normal circumstances for the purposes of legal process or to perform the legal duties or to transact in any other manner, person himself and if he is not in a position to do so may authorize anybody to act on his behalf. In first instance the person who gives right to the other to perform duty on his behalf is called “Principal” and the person to whom the authority is given is called “Attorney”. The Principal may authorize the Attorney not to pursue his cases only but also to compromise or settle the matters on his behalf. In these circumstances all the acts performed by the Attorney will be deemed to be performed by the Principal who will be responsible for the acts done by the Attorney as he has done them himself.
There are two kinds of Power of Attorneys: General Power of Attorney and Special Power of Attorney.
General Power of Attorney means that Attorney may perform more than one job on behalf of the Principal and all his acts will be binding on the Principal as done by him and under his authority.
Special Power of Attorney is for only a specific purpose which is explained in that deed of Special Power of Attorney.
It is relevant to mention here that power of attorney either General or Special given by the Principal to the Attorney must be in writing and it cannot be given orally. If Power of Attorney is for any immovable property, sale or for mortgage then it should be registered under section 17 of the Registration Act, 1908.
Power of Attorney should be attested: All the documents written as a Power of Attorney should be authenticated by a Notary Public, any Court, Judge, Magistrate, Pakistan Consul or Vice-Consul, or representative appointed by the Federal Government, and then it will be presumed correct.
Necessary requirements of Power of Attorney: Every Pakistani citizen who is a major, adult and according to law is competent to enter into a contract whether resides in Pakistan or outside Pakistan may authorize any other person through power of attorney to act on his behalf. If power of attorney is executed outside the country then Pakistani Embassy or consulate’s authorized officer will verify it and if the power of attorney relates to transfer of property then it should be registered in Pakistan with the concerned registrar.
Power of Attorney in Civil Cases: Civil cases can be pursued through power of attorney i.e. to appear in the court, to move application and to proceed in the matter. In civil cases the Attorney can do each and every act on behalf of the Principal. Service of summons/notices of the court on the Attorney will be presumed to be service on the Principal. For all these matters no court will allow the Attorney to act on behalf of the Principal unless Power of Attorney is there.
Civil and Criminal liabilities of Principal and Attorney: Civil liability of Principal; if in performance of acts according to the power of attorney the third party suffers a loss then the Principal will be responsible subject to authorizing for the same act in the power of attorney. Civil liability of Attorney; in case of any action for which he is not authorized he will be responsible for the losses occurred to the third party on the basis of such act.
Criminal liability of Principal and Attorney: Criminal liability of Principal; under normal circumstances the Principal will not be responsible for the criminal acts of the Attorney. Criminal responsibility of the Attorney; if Attorney is found guilty of breach of trust then he can be preceded under section 406 and 409 of Pakistan Penal Code and be punished.
Cancellation of Power of Attorney: The Principal can cancel the Power of Attorney whether General or Special at any time or in case of death of Attorney or the Principal, it will be cancelled automatically. In the first instance, concerned Registrar where Power of Attorney is registered will cancel it and it will also be published in a newspaper. Power of Attorney will also be cancelled if the job/assignment for which it was given is completed.
You can contact Mumtaz & Associates for detailed consultancy and advice relating to Power of Attorney.
Mumtaz & Associates is involved in providing services and assistance to our valued clients in buying and selling of bothmovable and immovable properties & real estate in Pakistan. We also provide our services to facilitate the required permissions, etc. for setting up various industries, factories, commercial complexes, industrial and residential estates, etc. across Pakistan.
Mumtaz & Associates offers a broad spectrum of services in property & real estate in Pakistan including following:
- Investigate & verify title documents of the property
- Investigate & verify mutation in favor of the vendor
- Obtain a fresh copy of Fard (فرد) from relevant sub-registrar
- Obtain a certified copy of Aks-Shajra (map)
- Obtain a certified copy of Tatima/Supplementary Map of the property
- Demarcation details
- Drafting of the documents
- Registration of conveyance deed
- Transfer of title
- Entries in relevant government record
- Obtain a NOC, if necessary
- Verification of the Power of Attorney of the vendor, if any
- Verification of other documents e.g lease deeds, mortgage deeds, gift deeds etc., if any
Please do not hesitate to contact us for any property or real-estate related legal services in Pakistan.
Intellectual Property Rights are those rights which refers to the creations of the human mind such as artistic work; musical work; literary work; inventions; symbols; names; images; designs use in commerce; copyrights; trademarks; patents and related rights. These rights give exclusive right to the creators of such work to use, perform, transfer or sell these rights. On the same hand if any individual, firm, company etc. uses these rights without permission or authority of the owners of theses rights then they have the right to initiate court proceedings against the infringers by way of damages, injunctions and accounts.
Mumtaz & Associates specializes in Intellectual Property Laws. We advise on the protection and registration of trademarks, copyrights, patents, industrial designs, geographical indications, Internet domain names, etc. in Pakistan.
Mumtaz & Associates also advises on information and technology transfers and drafts and negotiates licensing and franchising agreements.
Please Contact Us for detailed consultation.
Company Registration: Single-Member Company
Any person may form a single member company in Pakistan. Single Member Company or “SMC” means a private company which has only one member/director and will avail privileges of limiting the liability. Subject to certain modifications, all the provisions of the companies-law-pakistan-company-registration-pakistan/">Companies Ordinance, 1984 which apply to private companies limited by shares will apply to single member companies. The introduction of the concept of a single member company has facilitated sole proprietorships to obtain corporate status, giving them the privilege to limit the liability of their proprietor. All the shares are vested with single member/director, however, person is required to nominate two individuals, one of whom shall become nominee director in case of death of the single member/director and the other shall become alternate nominee director to work as nominee director in case of non-availability of the nominee director and also Single-Member Company is required to appoint a company secretary.
Mumtaz & Associates have dealt with various registration of single member companies in Pakistan like health and care related single member companies, real estate single member companies, garments related single member companies, furniture related single member companies , electronics related single member companies, IT related companies, service oriented single member companies, travel and tour related single member companies, construction related single member companies , manufacturing related single member Companies. jewellery related services companies, home decoration related companies, event management & wedding decoration related single member companies.
Mumtaz & Associates can advice you on registration of Single-Member Company and other related matters to individuals, firms, companies both local and foreign. You can contact us for detailed consultancy and advice.
Company Formation: Sole Proprietorship
In a Sole Proprietorship registration-pakistan/">business in Pakistan, an individual on his/her own account carries out the business or profession. The business assets of the sole proprietor are legally treated as his own. No formal procedure or formality is required for setting up a sole proprietary concern in Pakistan nor prior registration of it is required from any government authority or department.
Please Contact Us for further consultation.
Company Formation: Partnership
A Partnership in Pakistan is a business entered into by a formal agreement between two or more persons or corporations carrying on a business in common. The capital for a Partnership is provided by the partners who are liable for the total debts of the firms and who share the profits and losses of the business concern according to the terms of the partnership agreement.
Partnership in Pakistan (other than banking companies) are generally limited in size to twenty partners. The interest of a partner is transferable only with the prior consent of the other partner(s). However, a partner’s right to a share of the partnership income may be received in trust for another person.
For taxation purposes in Pakistan, partnerships are classified into:
Registered firms and Unregistered firms.
The income of the registered firm is subject to super tax before distribution to the partners. Also the individual income of the partners is subject to income tax at the usual rates.
For unregistered firms, income tax is levied on the firm’s income and the partners are not liable to pay tax on the shares of profit received from the unregistered firm(s).
- Mumtaz & Associates offers undermentioned services in the field of Partnership in Pakistan.
- Consultation on a business name for partnership
- Search availability of partnership business name
- Drafting of partnership agreement
- Registration of partnership
- Drafting of deed of dissolution of partnership
- Registration of deed of dissolution of partnership
You can also Contact Us for detailed consultation regarding business setup or company registration in Pakistan.
Opening a Hotel or Restaurant
The Pakistan Hotels and Restaurants Act, 1976 and The Pakistan Hotels and Restaurants Rules, 1977 is the law which deals with the registration and control of the hotels and restaurants. Owner of every restaurant or hotel shall from the opening apply to the controller for registration, without first getting the hotel or restaurant registered and obtaining a license under the Act no owner, (individual, firm, company) is allowed to carry on his business. For registration of a restaurant, the owner of the restaurant is required to conform to the standard of health, hygiene,comfort, medical certificates of staffs in good health, its building is structurally safe and to fulfill other requirements in accordance with law. After getting registration the owner of the restaurant is required to obtain a license from the controller. Normally, registration and license are issued at the same time. A license granted shall remain in force for a period of one year and is renewable every year on payment of prescribed government fee.
Mumtaz & Associates offers services in obtaining registration and license to open a hotel or restaurant and also provides information to help open and operate business including under mentioned services:
- Choosing the hotel or restaurant entity, should it be sole proprietorship, firm or company.
- Drafting lease agreement.
- Trademark registration for the name of hotel or restaurant.
- Drafting of employment contract.
- Drafting of confidentiality agreement.
- Drafting and negotiating all agreements for the sale and purchase of hotels or restaurants.
- Drafting and negotiating franchise agreements.
- All litigation arising out of vendor, partner, employee and customer disputes.
Please Contact Us for further consultation.
Under mentioned brief information is the pre-requisite for the incorporation/registration of Private Security Company in Pakistan.There are certain businesses before commencing in Pakistan as per law are required to take prior permission from the concerned departments. As such a company which will be providing security services, permission from Interior Ministry is mandatory.
Private Security Companies in Pakistan are operating under an administrative order issued by the Ministry of interior in 1988.
Private Security Companies are required to be register themselves with the Securities & Exchange Commission of Pakistan i.e. SECP under the Companies Ordinance, 1984.
Individuals /group of individuals who intend to establish a private security company may approach the Security and Exchange Commission of Pakistan at Islamabad / Provincial capitals. After meeting the formalities which are required by law for the incorporation of the company Securities & Exchange Commission will register the company.
After registration, nine complete sets of documents are sent by the Securities & Exchange Commission to Ministry of interior for grant of NOC, along with the bio data of subscribers, four attested photographs of each subscribers and financial position / bank statement of the subscribers (Aggregate wealth should not be less than 1.5 million at least). The process of issuance of NOC by Ministry of Interior normally takes three to four months, it can also be extended.
For operation in the Province the company is required to approach the concerned Home Secretary for grant of license for operation in the respective jurisdiction.
The affairs of the Private Security Companies are regulated as per Ordinance and rules framed by the Provinces. The Private Security Companies shall function in the Provinces under Provincial Ordinance/rules.
The uniform for the guards of Private Security Companies may nor resemble with the uniforms of Pakistan Armed Forces and other Law enforcement agencies.
Disclaimer:
The information on this page is not intended to be comprehensive, and many details which may be relevant to particular circumstances have been omitted. These brief notes are for general guidance only and should not be taken as a substitute for a thorough and professional legal advice. Accordingly it should not be regarded as being a complete source of information. The brief over-view explains in very general terms incorporating Private Security Agency Companies in Pakistan.
Copyright is a form of protection provided to the authors of original works of authorship including literary, dramatic, musical, artistic, cinematographic, recording and certain other intellectual works.
Mumtaz & Associates offers undermentioned services in the field of Copyright:
- Registration, filing and prosecuting copyright applications
- Conducting copyright searches
- Copyright Oppositions
- Drafting of license agreements
- Infringement proceedings
- Investigations and raids
- Litigation
Please Contact Us for further consultation.
A patent for an invention is grant of exclusive rights to make, use and sell the invention for a limited period of 20 years. The patent grant excludes others from making, using, or selling the invention. Patent protection does not start until the actual grant of a patent. A patent cannot be obtained on a mere idea or suggestion.
Mumtaz & Associates offers undermentioned services in the field of Patent:
- Patent Prosecution, preparing and filing patent applications
- Patent searches
- Oppositions
- Patent Monitoring
- Drafting and filing petitions for extension of a term of patent
- Restoration applicants for lapsed patents
- Licensing
- Registration of assignments, transmissions, etc.
- Infringement Actions
Please Contact Us for detailed consultation.
A trademark is a distinctive sign or indication of some kind which includes in particular a device, brand, heading, label, ticket, name including personal name, signature, word, letter, numeral, figurative element, colour, sound or any combination thereof which is used by an individual, firm, company, business organization etc. to identify the source of its products and services to consumers and to distinguish its products and services from those of other entities.
Mumtaz & Associates is providing undermentioned services for the protection and registration of trademarks in Pakistan:
- Advise on the registrability of Trademarks
- Trademark search before filing of application. To avoid conflicts with earlier trademarks it is advisable to conduct trademark searches before the trademarks registry if any similar mark is on the record or not.
- Filing and prosecuting trademarks, service marks, collective marks, certification marks applications before the Trade Marks Registry.
- Opposition Procedure, if any, trademark opposed
- Conducting searches to detect opposing Trademarks and applications
- File and Prosecute Slogan Registration applications
- File Trade Names publication requests
- Renew Registrations
- Investigate the status of registrations and the scope of protection
- Investigating Trademark infringements
- Analyze and advise on Trademark infringement
- Enforce Trademark rights against infringers
- Drafting of license agreements
Mumtaz & Associates also provides complete range of legal services in Trademarks infringement including representation before courts in Trademark disputes.
Please Contact Us for further consultation.
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