AOP: Register a Partnership Firm in Pakistan

An A.O.P (AKA Partnership) is a firm managed by all partners according to the contract signed by the allies at the moment of filing. It is not a separate lawful object and co-workers have infinite liability which implies that all co-workers can be held responsible in event of a fault on debt or any other liability or any other form of wrongdoing even on part of one co-worker or comrade. 

AOP, How to register a business Partnership

There is only one course of tax that involves only the co-workers to pay the taxes, unlike the PVT Limited Company where there are two layers of assessment. In a PVT Limited Company, tax is paid by the company on good value and the stockholders refund the tax individually on the wages drawn from the company as directed by the Law. Tax rates on an AOP change with the income pieces. A more inferior percentage rate refers to lower-income/profit braces while a more high-priced tax rate refers to AOPs with higher wages. 

AOPs own low compliance provisions which are why it is favored by many small businesses in the beginning. 


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Name Selection of An AOP

You can assign any name to your business or a firm as long as it serves the below-mentioned requirements:

  1. There is not another firm with a comparable name in the same lineage of business
  2. This does not contain words that show consent or approval of the government

Partnership Agreement

The Partnership agreement is an agreement between the partners in which benefits, services, values shares, and other commitments of each partner are discussed. 

  • It is necessary to make all terms in writing to avoid each dispute in near future.
  • It is desirable to continue the following features in the partnership agreement:

General Details:

  1. Name and location of the firm and all the associates/partners
  2. Variety and extent of business
  3. Capital injected by any individual partner and the moment on which it is or will be injected
  4. The proportion of gain and loss distribution
  5. The tool for extension and elimination of Partners
  6. Continuation of Partnership, if any.

How to Register an Association of Persons (AOP) or a Partnership Firm In Pakistan?

A partnership firm is registered with the registrar of firms within your particular region or city. This way of registration is governed by Pakistan’s Partnership Act, 1932. This registration request must be signed by all partners that are involved. 

The following papers compose the whole application:

  1. Written Partnership agreement on Rs. 1000/- stamp paper (has to be fixed by a lawyer or we can do this for you).
  2. Filled partnership application.
  3. Bank challan on the suggested fee
  4. A rental contract for an office in a business area simultaneously with proof 
  5. CNIC’s of all allies/partners onward with CNICs of all guards. One observer is required for each partner. 
  6. Testimony concerning the efficiency of submitted papers
  7. Proof of all the preceding documents duly approved by a notary public.

If the recorder or registrar is filled with the application form and all the documents, he will originate the certificate of registration. 

FAQs about Partnership Registration in Pakistan


Yes, the Partnership Agreement is approved within the Partners terms for the terminus of the Partnership as a whole as well as for the removal or termination of a single partner, as appropriate. 


Usually, a partnership may be registered with the registrar of firms within two weeks.


Each Partner is collectively and jointly responsible for the responsibilities gathered by the Partnership. 


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