How Can I Reserve a Company Name in Pakistan?

Reserving a company name is one of the first and most critical steps in Company Registration In Pakistan. The Securities and Exchange Commission of Pakistan (SECP) oversees this process, ensuring that business names are unique, relevant, and comply with the legal requirements of the Companies Act, 2017. A properly reserved company name sets the foundation for incorporating the business. A thorough guide to assist you in navigating this process can be found below.

1. Importance of Reserving a Company Name

Reserving a company name is essential for protecting your business identity and ensuring compliance with the law. The SECP mandates that each company must have a unique name that does not conflict with existing registered entities. Name reservation offers the following benefits:

Identity Protection: It prevents others from using the same or a similar name.

Legal Compliance: Ensures your company name adheres to SECP's regulations.

Facilitates Registration: A reserved name is a prerequisite for company incorporation.

2. Steps to Reserve a Company Name in Pakistan

The process of reserving a company name involves an online application through the SECP’s eServices portal. Below are the detailed steps:

Company Registration In Pakistan

Step 1: Create an Account on SECP eServices Portal

To begin the process, you need to access the SECP eServices portal. Follow these steps:

Visit the SECP eServices portal.

Register as a new user by providing basic details, including your CNIC (for residents) or passport number (for foreigners), email address, and contact information.

Create a secure password to access your account.

Once your account is activated, you can proceed with the name reservation process.

Step 2: Check the Availability of the Desired Name

Before applying, for Company Registration In Lahore, it is essential to check if your desired company name is available. The SECP provides an online search tool for this purpose.

Use the Name Search Tool on the SECP website.

Ensure the name is unique and does not conflict with existing companies.

Avoid prohibited or restricted words, such as those implying government affiliation, religious sensitivity, or other inappropriate connotations.

If your desired name is not available, consider alternative names that align with your business objectives.

Step 3: Log in to the eServices Portal

Once you’ve verified the availability of your desired name, log in to the SECP eServices portal to begin the formal application process.

Step 4: Submit the Name Reservation Application

After logging in, follow these steps to submit your name reservation application:

Select Name Reservation: From the menu, choose the “Company Name Reservation” option.

Provide Information: Enter your preferred name and up to two alternate names. The SECP will review these names in order of priority.

Business Description: Briefly describe your company’s intended business activities. This helps SECP determine if the name aligns with your operations.

Attach Supporting Documents (if applicable): In rare cases, SECP may require additional information to support your application, such as proof of intent to use the name.

Pay the Fee: The name reservation fee is PKR 200 for offline applications and PKR 100 for online submissions. You can pay through designated banks or online payment systems integrated with the portal.

Step 5: Wait for Approval

Once the application is submitted, the SECP reviews it. Usually, the approval procedure takes one to two business days. During this time, the SECP ensures the proposed name complies with all regulatory requirements.

If approved, the name will be reserved for 90 days, during which you must complete the company incorporation process.

If rejected, you will need to revise your application and resubmit it with alternative names.

3. Guidelines for Choosing a Company Name

When reserving a name, adhere to SECP’s guidelines to avoid rejection:

Uniqueness: The name should not resemble any existing company name or trademark.

Prohibited Words: Avoid using words that imply government approval, offensive language, or misleading terms.

Relevance: The name should reflect the nature of your business.

Language: Both English and Urdu names are acceptable.

For example, if you plan to register a technology company, names like “Tech Solutions Pvt. Ltd.” or “Innovative IT Services Pvt. Ltd.” would be appropriate.

4. Common Challenges in Name Reservation

Entrepreneurs often face the following challenges during the name reservation process:

Name Rejection: This can occur if the name is too generic, similar to an existing company, or violates SECP guidelines.

Delay in Approval: While SECP typically processes applications promptly, incomplete or incorrect applications may cause delays.

Insufficient Knowledge of Rules: Many applicants are unaware of the SECP’s specific requirements, resulting in repeated rejections.

To avoid these issues, ensure thorough research and preparation before applying.

Company Registration In Pakistan

5. Consulting Professionals for Assistance

If you find the process challenging, consider consulting a corporate lawyer or a business registration consultant. These professionals can help you:

Select an appropriate name.

Ensure compliance with SECP regulations.

Apply accurately and efficiently.

Conclusion

Reserving a company name in Pakistan is a crucial step in starting your business journey. By following SECP's guidelines, using the eServices portal, and carefully selecting a unique and relevant name, you can streamline the process. Ensuring compliance at this stage can save you time and effort during the subsequent company registration process. Whether you’re a local entrepreneur or a foreign investor, proper planning and execution will set the foundation for a successful business venture. Expert Corporate Lawyers at Hamza & Hamza Law Associates have a great deal of experience in offering corporate legal services to our clients.