Asia Common Law
Small companies with PKR 250M turnover or below, Pakistan
Small Company status under the Income Tax Ordinance 2001 caps CIT at 20% versus the 29% standard rate. Combined with the 0.25% IT export regime and 68 double tax treaties, founders can structure efficient cross border operations from Pakistan.
20% small co rate68 DTAsITO 2001
Start setup {placement} 4 min · no card required
Corp tax
29%
Fastest setup
4 weeks
Tax treaties
68
Region
Asia
What you'll need
- No resident director required
- Local registered office required
- Economic-substance test applies
- Minimum capital: No minimum capital
- Administrative language: English and Urdu
- Legal system: Common law
Tax and treaty profile
- Corporate tax 29%
- Effective rate ~39%
- Tax treaties 68
- VAT rate 18%
- Withholding on dividends 15%
Key treaty partners
United KingdomUnited StatesChinaUnited Arab EmiratesSaudi ArabiaGermany
Banking and payments
- Banking takes 2 to 4 weeks with KYC
- Stripe not supported
Considerations
If you need Stripe, Wise, or Mercury
Stripe, Mercury, and Wise do not support PKR business accounts, and SBP foreign exchange repatriation requires bank approvals with supporting documentation. Most tech founders pair a Pakistani operating company with a Delaware or Singapore parent for international receipts.
No Stripe/Mercury PKRSBP FX approvalsDual entity structuring