Branch Office and Liaison Office Registration in Pakistan for Foreign Companies

Not every foreign company entering Pakistan needs to incorporate a local subsidiary. A branch office lets a foreign company carry out permitted business, such as executing a contract, under its own name. A liaison office lets it build relationships and promote products without earning income locally. Both need permission from the Board of Investment (BOI) and registration with the Securities and Exchange Commission of Pakistan (SECP). This guide explains the difference, the approval steps and the obligations that continue after the office opens.

Branch office, liaison office or subsidiary?

Feature	Liaison office	Branch office	Subsidiary company
Can earn income in Pakistan	No	Yes, within the scope of permission	Yes
Legal entity	Part of the foreign company	Part of the foreign company	Separate Pakistani company
Approval	BOI permission and SECP filing	BOI permission and SECP filing	SECP incorporation
Liability	Parent company	Parent company	Limited to the subsidiary
Typical use	Market research, promotion, coordinating with distributors	Executing a specific contract or project	Long-term operations, local trading and hiring

If the plan is a permanent operation with local sales, a subsidiary is usually more practical. Our guide to setting up in Pakistan covers the questions boards ask when choosing a structure, and our SMC vs private limited comparison helps if you choose a subsidiary.

What a liaison office can and cannot do

• It can promote the parent’s products and services, explore investment opportunities and act as a communication channel
• It can promote technical and financial cooperation between the parent and Pakistani businesses
• It cannot sign commercial contracts, invoice customers or earn revenue in Pakistan
• Its expenses must be met through inward remittances from the parent company

Step by step: opening a branch or liaison office

1. Prepare corporate documents. Certified and attested charter, memorandum and articles, certificate of incorporation, latest audited accounts, list of directors, board resolution approving the office and appointing an authorised representative.
2. Apply to the Board of Investment. Submit the online application with the documents, the proposed scope of activities and, for a branch, the contract or project details.
3. Security clearance. The application is cleared by the relevant security agencies through the Ministry of Interior.
4. Receive BOI permission. Permission is issued for a fixed period and specific activities, with conditions to follow.
5. Register with SECP. Within 30 days of establishing a place of business, file the prescribed documents, including the authorised person’s details and the principal place of business in Pakistan.
6. Open a bank account with a scheduled bank in the office’s name for inward remittances and expenses.
7. Register for tax. Obtain an NTN and, where the branch provides taxable services or goods, the relevant sales tax registrations.

Compliance after the office opens

• File annual accounts of the Pakistan office and of the foreign company with SECP within the prescribed time
• Report changes in the authorised person, address or parent company details to SECP
• Renew BOI permission before it expires, or seek extension for a new contract
• File income tax returns; a branch is taxed on income attributable to its Pakistani operations
• Keep records of all inward remittances and repatriations in line with State Bank of Pakistan rules
• Engineering and construction firms may also need PEC registration to work on projects

Common delays and how to avoid them

• Documents not attested by the Pakistani mission in the home country
• Scope of activities described vaguely, leading to BOI queries
• Late SECP filing after the office has already started operating
• Liaison offices invoicing customers locally, which breaches permission conditions
• Letting BOI permission lapse while staff are still in place

For a local company route instead, see our SECP company registration guide.

Frequently asked questions

How CEC can help foreign companies

Connect Engineers & Consultants prepares BOI applications, coordinates document attestation, files with SECP, opens tax registrations and manages annual compliance for branch and liaison offices. See our SECP corporate services.

Planning an office in Pakistan? Tell us what the office will do and we will recommend the right structure.

BOI policies, SECP requirements and foreign exchange rules can change. Confirm current requirements with BOI, SECP and your bank before applying. This guide is general information, not legal or tax advice.