Sales Tax (STRN) & Business Registration in Pakistan

Businesses making taxable supplies above the registration threshold, plus manufacturers, importers, wholesalers and many retailers, generally need to register for sales tax and get an STRN. A registered professional can confirm whether your business must register and complete it for you.

Sales tax registration is done through the FBR IRIS system by adding the sales tax registration, providing business details, bank account and premises information, and completing biometric verification where required. A registered professional manages the process and your first monthly return.

STRN stands for Sales Tax Registration Number — the number issued when a business registers for sales tax with FBR. It is required to charge and file sales tax. It is separate from your NTN, which is for income tax.

A sole proprietorship is owned by one person with unlimited personal liability and simple FBR registration. A private limited company is a separate legal entity registered with SECP, offering limited liability and more credibility but more compliance. A professional advises which suits your business.

Once the company name is reserved and documents are in order, SECP incorporation can often be completed within a few working days. Timelines depend on name approval and document readiness. A registered professional handles name reservation, incorporation and FBR registration together.

FBR (Federal Board of Revenue) administers taxes — income tax, sales tax and NTN registration. SECP (Securities and Exchange Commission of Pakistan) registers and regulates companies. A private limited company registers with SECP and then also registers with FBR for tax.

Sales-tax-registered businesses must file a return each month declaring taxable sales, output tax collected and input tax paid, and pay any net tax due. Missing monthly returns leads to penalties. A registered professional files your monthly sales tax returns on time.