Starting a business in Pakistan is more than launching a service or opening your shop doors it’s about building a lawful, scalable foundation. Whether you run a retail outlet, a salon, a distribution center, or a fitness studio, there are two essential legal steps you must complete:
- Obtaining a valid trade license from your local authority
- Registering your business name (and publishing it, when required)
This updated 2025 guide outlines every step of these processes, including documentation, timelines, regional requirements, and common mistakes to avoid.
Understanding the Purpose of a Trade License and Its Importance for Your Business
A trade license is an official permit issued by your local municipal authority. It legally authorizes your business to operate from a physical location and ensures your activities follow local regulatory standards regarding health, safety, and zoning.
Running a business without a trade license can result in heavy fines, shutdown notices, or legal action from city authorities.
Is a Trade License Required for All Businesses in Pakistan?
Yes. Any commercial activity conducted from a physical premises including stores, workshops, warehouses, and cafes must be licensed through the applicable city council or district authority based on your location. This ensures your business is recognized and operating within legal guidelines.
What is a Business Name and How Is It Registered?
Your business name represents how your identity appears in the market it’s how clients, regulators, partners, and the public recognize you. It’s not just a branding element; it’s a part of your company’s public and regulatory presence.
In Pakistan, you are legally required to register your business name with the Securities and Exchange Commission of Pakistan (SECP), particularly if forming a corporate entity. You may also register with the Federal Board of Revenue (FBR) for tax purposes depending on your business model.
Registered Company Name vs. Public Trade Name (Doing Business As)
| Registered Company Name | Public Trade Name (Doing Business As) |
|---|---|
| Official name registered with SECP | Used in customer-facing and marketing activities |
| Legally shown on documentation and contracts | Appears on signboards, ads, and packaging |
| Formal approval and legal process required to change | Can be modified relatively easily |
Why Registering and Publishing Your Business Name is Essential
Registering through SECP not only legitimizes your business in Pakistan’s legal system, but also:
- Gives you exclusive rights to the name you’ve chosen
- Prevents other businesses in your line of work or area from using a similar name, reducing confusion and protecting your brand identity
- Increases your credibility with banks, vendors, and customers
In some jurisdictions, a public notice of your name registration is also required. This typically involves publishing an announcement in at least one widely circulated English and Urdu newspaper.
This public notice typically features your legal business name, branding or trade name (if used), business category, and your verified business location or mailing address.
Publishing ensures transparency and helps prevent confusion or misuse of similar business identities within the same locality or sector.
Step-by-Step: How to Obtain a Trade License in Pakistan (2025 Guide)
Step 1: Identify the Right Authority
Each region has its own regulatory body based on location:
- Karachi – District Municipal Corporation (DMC)
- Lahore – Metropolitan Corporation Lahore (MCL)
- Islamabad – Capital Development Authority (CDA)
- Other cities/districts – Local town committee or municipal council
Step 2: Organize Required Documents
The following documents are typically needed:
- CNIC (National Identity Card) copy
- Recent passport-sized photos
- Ownership deed or tenancy agreement
- Utility bills (electricity, gas)
- NOC (if required from building owner or neighbors)
- A clear statement of business activities
Step 3: Submit Your Application
Once your application form is filled, you must attach all necessary documents and proceed to submit them through the appropriate method based on your city’s procedure.
Step 4: Property Inspection
An inspection may be conducted to confirm the physical setup and compliance with local zoning or public health regulations.
Step 5: Pay Fees
Trade license fees vary depending on the business size, type, and location. Once the payment is made, a receipt is issued.
Step 6: Issuance of Trade License
Upon approval of your application and confirmation of fee payment, the city authority will issue your officially recognized trade license. All businesses must keep a copy of this certificate displayed on-site, typically near the entrance or cash counter.
How to Register a Business Name with SECP in 2025
Follow these steps to formally register your business name:
- Go to the SECP eServices Portal
https://eservices.secp.gov.pk - Use the name availability checker to ensure your desired title isn’t already in use.
- Reserve your selected name by completing the provided form online and paying the reservation fee.
- Prepare incorporation documents, including your Articles of Association, Form I, Form 21, and copies of identity documents.
- Submit the application online or through a certified intermediary.
- Receive your certificate of incorporation and legal approval, usually within 2–3 working days.
How to Verify Business Name Availability
You can confirm whether your preferred business name is unique by using the official SECP name availability checker. This tool lets you avoid rejections and spot conflicts early in the registration process.
Does My Business Name Require Official Approval?
Yes. SECP screens all applications. Your name must meet specific legal standards it can’t closely resemble existing businesses, contain prohibited language, or create public confusion.
Estimated Trade License Fees in Major Cities (2025)
| City | Small Business | Medium Business | Warehouse / Complex |
|---|---|---|---|
| Karachi | PKR 3,000 – 8,000 | PKR 9,000 – 12,000 | PKR 20,000 – 25,000 |
| Lahore | PKR 2,500 – 6,000 | PKR 7,000 – 10,000 | PKR 15,000 – 20,000 |
| Islamabad | PKR 3,500 – 10,000 | PKR 8,500 – 13,500 | PKR 20,000 – 30,000 |
The licensing cost is influenced by the size of your business, your business type, operational activities, and the policies specific to your municipal region.
Can You Apply for a Trade License Online in 2025?
Yes, but the level of digital access depends on where you’re based. Some cities now support partial or full online processing, though physical site verification is still essential in many cases.
- Karachi: Apply via the Sindh LGS portal and track your status digitally.
- Lahore: Use the Punjab Business Registration Portal or visit MCL offices.
- Islamabad: CDA offers downloadable forms with a partial online application process.
Common Mistakes to Avoid
- Submitting incomplete or incorrect documentation
- Applying under the wrong authority (wrong jurisdiction)
- Overlooking the newspaper publication requirement (when applicable)
- Choosing a business name too similar to existing companies
- Allowing your trade license to expire by failing to renew on time
Who Must Get a Trade License and Name Registration in Pakistan?
Any business that operates from a physical site must comply, including:
- Grocery stores & minimarts
- Pharmacies & medical outlets
- Clothing & electronics shops
- Beauty salons & barbers
- Restaurants, bakeries & cafés
- Auto workshops & equipment dealers
- Wholesale suppliers & showrooms
- Fitness centers, gyms & studios
- Schools, training centers & IT labs
Even small home-based businesses may need a license if they involve foot traffic or commercial deliveries.
FAQs:
1. Is a trade license necessary for every business?
Yes. All physical businesses must secure a trade license from local authorities.
2. Can I start my business without registering the name?
No. A properly registered name with SECP is essential, especially if you want to open a bank account, deal with suppliers, or trademark your brand.
3. Is newspaper publication still required?
In many jurisdictions, yes. Newspaper publication helps inform the public and prevents duplication of similar business names.
4. Can I register one license for multiple branches?
No, you must obtain a distinct trade license for every individual business site or branch you operate, even if they fall under the same company name.
5. What’s the typical processing time for a trade license?
Trade licenses are generally processed within 12 to 15 working days, depending on your city and the thoroughness of your documents.
6. Is SECP registration enough for online businesses?
If you have no physical presence, you may not need a trade license, but registration with SECP and FBR is still recommended for legal protection and tax compliance.
7. What happens if I don’t register my business name with SECP?
Failure to register your business name means your company does not legally exist under Pakistani law. It can affect your ability to secure contracts, open bank accounts, or seek legal protection if your name is copied by others.
8. What documents are required to apply?
The list usually includes your CNIC, tenancy agreement or property proof, utility bill, photographs, NOC (if required), and filled application form.
9. Can I change my trade name later?
Yes, but it should be done through SECP’s official process, and you must update any local authority records and re-publish the name if required by law.
10. Who can apply for a trade license on behalf of the business?
The business owner, a registered director, or a legally authorized consultant or agent can apply.
Need Assistance? Let Us Handle the Hard Part
Getting your business legally registered doesn’t have to be overwhelming. Digzy Tech can manage:
- Trade License applications in all major cities
- SECP company and name registrations
- Newspaper publication support
- Renewal reminders and complete legal documentation
Contact our team today to take the administrative burden off your shoulders so you can focus on running your business the right way from day one.
