Are you planning to start a business in Pakistan? Great! But wait; do you know what types of business in Pakistan are available to you? Knowing what are the types (forms to be specific) of business in Pakistan is important to make a decision for your business. Choosing the right type of business will impact your future.
Depending on the size, nature, and ownership structure of a business, different types of legal entities can be established in Pakistan.
Let’s look at the types of business that are allowed in Pakistan from a structural point of view. Each type has its benefits and drawbacks.
On search, you may come across at least five major types of business;
Limited Liability Partnership (LLP)
Company (companies are also of different types)
A sole proprietorship is the simplest and most common type of business in Pakistan. It is a business entity in which you as the owner will operate the business on your own. You will have full control over the business and will be responsible for all its debts and obligations including any tax obligations. And of course, all the profits will also be for you alone.