Pakistan Software Export Board has been the most important part of promoting the country’s IT industry. All software houses targeting a strong standing in national and international markets have much to gain from registering with the PSEB. This article thoroughly guides company registration for the software house, including its advantages, eligibility requirements, necessary documents, and detailed step-by-step registration process under PSEB.

Understanding PSEB and Its Importance

PSEB is a government agency devoted to promoting Pakistan’s IT industry. Its services include IT export facilitation, market access provision, and many more support services for businesses and freelancers. Software houses registered at PSEB are entitled to several benefits tailored to increase their growth and competitiveness in the international market.

Eligibility Criteria for PSEB Registration

To be eligible for PSEB registration, a software house must:

• Operating as an IT/Software Company: It should be a registered software company or an IT-enabled services (ITeS) provider with software developers and IT consultants.
• Local Compliance: The company is regulated by local laws, e.g., tax and industry laws.
• Active Operational Status: The company is supposed to actively engage in IT or software service exports with a functional office, a team of professionals, and an ongoing project.

Required Documentation for PSEB Registration Based on Business Type

PSEB registration requirements will vary depending on your business’s legal status. Below is a list of the requirements categorized by Companies, Sole Proprietorships, and partnerships.

1.   For Companies (Registered with SECP)

The companies registered under the Securities and Exchange Commission of Pakistan (SECP) are to provide the documents listed above in certified true copies.

• FBR issued a copy of the company’s NTN.
• CNIC copies of all directors and shareholders.
• For foreign nationals, copies of the directors’ and shareholders’ passports.
• A certified true copy of the Certificate of Incorporation confirming that the company is a body corporate itself.
• Certified copies of the Memorandum and Articles of Association, which describe the company’s objectives and structure.
• Certified true copy listing details of directors, secretaries, and other key personnel in Form 29.
• Bank statement or maintenance certificate (for newer companies).

2.   For Sole Proprietorships

The documentation process for a sole proprietorship with SECP is fairly simple as it is not a legally incorporated form. The required documents include:

• A copy of the business the FBR issued NTN.
• CNIC of the sole proprietor.
• Also, a Business Registration Certificate, if issued by local government authorities.
• For foreign nationals, a copy of the proprietor’s passport.
• Bank statement or bank account maintenance certificate.
• Documents proving the business’s existence. For instance, contracts or invoices proving that the business is active.

3.   For Partnerships

If your business is a partnership, you must submit the following:

• A copy of the firm’s NTN was issued by the Federal Board of Revenue (FBR).
• CNIC Copies: CNICs of all partners.
• In the case of foreign partners, copies of their passports are required.
• A certified true copy of the partnership deed providing the partnership’s terms, roles, and ownership structure.
• A certified true copy of the firm’s registration with the relevant registrar.
• Bank statement or bank account maintenance certificate.
• Documentations that contribute to the proof of ongoing projects or procurements.

Providing certified true copies helps you add a seal to your documentation, making it legally accepted by the Pakistan Software Export Board. To avoid processing delays, ensure that certifications have been fully obtained from the SECP or related authorities.

Step-by-Step PSEB Registration Process

1. Create an Account on the PSEB website: Users must access the PSEB website and sign up to create an account.
2. Submit Initial Approval Application: After you’ve filled your form and uploaded your documents, submit the application and await initial approval.
3. Pay Registration Fee: After receiving initial approval, pay the registration fee. If it is startup firms (firms registered within the last one year), the fee is Rs 5000, and if it is established firms, the fee is Rs 10,000. ONce the payment has been made, it will automatically be approved and shown in the system/
4. Await Final Approval and Certificate Issuance: PSEB will take 1-2 weeks to verify once you have paid. Once the payment is verified, PSEB will issue you a certificate, meaning you have been registered with them.

Benefits of PSEB Registration for Software Houses

1. Reduced Tax Rate: Software houses registered with the board enjoy a reduced tax rate of 0.25%, whereas a tax rate of 1% applies to those not registered with the PSEB.
2. Business Promotion: PSEB promotes registered companies through its IT portal, exposing potential clients and partners worldwide.
3. International Participation: Registered companies participate in all IT-related global events and exhibitions to increase business networking and collaboration.
4. Visa facilitation: PSEB can facilitate visas for its members, employees, and investors and simplify international business travel.
5. Improved Credibility: Registering with a government-related body like PSEB increases the company’s credibility and develops confidence in clients and investors.
6. Legal Compliance for Call Centers: For software houses operating call centres, PSEB registration is mandatory to comply with legal requirements and prevent potential legal actions from authorities like the FIA and PTA.

Streamline Your Registration Process with Sidekick

Navigating the PSEB registration is a highly confusing matter, especially for startups and growing software houses. That’s where Sidekick comes in—a professional business consultancy service catering to IT sector registrations. From all paperwork to getting in touch with the PSEB officers, Sidekick has all the services to keep the procedure hassle-free.

Therefore, you save time and make error-free, costly mistakes, allowing you to grow your business even further. Trust Sidekick to provide tailored guidance and support, making your PSEB registration smooth and efficient. Visit their website today to kickstart your journey to becoming a registered IT powerhouse!

Conclusion

PSEB registration of a software house is a strategic move that offers many benefits, including tax exemptions, business promotion, enhanced credibility, and compliance with the law. After all these steps and following all the requirements, software houses can use PSEB registration for growth and prosperity in the highly competitive IT industry.