Hello Everyone !

I am participating in SEC-S20W4 | Business Ideas | Dev's Teaching Team | Registration, License, and Taxes organized by @dove11 .I’m excited to share my ideas and what I have learned about starting a business, including the important aspects of registration and taxes. Thank you for this opportunity🤗🌸🌼.

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Section 1: Registration Procedure

What is the registration process for your business, and which departments do you need to apply to?

Starting any business in our country requires careful attention to the registration process, which is crucial for ensuring compliance and legality. To begin, I will choose a unique name for my business, which will be registered under my name and my friend’s name.

Once we finalize the name, we will check its availability through the Securities and Exchange Commission of Pakistan (SECP). After confirming that the name is available, we can proceed with the registration either online through their portal or by visiting their office.

The first step in the registration process involves filling out a detailed registration form. This form requires us to provide our Computerized National Identity Cards (CNIC) and supporting documents. And we will need to pay a registration fee, which varies based on our business structure.

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After submitting the application, we may have to wait a few days for processing. Once approved, we will receive a National Tax Number (NTN) from the Federal Board of Revenue (FBR). This number is essential for tax purposes and will be used to file our tax returns.

My father, who has experience working at the FBR, has guided me through this process. Following registration, we will also obtain necessary licenses from the local government, including health and safety permits.

By adhering to government rules and regulations, we can establish credibility with our customers and stakeholders, fostering trust and confidence in our business. This will also enable us to ensure quality assurance and comply with tax obligations, ultimately contributing to our business's success.

Section 2: License/Permit Procedure

What is the procedure to obtain any necessary licenses or permits for your business, and what challenges do you face?

To start my e-commerce business, I need to secure several necessary licenses and permits to ensure lawful operations. The first step is obtaining a trade license from the local government.

To do this, I will write an application and submit it along with the business registration certificate I received earlier. I will also include any additional documents required as per their guidelines. This process typically takes about one to two months.

However, I anticipate facing significant challenges during this procedure. The local government often charges extra fees for expediting permits, which can lead to delays for regular applicants.

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Sometimes, obtaining a permit can take months, and it can be frustrating not to have clear updates on the status of my documents. This means I may have to visit government offices multiple times, causing further delays.

Moreover, I will incur legal expenses related to documentation and have to gather a considerable amount of material. I have heard from others that many people resort to bribery to speed up these processes, which is both ethically wrong and could increase costs for my business.Despite these challenges, once I receive my trade license, I will be able to run my business smoothly.

Section 3: Tax Structure

What is the applicable sales or trade tax for your business, and are there other tax slabs or rebates available?

In order to establish my e-commerce business successfully, the first step is to examine the tax structure according to my country’s regulations. This will aid in financial planning and compliance with the laws in Pakistan. Currently, the tax on products sold is set at 17%. If my annual revenue exceeds PKR 10 million, I will need to follow specific tax regulations, which include detailed reporting and potential audits.

To support my business growth, I will also participate in tax rebate programs for small and medium enterprises. As my sales increase, it will be crucial for me to manage my taxes effectively. According to Pakistani law, I must pay 17% tax on the products I sell, and I intend to meet my tax obligations promptly.

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My father, who has experience with the Federal Board of Revenue (FBR), emphasizes the importance of timely tax payments and contributing to the country’s development.

I will ensure that my tax returns are accurately filed, reflecting my sales throughout the year. This will require maintaining detailed financial records to track my sales and corresponding tax liabilities. By adhering to the rules set by the FBR, which my parents have guided me on, I can ensure my business remains compliant and financially healthy.

These records will inform my decisions regarding pricing strategies, budgeting, and reinvestment in my business. This will help me sustain long term growth also enable me to provide quality products and expand my customer base.

Section 4: Tax-Related Problems

How do you manage tax-related problems, and what consumer protection measures or fair trade policies exist?

Yes, if I face any tax related issues, I have the advantage of seeking guidance from my father, who works at the Federal Board of Revenue (FBR) and is a senior employee. His experience in managing taxes can give me a better understanding of how to solve tax-related problems. He is very strict about ensuring we stay on the right side of the law.

My father always wants to guide us, and he will be very helpful in advising me on how to manage taxes and handle any potential disputes. He insists that we should pay our taxes on time, which contributes to our country’s development.

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With my father’s knowledge and support, I can understand fair trade policies and build a strong foundation in ethical business practices. This will help us protect our business and our customers.

I am confident that I can handle any potential issues that may arise. Also, I can consult professional tax advisors to ensure I am following all regulations and that my business operates smoothly.

Our country also has consumer courts that can fairly resolve disputes between businesses and customers. If I encounter any disputes in the future, I can seek their help as well.

My father always guides me on understanding the tax structure, and I will continuously strive to manage my tax concerns and disputes effectively. This will help me run my business successfully, satisfy our customers, and improve the quality of our products.

That's it from today's blog I hope you will like it. With best wishes ❤️. Now I like to invite @sualeha, @sahar07 and @mustafajaman to participate in this amazing contest.

Thanks alot for reading ❤️🤗 .

My introduction post

Regards : @hudamalik20 .