SECP offers several company types, but new businesses in Islamabad usually choose between a Single Member Company (SMC) and a Private Limited company. They share most benefits, yet differ in ways that matter later.
Single Member Company (SMC)
- One shareholder who is also the sole director
- Must nominate a nominee director in case of death
- Lower compliance burden: no AGM in the usual sense
- Ideal for solo consultants, freelancers scaling up and single-owner trading businesses
Private Limited Company
- Two to fifty shareholders; minimum two directors
- Can issue shares to co-founders, employees and investors
- Required by most venture capital and bank financing
- Annual general meeting and more board formalities
Cost and timeline
Both incorporate in 5–10 working days. SECP fees depend on authorised capital, not company type. Our professional fee starts at PKR 25,000 for either type, excluding government fees.
Our recommendation
If there is any chance you will bring on a partner or investor in the next two years, register a Private Limited company now. Converting an SMC later is possible but costs time and money. If you want a simple vehicle for one owner, an SMC is perfect.
