So you want to start a business with little experience and capital? Think Again. There are many important things that you need to know before investing your money. You have to make a clear business plan and set your goals. You need to do some market research and find the opportunities.
Starting a business in Pakistan is a challenging task. One thing you need the understand first that Without “Chai Pani” doing business is impossible. You can’t even register your company or get a sales Tax Number without it.
For those who don’t know about me, I’m Ali R. Khan, 25, recently graduated, Trying to establish exporting business in Karachi. I want to share some experience and process of exporting with those of you who are thinking to start export related business.
Ok, You have decided that you want to export something from Pakistan and you are looking for buyers and you got few inquiries and one of them is very serious but you are not sure about Documentation and whole process of exports. What Would you Do? Here is the step by step guide on How to start a business:
1- Register Your Company
You have to register your company for exporting anything from Pakistan. It can a Firm, Private Limited or any other form but main thing is it should be registered and have some membership with related trade organization in your industry. you can do this on yourself or hire a corporate lawyer to do this for you. I suggest that you take the services of corporate lawyer because it’s not an easy task in Pakistan. There is so much paper work.
SECP For Registration of company in Pakistan
2- Get NTN and Sale Tax Number
You can’t receive Payment and you can’t get Custom clearance if you dont have National Tax Number and Sales Tax Number. Though it seems very complicated to have all these numbers in the beginning of your business but they are mandatory to get your shipment cleared.
FBR Get Sales Tax and NTN online Pakistan
3- Payment Issues
Open a bank account for your newly registered company. Your client may transfer payment to your company account or you may go for L/C payment. Don’t worry if you dont know about L/C because your bank account manager will guide you along the way if you have account in good bank (SC is good).
If you are receiving payment through Bank Transfer, you need E-Form from your bank for the custom clearance and sales tax. That’s why I suggest you that Sales Tax number and NTN numbers are very important.
4- Customs and Shipping
WOW, this part looks very technical but believe me it’s not. you don’t have to meet with any custom guy if your freight forwarder is reliable and experienced. You don’t have to visit port or shipping line if your shipping agent is professional. Choose your partners carefully after a detailed meeting.
So Now, If you are wondering What is “Chi Pani” It’s Local Term for Bribe. There is a famous quote:
” World Moves on Chai Pani”
and yes it’s my own.
See you soon with more topics and Information on Business Start-ups.
And Never Give up. Never Ever Give up.