Legal Requirements for Starting a Tax Practice in Pakistan

Institute of Corporate and Taxation of Pakistan

Starting your own tax consultancy in Pakistan can be a profitable and rewarding career move — especially after completing a Certified Tax Advisor (CTA) course. But to operate legally and professionally, there are a few important steps you need to follow.

Here’s a breakdown of the legal requirements to start your tax practice:

1. Register Your Business Name

Choose a unique and professional name for your consultancy. You can operate as a:

• Sole Proprietor

• Partnership Firm

• Private Limited Company

Register your business name with FBR or SECP, depending on your business type.

2. Apply for an NTN (National Tax Number)

You must have an NTN registered with the FBR to operate legally and file your own and clients’ taxes.

You can apply for an NTN through the IRIS portal after creating your FBR account.

3. Register for Sales Tax (If Required)

If your services cross the sales tax threshold, or you're providing taxable services (like in Sindh or Punjab), you may need to:

• Register with PRA (Punjab Revenue Authority) or

• SRA (Sindh Revenue Board) for service tax compliance

4. Open a Business Bank Account

Once you have your NTN and registration done, open a business bank account in your firm’s or company’s name for proper financial transactions and bookkeeping.

5. Set Up a Proper Invoicing System

You must issue tax-compliant invoices to clients, showing:

• Your business name & NTN

• Breakdown of services

• Any applicable withholding tax

Professional invoicing builds client trust and keeps you compliant.

 6. Maintain Records & File Returns

As a tax consultant, you’re expected to:

• Maintain proper records of your income and expenses

• File monthly/quarterly tax returns (income tax and sales tax, if applicable)

• Ensure your business stays fully compliant

7. Stay Updated with Tax Laws

Your practice must stay current with:

• Annual Finance Acts

• SROs and FBR notifications

• Changing compliance rules

This is key to maintaining credibility and delivering correct advice to clients.

 Conclusion

Starting a tax consultancy in Pakistan is fairly straightforward if you follow the legal process. With the right registrations, compliance, and knowledge, you can run a successful and trustworthy tax practice — and make a strong mark in the growing world of taxation.