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How to register a firm in Pakistan is a step by step process for this registration and also has the detail of required documents. Whereas, the sole proprietor may run his/her business in the country, likewise, the law permits to run the business by two or more persons by sharing profit and loss as per predefined terms and conditions in the partnership deed which will be called firm and through Article of Association and Memorandum of Association of the Private Limited Company. The partnership deed contains basic information of the partners and terms and conditions which are decided by the partners, address of the business office with the nature of the business. This article will provide the complete guideline to register the firm in Pakistan under the Partnership Act, 1932.

Definitions under section 4 of the Partnership Act, 1932:


“Partnership is a relation between the parties/persons who are agreed to share profit or loss through a business carried on by all of them.”


“When the parties/persons who are agreed to carried on business and entered into a partnership agreement with each other are called Partners individually.”


“When the persons who have entered into a partnership with one another partners under the Partnership Act, 1932 then this partnership collectively called the firm”

Following Ingredients required to register the firm in Pakistan:

  • Lawful objective
  • Mutual Partnership Agreement
  • Business must be carried out by all or any of the partners.

How to Register the Firm in Pakistan: (Section 58 of the Partnership Act, 1932)

  1. The registration of a firm may be affected at any time by sending by post or delivering on the firm’s registered address by the concerned Registrar, and the statement should be in the prescribed format with the prescribed fee, stating;
  2. The firm name,
  3. The business address of the firm and if more than one addresses then the principal business address will be mention above,
  4. If the firm carries on the business any other place also mentions,
  5. It is also necessary to mention the dates when the partners join the firm,
  6. The full names, parentages and permanent address of all the partners, and
  7. Duration of the firm.

The registration application should be signed by all the partners, or by their authorized agents, if any agent may be authorized of the behalf of the partners.

Documents Required for the Registration of Firm:

  1. Original Partnership deed verified by the Notary-Public with a photocopy. (Incomplete Partnership deed is not acceptable)
  2. Copies of the CNICs of all the Partners. (Verified by the Notary-Public)
  3. Original Bank Challan of Rs. 100/- paid on Form 32-A, in National Bank of Pakistan.
  4. Application for registration on Form-1, signed by the partners, and verified by the witnesses.

Note: For the e-registration of the firm “Partnership Firm IT Form” is required.

Documents required for changes/amendment in the Firm: (if any)

  1.  Original amended Partnership deed verified by the Notary-Public with a photocopy.
  2. For the addition of a new partner copy of the CNIC verified by the Notary-Public.
  3. In case of Addition/Deletion of Partner, the entire existing partners must come to the concerned office along with their original CNICs and verify the changing.
  4. Copy of the Proclamation for Addition/Deletion of partner(s).
  5.  Application form like Form-II or Form V or both according to rule (According to required changes), with Changes fee original bank challan paid on Form 32-A, in National Bank Of Pakistan.

Note: Names that are not allowed for firms:

            Pakistan, Quaid-e-Azam, Jinnah, National, New, United Nations, Co or Company, Govt., Provincial Govt., Group, Abbreviations like WHO, ILO, etc…

Effect of Non-Registration: (Section 69 of the Partnership Act, 1932)

  1. Nobody can enforce any right which may arise through the contract or maybe conferred by this Act may be filed in any Court of law by any person suing as a partner in a firm against the firm person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or have been shown in the Register of Firms as a partner in the firm.
    1. Similarly, nobody can enforce any right which may arise through the contract that may be filed in any Court of law by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firm as Partners in the firm.
    1. The right to claim of set-off or other proceedings that may enforce any right under the contract and the provisions of the sub-sections (1) and (2) shall also apply, but shall not affect;
  2. Right to sue for the dissolution of the firm or for the rendition of accounts of the dissolved firm, or any other right or any power that may realize the property of the dissolved firm, or
  3. Any official assignee, receiver, or Court under the Insolvency (Karachi Division) Act, 1909, or the Provincial Insolvency Act, 1920, has the right or power to realize the property of an insolvent partner.
    1. This section shall not apply—
  4. This chapter does not apply whose places of business in Pakistan are situated in areas by the notification under section 56, and the firms or the partners in firms which have no place of business in Pakistan, or
  5. To set-off any claim through the suit that may not be exceeding one hundred rupees in the value which is not specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887, or to any proceedings in execution or other proceedings incidental to or arising from any such suit or claim.

Penalty for furnishing false particulars: (Section 70 of the Partnership Act, 1932)

If any person who believes that the statement is false and does not believe to be true and signs, amending, notice or intimation such statement under this Chapter. If the person also containing the particulars that are incomplete, shall be punishable with imprisonment which may extend to three months or with fine, or with both.

Liability of a partner for acts of the firm: (Section 25 of the Partnership Act, 1932)

The firm’s object should be lawful if there is any suspect in the firm’s act then every partner should be jointly liable to the firm’s activities.

Liability of the firm for wrongful acts of a partner: (Section 26 of the Partnership Act, 1932)

Where, by the wrongful act or omission of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners, loss or injury is caused to any third party, or any penalty is incurred, the firm is liable therefor to the same extent as the partner.

Liability of firm for misapplication by partner: (Section 27 of the Partnership Act, 1932)


  • A partner acting within his apparent authority receives money or property from a third party and misapplies it, or
  • A firm in the course of its business receives money or property from a third party, and the money or property is misapplied by any of the partners while it is in the custody of the firms,

The above-mentioned particulars provide the complete guideline that how to register the firm in Pakistan under the Partnership Act, 1932, and then apply the NTN (National Tax Number) by FBR.

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