With Marzuna’s Pakistan EOR (Employer of Record) solution, you may grow your business in Pakistan without having to start from scratch, which might be a challenging task. A robust HR department is essential to the expansion of any business, particularly one that can effectively and precisely manage functions like payroll processing, attendance monitoring, compliance, and remote team onboarding. Using our automated and unified platform, you may use their global network to meet your global HR needs.
We make it easy for you to assemble exceptional remote teams, hire contractors or permanent employees, and understand the subtleties of Pakistani tax and compliance procedures.
Pakistan’s comprehensive array of employment regulations encompasses a wide spectrum of subjects related to industrial, commercial, and labor institutions. These regulations encompass a diverse set of legal provisions, statutes, actions, directives, and guidelines applicable to both local and foreign workers. Within Pakistan, several federal labor laws include the Workmen Compensation Act, the Payment of Wages Act, and the Employer’s Liability Act. Additionally, various laws are specific to particular provinces in Pakistan, such as Sindh, Punjab, and Khyber Pakhtunkhwa.
For foreign workers intending to work in Pakistan, a valid work visa is generally required, unless an exemption is granted due to a bilateral visa abolition agreement between Pakistan and their home country. To secure a work visa, employees must submit an application to the Board of Investment in Pakistan. Pakistan’s straightforward work visa application process, in combination with its well-defined labor regulations, makes it an attractive destination for businesses seeking to expand their operations. This conducive environment contributes to the ease of conducting business in Pakistan.
Here are some important aspects of employment in Pakistan:
Additionally, the Punjab province’s Revision of Leave Rules 1981 permits male employees to take paternity leave. Fathers are entitled to a 15-day paid paternity leave that can be used at the time of the baby’s birth or right before it, with a maximum extension of three months. This forward-thinking policy recognizes the importance of fathers in raising children and gives them the freedom to be there and helpful throughout a child’s critical first few months of life.
Laws
Earned annual leave
Laws
Earned annual leave
Laws
Earned annual leave
Laws
Earned annual leave
Laws
Earned annual leave
As businesses expand their operations internationally, they often face a critical decision in their recruiting strategy: hiring contractors or full-time employees. Prior to making this pivotal choice, it is essential for companies to acquaint themselves with Pakistan’s prevailing regulations pertaining to the employment of contractors and full-time workers.
In Pakistan, employment regulations are defined by a series of laws, including:
Under these legislations, workers who fall under their purview receive official employment letters outlining the terms and conditions of their employment. In Pakistan, employment can be categorized into six distinct types:
Understanding these categories is crucial for businesses looking to operate in Pakistan and make informed choices regarding their workforce composition.
Any company’s growth in Pakistan depends on selecting and employing the top candidate for the job. Using reputable employment websites or posting job advertising in major newspapers are the main methods utilized in the recruiting process. Candidates are screened by an exam and an interview process, which requires professional attire, including a necktie. There might not always be equal employment opportunities for women due to lower literacy rates. In Pakistan, contract labor offers reasonable short-term compensation and benefits, but employment permanence is rarely guaranteed.
Probationary term – The Standing Order Ordinance of 1968 specifies that the probationary term is three months long.
Notice of Termination of Employment – Under the Standing Order Ordinance of 1968, a one-month notice period is required before ending an employment contract. (Only permanent employees are covered by this.)
Severance Pay – The employee is entitled to severance pay or gratuity if their job is terminated for any cause other than wrongdoing. For every year of service that has been completed, or any portion of a year that exceeds six months, this is the equivalent of 30 days’ pay.
A service called an Employer of Record (EOR) solution allows businesses to recruit workers in Pakistan without creating a local legal company. Marzuna provides EOR services in Pakistan that let companies manage payroll, HR operations, and compliance with local legislation without establishing a separate corporation. Businesses may grow their worldwide workforce without worrying about the challenges of compliance and taxation thanks to our EOR solution in Pakistan. Businesses may easily manage their multinational teams and obtain excellent talent with the help of our EOR solution.
It’s crucial to be aware of Pakistan’s work permit and visa regulations when establishing a subsidiary and recruiting remote teams for commercial operations there. The employee’s passport and picture, a letter of company registration from the Securities and Exchange Commission of Pakistan (SECP), and a letter of recommendation for an extension from the Board of Investors (BOI) or Ministry of Interior (MOI) are all required in order to apply for a work visa. An interview may be necessary throughout the three to four month long visa application procedure. Our EOR software may help with the application process for a work permit in Pakistan and with effectively managing staff activities for client enterprises.
In Pakistan, managing payroll and making sure tax regulations are followed may be a difficult and time-consuming process. However, you can speed up this procedure and make sure that your payroll complies with local laws by using our EOR solution. We guarantee that your payroll is done properly and promptly whether you want to manage payroll remotely or outsource to us. Furthermore, you must create a subsidiary in Pakistan in order to run your business legally and handle payroll. With our knowledge and experience, you can streamline payroll administration while concentrating on expanding your company’s presence in Pakistan.
When a corporation decides to expand its operations into Pakistan, one of the initial critical decisions is the selection of the state where it will establish its subsidiary. It is vital to bear in mind that each location within Pakistan has distinct subsidiary laws that can significantly impact the operational dynamics of the business.
Pakistan offers various forms of commercial entities for establishment, including the Limited Liability Company (LLC), Free Zone Company (EPZ Company), Limited Liability Partnership (LLP), Public Limited Company (PLC), and representative offices, among others. Among these options, the Limited Liability Company structure is the most commonly chosen.
Specifically, in Pakistan, forming an LLC requires an initial capital of $1,000 and a minimum of two owners and two directors. Non-resident shareholders and directors are permitted, but they must each complete a separate NTN number application with the local tax office. Additionally, when the share capital exceeds US$5,000, the Pakistani government mandates that the LLC retain legal counsel who is typically based in Pakistan.
Before establishing an LLC, you must secure approval for the company name from the Securities and Exchange Commission. The process further involves opening a bank account in Pakistan, submitting application fees at an accredited Muslim commercial bank, signing the memorandum, and providing a list of directors.
Moreover, you need to complete registration with the labor department, obtain a digital signature from the National Institutional Facilitation Technologies, endure a six-week waiting period for LLC formation, and register with the local tax office, social security agency, and region-specific social security agency.
Given the complexities and potential challenges of establishing a subsidiary in Pakistan, our Employer of Record (EOR) solution offers businesses a streamlined means to operate legally, hire employees, manage payroll, and maintain business relationships on their behalf. This can be especially valuable for navigating the intricacies of local regulations and ensuring a smooth entry into the Pakistani market.
