Choosing the right legal structure affects your liability, how you're taxed and how easily you can raise investment. Here's a practical comparison.
| Feature | Sole Proprietor | AOP / Partnership | Private Limited (SECP) |
|---|---|---|---|
| Registration | FBR NTN only | Partnership deed + FBR (optional Registrar of Firms) | SECP incorporation + FBR |
| Liability | Unlimited | Unlimited (joint) | Limited to share capital |
| Taxation | Individual slabs | AOP slabs | Corporate tax rate |
| Compliance | Low | Moderate | Higher (annual returns, audit) |
| Best for | Small shops, freelancers | Family businesses, partners | Scaling startups, investors |
Single Member Company (SMC)
An SMC lets a single owner enjoy limited liability with a private limited structure, which is ideal for solo founders who want to grow.
Our Recommendation
Start simple if your risk is low, but move to a company structure once you're signing large contracts, hiring staff or seeking investment.
We'll help you choose the right structure and handle registration with SECP and FBR. Talk to an advisor.