Essential Legal Requirements for Starting an E-commerce Store in Pakistan

If you’re serious about growing your online business, it’s smart to start legally strong. In Pakistan, e-commerce is booming — but many new sellers ignore basic legal steps, which can lead to big problems later.

Here’s a simple guide to the legal requirements you should consider when starting your online store.

1. Register Your Business (Optional but Recommended)

While you can start informally, serious sellers should register:

• Sole Proprietorship (Easiest and cheapest)
• Private Limited Company (For scaling and bigger brands)

Register through SECP (Securities and Exchange Commission of Pakistan).
Benefits include:

• Business bank account
• Access to payment gateways (like PayFast)
• Trust and credibility with customers

2. Get a National Tax Number (NTN)

Apply for an NTN through the FBR (Federal Board of Revenue) website.
You’ll need:

• CNIC copy
• Proof of business address
• Mobile number and email

Benefits:

• Open business accounts
• Legally run ads and campaigns
• Avoid penalties for online transactions

3. Open a Business Bank Account

Once registered, open a dedicated business account.
Recommended banks:

• HBL
• Meezan Bank
• UBL

It helps you manage income separately from personal finances.

4. Understand Tax Obligations

If you sell online, you may be required to:

• File annual tax returns
• Collect sales tax (only if selling at large volumes or registering for GST)

Tip: Consult a local tax consultant for a simple and affordable setup.

5. Privacy Policy & Terms of Service

It’s important to have basic legal documents on your website:

• Privacy Policy – How you collect and protect customer data
• Terms & Conditions – Rules for using your store, returns, refunds, etc.

Many free generators are available online — just customize according to your store.

6. Register for Payment Gateways

If you want to accept card payments (Visa, Mastercard), you’ll need:

• Business NTN
• Business bank account
• Valid website/store

You can register on:

• PayFast.pk
• Easypay (by Easypaisa)
• 2Checkout (International buyers)

Final Words

Starting legally might seem boring, but it builds a real, trustworthy brand. It also opens doors to better services, funding options, and partnerships.

And remember:
AAQAF offers support for store setup, website policies, and even helps with business registration at very reasonable rates.