What Are Common Scams in the Company Registration Process?

Hamza and Hamza
Jun 17
3 min read

Company Registration In Pakistan is a crucial step for any entrepreneur or business entity looking to operate legally. While the process is increasingly streamlined through online portals like the Securities and Exchange Commission of Pakistan (SECP) and the Federal Board of Revenue (FBR), many individuals still fall victim to scams. These scams usually target new business owners unfamiliar with legal procedures, taking advantage of their lack of awareness, urgency, or trust in intermediaries. Understanding the common scams in the company registration process can help business owners avoid financial loss, legal complications, and delays in business operations.

1. Fake Registration Agents or Consultants

One of the most widespread scams involves fake agents or "consultants" who claim they can register your business quickly or cheaply. These individuals often advertise on social media, WhatsApp groups, or informal job boards.

They may charge high fees, ask for advance payments, or promise shortcuts—only to disappear after taking the money. In some cases, they may provide forged or fake registration documents, which can later lead to legal trouble or rejection by tax and licensing authorities.

2. Bogus SECP or FBR Officials

Another common scam involves individuals impersonating officials from SECP, FBR, or other government departments. These scammers might call or email business owners, claiming there’s a problem with their Company Registration In Pakistan, and demand payment to “resolve” the issue or expedite the process. They often use fake letterheads or email addresses resembling official ones to trick victims into believing the communication is genuine. Legitimate government officials never demand payments via personal bank accounts or mobile wallets.

3. Online Phishing Websites

With the rise of online registrations, scammers have created fake websites that look like the SECP or FBR portals. Unsuspecting users who enter their personal and business details on these websites risk having their information stolen. This data can then be used for identity theft, corporate fraud, or even illegal company formation under the victim's name. Always verify the web address before entering any sensitive information—official portals typically end with “.gov.pk”.

4. Overcharging for Government Fees

Some intermediaries or agents misrepresent the actual government registration fees. For example, registering a private limited company in Pakistan may cost Rs. 1,500 to Rs. 5,000 depending on the capital involved. Dishonest agents might charge ten times that amount while showing fake "official" receipts. While service charges are allowed, any agent should provide a transparent breakdown of costs and official SECP or FBR receipts.

5. Fake NTN or Tax Documents

Some scammers provide fake NTN certificates or sales tax registrations. Victims often find out the truth only when they apply for bank accounts, import licenses, or submit tax returns. Using fake documents not only wastes time and money but can also result in criminal charges for forgery or tax evasion.

6. Unregistered Businesses Offering Registration Services

Many companies offer company registration services without being formally registered themselves. These businesses have no legal standing and may disappear without notice. Always verify if the registration service provider is themselves registered with SECP or at least has a valid NTN from the FBR.

7. False Promises of Tax Exemptions or Licenses

Some scammers promise tax exemptions, trade licenses, or special permissions as part of a “premium” registration package. These offers are often fake, as most tax exemptions require a separate legal process, and licenses must be obtained from specific authorities depending on the business sector.

Conclusion

Company registration in Pakistan is becoming easier thanks to digitization, but scams still thrive due to gaps in awareness. Business owners must be cautious when choosing agents of Hamza & Hamza Law Associates or services, verify all credentials, and preferably use official online portals. When in doubt, consult a licensed lawyer or chartered accountant. Staying informed is the best defense against becoming a victim of fraud during company registration.