National Tax N um ber Procedu re F or a Co mpany / Firm/ Indi v idual And AOP PREPARED BY: LE GAL SER VICES CELL Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pkHEAD OFFICE 6 th Floor, LDA Plaza, Egerton Road, Lahore Tel: (042) 111-111-456, Fax(042) 6304926-7 [email protected]REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE PUNJA B SINDH NWFP BALOCHISTAN 8 th Floor, LDA Plaza, 5 th Floor,Baharia Ground floor Banglow No.15-A Egerton Road, Complex-II, M.T.Khan State Life Building Chaman Housing, Lahore. Karachi. The Mall,Peshawar. Scheme, Airport, Road, Quetta. Tel: (042) 111-11 1-456 Tel: (021) 111-11 1-456 Tel: (091) 9213046 -47 Tel: (081) 831623, 831702 Fax: (042) 6304926-7 Fax: (021) 5610572 Fax: (091) 286908 Fax: (081) 831922 [email protected][email protected][email protected]help desk- qta@smed a.org.pk
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INTRODUCTION OF SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established
with the objective to provide fresh impetus to the economy through the launch of an
aggressive SME developm ent s tr at egy.
Since its inception in October 19 98, SMEDA ha d a dopted a sectoral SME d evelopmen t
approach. A few priority sectors were selected on the criterion of SME presence. In
depth r esearch was cond u cted and comp rehen sive developmen t plans were formu lated
after identification of impediments and retardants. The all-encompassing sectoral
development strategy involved overhauling of the regulatory environment by taking
into consideration other important aspects including finance, marketing, technology
an d h u ma n resource development.
SMEDA has so far successfully formulated strategies for sectors, including fruits and
vegetables, marble and granite, gems and jewellery, marine fisheries, leather and
footwear, textiles, su rgical ins tru men ts, tra ns port an d da iry. Wherea s th e task of SMEdevelopment at a broader scale still requires more coverage and enhanced reach in
term s of SMEDA’s a rea s of opera tion.
Alon g with th e sectora l focus a b road sp ectru m of ser vices a re n ow bein g offered to th e
SMEs b y SMEDA, which are driven b y factors like enh an ced interaction am ongst th e
stakeholders, need based sectoral research, over the counter support systems,
exclusive business development facilities, training and development for SMEs and
inform ation dissem ina tion t hr ough wide ra nge of pu blications .
ROLE OF LEGAL SER VICES CELL
The Legal Ser vices Cell [LSC] is a pa rt of Bu sin ess Developm en t Division of SMEDA
and plays a key role in providing an overall facilitation and support to SMEs. The LSC
provides guidance based on field realities pertaining to SMEs in Pakistan and other
par ts of th e world.
LSC believes that information dissemination among the SMEs on the existing
regulatory environment is of paramount importance and it can play a pivotal role in
their sus tainable deve lopment.
In order t o facilitate S MEs a t t he Micro Level LSC h as developed u ser -friendly syst ems ,
which provide them detail description of the Laws, and Regulations including theprocess a nd steps required for comp lian ce.
The purpose of this document is to provide SMEs with information pertaining to a
compa ny’s registr ation / incorporation procedure. Comp an ies int erested in en ha ncing
their understanding about the procedures can also use the document and
docum enta tion required to comply with registration pr ocedu re. For con venience of th e
readers a p rocess flow cha rt a nd sa mp le of variou s forms are a lso inclu ded.
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DEFINITIONS:NIC: National Identity Card.
NTN: National Tax Number.
HUF: Hindu undivided families
ASSOCIATION OF PERSONS (AOP)
Association of persons includes a firm, a Hindu undivided family, any artificial juridicalperson and any body of persons formed under a foreign law, but does not include a
company.
FIRM:
Firm is a relation between persons who have agreed to share the profit of a business carried on by
all or any one of them acting for all.
WHO IS REQUIRED TO FILE INCOME TAX RETURN:
Subject to Income Tax Ordinance, 2001, the following persons are required to furnish a return of
income for a tax year, namely: -
i) Every Company.
ii) Every person (other than a company) whose taxable incomes for a tax year exceeds themaximum amount that is not chargeable to tax under this Ordinance. (Maximum limit for
tax year 2005 is 100,000).
iii) Any person not covered by (i) or (ii) who-
a) has been charged to tax in respect of any of the two preceding tax years;
b) claims loss carried forward under this Ordinance for a tax year;
c) owns immovable property, with a land area of two hundred and fifty square yards or
more or owns any flat, located in areas falling within the Municipal limits existing
immediately before the commencement of Local Government Laws in the Provinces;
or areas in a Cantonment; or the Islamabad Capital Territory;
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NTN PROCEDURE
Every taxpayer shall apply in the prescribed form accompanied by the prescribed fee Rs.50 per NTN Certificate. Every taxpayer will have a distinct National Tax Number.
APPLICATION FOR NTN CARD:
The two forms IT-A and IT-B has been designed for the following categories.i) IT-A, for Companies and Registered firms
ii) IT-B, for Individuals and AOP
In case of a company/firm NTN application shall also be accompanied by applications for NTN
Certificate on IT-B of members/directors, who previously do not have NTN Certificate.
Similarly application for NTN of AOP shall be accompanied by applications on IT-B for NTN
Certificate of members of AOP, who previously do not have NTN Certificate.
RELEVANT COLUMNS TO BE FILLED-IN AND DOCUMENTS REQUIRED TO BE ATTACHED;
FOR COMPANY:
RELEVANT COLUMNS OF FORM IT-A;
Category (Name of Business i.e. Company’s Name), Business Address, Office Phone No.
and Fax, Principal Business Activity, Principal business activity (Tick one), Nature of business (Mention here the nature e.g. garments etc.) Company Type (Private or Publicetc), Incorporation Number (as given on Certificate of Incorporation from SECP) , Date
of Incorporation (as mentioned on certificate of Incorporation), Residential Status, OldNTN(If any), Particulars of Directors (Use additional sheets if required, For
partners/directors who previously have no NTN, separate applications on form IT-Bof category business individual with relevant columns in which name of business isname of the company must be filed along with this application for issuance of NTN
card), Signature of Principal Officer/ Managing Partner of the Company.
DOCUMENTS;
A) Attested copies or National of CNICs or passport (in case of Foreign National) of
all Partners/DirectorsB) Attested copy of Certificate of incorporation or registration of the company. In
case of a trust, the trust deed.All documents must be attested by Class-I gazetted officer or by an officer of the Bank orby president/secretary of the tax bar.
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FOR REGSITERED FIRM (Here Registered firm mean firm registered with Registrar of
Firms)
RELEVANT COLUMNS OF FORM IT-A;
Category, Name of Business (Firm’s Name), Business Address, Office Phone No. and
Fax, Principal Business Activity (Tick one), Nature of business (garments etc.),Registration Number (As mentioned on form-C from Registrar of Firms), Date of Registration (As mentioned on form-C) , Residential Status, Old NTN(If any), Particulars
of Partners (Use additional sheets if required, For partners who previously do nothave NTN separate applications on form IT-B of category business individual with
relevant columns in which name of business will be the name of the firm must befiled along with the application for issuance of NTN of firm) , Signature of Principal
Officer/ Managing Partner of the firm.
DOCUMENTS;
a) Attested copies of CNICs or passport (in case of Foreign National) of all Partners.b) Attested copy of Certificate of registration of the firm (Form-C).
c) All documents must be attested by Class-I gazetted officer or by an officer of theBank.
FOR BUSINESS INDIVIDUAL/DIRECTOR/PARTNER
RELEVANT COLUMNS OF FORM IT-B;
Category, Name of applicant (mention here name of individual/director/partner as the casemay be), Residential Address, Name of business (An individual can do a business by name.However, in case of Director or Partner mention here company or firm’s name), Business
Address (Mention here address where an individual/company/firm is doing its business),Phone Residence, Phone Business, Business Fax, Principal Business Activity (Tick one),
Nature of Business (like garments etc.), NIC No. (Old and new), Sex, Old NTN (If any),Nationality, Residential Status, Passport No. for foreign nationals only, (NTN OF Employer,Name of Employer and Address of Employer is only applicable where applicant is a salaried
person), Signature of the applicant.
DOCUMENTS;
a) Attested copy of CNIC of Business individual.
b) Attested copy of passport in case of a foreign individual.c) Other documents with photo identification driver’s licence.
All documents must be attested by Class-I gazetted officer or an officer of the Bank or by
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president/secretary of the tax bar. In case the applicant is director or partner then he/she willattach this form IT-B with application form of company or firm i.e. IT-A
FOR ASSOCIATION OF PERSON (AOP)
RELEVANT COLUMNS OF FORM IT-B;
Category (Tick AOP), Name of applicant, Residential Address, Name of Business,
Business Address, Phone.(Res/Bus.), Business Fax, Principal Business Activity (Tick one), Nature of Business (Like Garments etc.), New and Old NIC NOs, Old NTN (If any), Nationality, Residential Status, Particulars of members, Particulars of partners or
member(give here name, NTN (if any) and NIC Nos. of all members of AOP), (Aseparate application on form IT-B shall be submitted for those members who have
no previous NTN card), Signature of the applicant i.e. (Principal Member).
DOCUMENTS;
a) Attested copies of CNICs of all the members.
b) Attested copy of passport in case of a non-resident members.c) Attested copy of instrument of partnership in case of a firm.
All documents must be attested by Class-I gazetted officer or an officer of theBank or by president/secretary of the tax bar.
FILING OF NTN APPLICATION
An application for National Tax Number Card shall be submitted to the nearest NTN Center. Theapplicant can submit application at the following address (NTN Cells).
Computer Center,32-C Model Town-A, Shabbir ShaheedRoad, Bahawalpur.
Ph # 0621-9255280Ph # 0621-9255282
Sahiwal Sargodha Rawalpindi
Incharge NTN Cell,
Income Tax Complex,Canal Colony, Sahiwal.
Ph. # 0441-225887Fax # 0441-226997
Incharge NTN Cell,
Computer Center, 10-AClub Road, Civil Line
Sargodha.Ph # 048-9230682Fax # 048-9230684
Incharge NTN Cell,
MTU Building Mayo Road, Katchery,Rawalpindi.
Ph. # 051-9270411Ext. 242-243
NOTE: -
Ø NTN Cards will not be issued against incomplete applications.
Ø Presently NTN is only available against new NICs (CNICs). Old NIC Number mustbe clear on copy of new NIC attached with the application.
ALLOTMENT OF NATIONAL TAX NUMBER
The commissioner having jurisdiction over an applicant may after examination of allrelevant documents and evidence, and after satisfying himself of the genuiness of the
application, may direct issuance of the National Tax Number Certificate for a periodprescribed by Commissioner. The Commissioner shall make a decision on an application
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for a National Tax Number Card within fifteen days of the application being properlylodged.
DISPLAYING AND QUOTING OF NATIONAL TAX NUMBER
Every person deriving income from business chargeable to tax who has been issued witha National Tax Number Card shall display the person’s National Tax Number at a
conspicuous place at every place of business of the person.
Every NTN Certificate holder is required to quote the National Tax Number in the
following circumstances, namely:-
a) in all commercial transactions entered into by the person;
b) in cash memos issued under rule 30;
c) in all returns, statements and other documents required to be furnished under theOrdinance and in any correspondence with the Commissioner ; and
d) in all documents relating to the person’s business on the following matters, namely:-i) all new connections of utilities, including water, gas, electricity and
telephone;
ii) the entering into a loan with a banking company or financial institution;
iii) the opening of letters of credit; and
iv) the transfer of urban immovable property.
INTIMATION REGARDING CHANGES IN PARTICULARS
Every person having NTN Certificate must intimate to the concerned Commissioner of
Income Tax any changes in name, address and nature of business as mentioned inapplication for issuing of NTN Certificate.
AMENDMENTS AND RE-ISSUE OF NTN
An NTN holder can apply for amendments in entries of NTN Certificate or for re-issue on the following
grounds.
If the NTN holder1. have not received new NTN Certificate so for2. have lost NTN Certificate
3. want to have some changes made in the NTN Certificate4. want to reissue NTN Certificate against expiry of old NTN Certificate
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Addresses of NTN CellsDocuments required to be attached
1. Copy of New NIC (CNIC) of the NTN Holder attested by the class-1 Gazetted Officer,
Bank Officer, President or Secretary of Tax Bar Association.
2.
The original NTN Certificate (if issued already) should be surrendered, with changes.(Now verification by concerned circle officer is not required)
3. If NTN Certificate has been lost, an affidavit in this regard on stamp paper Rs.20/-4. Photo copy of latest assessment order if change in status is applied (if applicable).
5. Companies and registered firms should issue an authority letter on the official letter headfor collection of NTN Certificate.
