How to start Export Business in Pakistan

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.

Scenario:

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.

Useful Links:

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.

 

76 Replies to “How to start Export Business in Pakistan”

  1. Good… Now One thing…. Is it necassary to have membership of trade organization to start export or only SECP registrataion will e enough? Second Is it possible that I can export something which I am importing from some other country…. I mean I will not bring it to Pakistan rather will instruct my supplier (suppose in China) to directly ship it to destination country (suppose UAE).
    What will be the process. I reckon all the taxes can be deducted in Pakkistan once amount will be transferred by client to company account (as you mentioned).

  2. valuable guidelines for starting a export business;

    but one thing yet in PAKISTAN , there are many departments and peoples setting in them who do their duties without any “CHAI PANI”.

  3. Very well explained precisely, can you also add an article how to find potential importers/buyers of different countries from Pakistan.

    Thanks
    Fahad

  4. Can you tell about the international market. Registering a company is easy, but finding authentic and reliable international buyers is difficult. There must be a place in Pakistan where a company can post all its products for export purposes. Can you help me with that.

  5. Respected Ali,
    I read your topic about exporting procedure, for those who are new and starting with small capital.

    Regards.
    Babur Mughal

  6. Respected Ali,
    I read your topic about exporting procedure, for those who are new and starting with small capital.
    It’s very helpful guidance.

    Regards.
    Babur Mughal

  7. I just read on fbr website that one need gst number who is importer, whole seller, distributor, service provider and retail.. If we are doing just export business so do we still need gst number?

  8. I want to Start Export business (garments-Tank Tops) I need guidance in this regard. I have Company’s NTN and KCCI member ship but I have no experience

  9. AOA, Nice information, so you get your own licence? i am a MBA student quite young to start a business, will you please guide me , how much finance is required to establish a firm and get the licence at minimum level…..

  10. i am student of fcs part 2 pre engineering. and its reallt too helpful. couple of days ago i was very confused wether i am on the right track cuz i did’t know anything about exports now it seems to be easy. 🙂

  11. Hi there, if. I get registered , for example, Punjab enterprise pvt limited , am I applicable to export anything ? Or there is any criteria about the export of specific products ?

  12. I would love to see a follow up guide. Where you can detail basics like finding suppliers, some examples of great shippers in Karachi, and how to find places to sell your product abroad.

    Thanks again for the great guide!

  13. Sir ,I’m working in Saudi Arabia ,rafha
    I want to know how to import tobacco products from Pakistan .is it possible ,kindly guide me a little .
    Did the custom allow,s us to export tobacco.

  14. I wasnt expecting anything at all when i googled and here i landed on this page … precise guide to getting started exports biz .. thank you so much.. plz enlighten us with more of your research and knowlegde

    Thanks

  15. dear Ali i read your whole message and its sounds good dear i am from Multan and i want to do export business kindly give me your contact number i want to discuss some thing about it.. 03135789992… this is my contact number

  16. Well,in a simple way how you provide a guideline we want to get more guideline for new business please provide us way to access you.

  17. Ali R Khan Sahab!
    I have done all the 3 steps mentioned above, but I want some more detailed guidelines about Step no. 4.

  18. Dear Ali its a important information you share.
    I am Leather technologist and have good buyer from USA and export through my friends company account he tacks 2 % commission on total invoice value.

    Please guide me how i can export my self as i have no any experience of export.

  19. wishing u best of luck in ur newly established business (which is not that new at the time im posting these comments tho 🙂 )
    please tell us few reliable agents clearing/forwarding

  20. I want to start Export Business, I have a source of almost 1500 different surgical Instruments, more than 1000 of Sports products and more 150 different export quality garments products. But the only thing i dont have is the way to start export business. The main problem for me is: how to reach target customer in foreign countries.

  21. A useful article brother! I have all the needs what you mentioned but having no experience of export . And please mention the most popolur export goods .

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