Textile company is a type of business or company that buys and sells a variety of fabric or textile, there are variety of textile companies around the world, textile mills provide the raw material to make apparel and textile products, they take natural and synthetic materials, such as cotton and polyester, and transform them into fiber, yarn, and thread.
Yarns are strands of fibers in a form ready for weaving, knitting, or otherwise intertwining to form a textile fabric.
Textiles are made from many materials, with four main sources: animal (wool, silk), plant (cotton, flax, jute, bamboo), mineral (asbestos, glass fibre), and synthetic (nylon, polyester, acrylic, rayon). The first three are natural. In the 20th century, they were supplemented by artificial fibres made from petroleum.
The textile industry of Pakistan contributes 57% to the exports of the country, thereby playing a significant role in the country’s economy and is the biggest production section of the nation. It also sits as being the source of jobs and trade profits, utilizing 40% of the workforce and contributing up to 8.5% of the total GDP of the country. At the beginning of 2018, the entire sector was worth USD 7.72 billion.
Major Sectors in Textile Industry
The major portions of the textile industry are contributed by the following sectors:
cotton spinning sector;
cloth sector;
textile made-up sector including towels, tents, canvas, cotton bags, bed wear, hosiery, readymade garment;
synthetic fiber manufacturing sector;
filament yarn manufacturing industry;
art silk and synthetic weaving industry; and
woolen industry.
The textile sector has recently received a setback due to power outages, scarcity of gas, thread price fluctuations, depreciating value of rupee and lack of technological advancements in the sector. However, by the end of 2020, Pakistan has seen a revival in the industry. Lifting the comprehensive lockdown in May has redirected all textile export demands to Pakistan as other exporting countries such as China and India are still in a lockdown. Incentives and export facilitations introduced by the government has also improved the export of textile in the country.
On March 2020, the government announced the introduction of a Textile Policy 2020-2025 which was set to improve the textile imports up to $28 billions in the next five years. The important initiatives under this policy include:
Fixing electricity and gas tariffs at US cent 7.5 per KWh and $6.5 per MMBTU for the next five years;
Formation of Specialized Economic Zones;
Increasing production and yield of cotton and improving cotton seed quality to increase exports;
Increasing the availability of Man-Made Fiber (MMF) and increasing the ratio of cotton to MMF usage 50:50 from 70:30
Simplifying the procedure for application for temporary import schemes;
Allowing inter/intra-bond schemes transfers of intermediate products to indirect / direct / commercial importers will be allowed;
Reviewing the withdrawal of SRO 1124 or Zero rating on textile industry;
Enhancing the long-term financing facility by at least $1 billion per year;
Drawback of local taxes and levies is to be provided to garments and made-ups;
Minimum turnover tax will be reverted to 0.5% from 1.5% and indirect exporters will be also included within the taxation regime available for direct exporters.
The Textile Policy 2020-2025 is yet to be approved by the cabinet for it to be implemented.
Incorporation of Textile Company in Pakistan
Incorporating a textile company in Pakistan is a simple process with no requirement of any additional licensing or registration with any other Association and simply requires registration with the Securities and Exchange Commission of Pakistan (SECP) and the Federal Board of Revenue (FBR). The process is entailed as follows:
Registration with Securities & Exchange Commission of Pakistan (SECP)
The SECP is a regulator granted with the mandate to regulate the corporate sector and thereby specifically handles the object of incorporation of all public and private companies. The incorporation procedure is divided into three steps:
Reservation of Name
The first step towards the incorporation of a company is to reserve a suitable name subject to Section 10 of the Companies Act 2017. Three proposed names which fulfill the criteria provided are to be specified for approval. Such reservation can either be made by a separate application or the same can be made alongside the application for incorporation. No extra fee is chargeable for reserving a name alongside the application for incorporation of company. However, for a separate application, a fee of rupees 200/- is chargeable for an e-application and for a physical application a fee of rupees 500/- is chargeable.
After the submission of the application and due fees, the registrar will examine the names provided, and if they fulfill the criteria provided, will issue a certificate for reservation of name for up to 60 days, within which the application for incorporation of company is to be made.
Application for Incorporation
As previously stated, an application for incorporation of company can either be separate or alongside application for reservation of name. Fee for incorporation is in accordance to the type, capital and size of the company, in accordance to Seventh Schedule of the Companies Act 2017.
Such application is to be accompanied by the following documents:
Memorandum of Association duly signed by the subscribers. In case of physical submission, it shall be duly stamped under Stamp Act 1877.
Articles of Associations duly signed by the subscribers.
Copies of NIC / NICOP of the subscribers / directors / chief executive officers.
Copy of NIC of witness in case of physical filing of application.
Duly stamped authority letter of subscriber or intermediary authorizing him to file documents for incorporation for a physical submission.
Original paid bank challan in case of physical submission.
For an online application, all relevant documents are to be scanned and uploaded except for the memorandum and articles which will be generated online.
Issuance of Incorporation Certificate
Once all the relevant documents have been submitted to the Registrar, SECP, he shall examine the same and determine if all relevant documents are complete and all requirements have been complied with. Once the registrar is satisfied, he shall register the Memorandum & Articles of Association and other documents, and will issue a certificate for incorporation of company under his signatures and authenticated by his official seal.
Restrictions with Federal Board of Revenue (FBR)
Previously a separate application had to be made to the FBR for issuance of BNTN number, however the SECP has introduced a one window facility, whereby which the data collected by the SECP is sent to the FBR for registration of NTN number.
Our Core Competencies
1
Collaborative Skillset
Collaborative lawyers trust the wisdom of the group; lone wolves and isolationists do not do any good anymore.
2
Emotional Intelligence
Distant, detached lawyers are relics of the 20th century, the market no longer wants a lawyer who is only half a person.
3
Technological Affinity
If you can not effectively and efficiently use e-communications, and mobile tech, you might as well just stay home.
4
Time Management
Virtually a substantial part of lawyers difficulties in this regard lie with their inability to prioritise their time.
What People Say About Us
Thank you for your email and the final draft. Indeed it is one of the finest drafts I have come across with. Certainly, your commitment level, eagerness to resolve, intellectual strength, attention to detail and legal expertise are commendable. Under your admirable guidance and direction, I have been able to maneuver with immense success and will reach fruition much earlier than anticipated. Thank you for being so supportive!
Yaser Shan ~ Toronto, Canada
Thank you again so much for this wonderful service. I just wanted you both to know, I spent weeks searching for a service in Pakistan like this, that could legally handle payroll for a Pakistani employee for a US based business and so far I am extremely happy with your organization's service and punctuality. Your service thus far is absolutely amazing and I know Sunita is grateful that we were able to find your organization to ensure her position at our company.
Prince E. Rich IV | CEO ~ Rich Technology Group LLC, USA
We are very happy with the work you have done. Its highly appreciated the professionalism and deep research by the team. Accept our deep gratitude! I do not know how to say Thank you to you and your team! It's a masterpiece you have created and we are very thankful for your help to assist in our social cause.
Imtiaz Makhani ~ Karachi, Pakistan
Thank you very much for your fantastic support, which has been absolutely invaluable throughout the process. We really enjoyed working with you and look forward to plenty more opportunities for shared projects into the future.
Dr. Albrecht Muser | KPMG ~ München, Germany
Working with all of you over the last years has been a pleasure and an honour! Your expertise, focus on customer service and professionalism make it possible for us to provide superior services to our clients and I am so grateful to you.
Maude Burger-Smith ~ Cape Town, South Africa
We are glad to inform you the receipt of current outstanding balance in our bank account from the disputed party. Therefore we request you to arrange to close the dispute case with them as per our management decision. We would like to take this opportunity to thank you for all the support and advice to solve this matter. It was pleasure working with you all.
Rahul Meppad ~ Dubai, UAE
Thank you for your support in this process and for your great hospitality. Your assistance has been of great importance. It was also important to see and experience the high quality of your services and your well known firm.
Magnus Greko ~ Sweden
Thank you for your support in this process. Your assistance has been invaluable. We are looking forward to a long lasting working relationship with you. Also, thank you for hospitality during these past days.
Lothar Geilen ~ Germany
Dear Atty. Iram Fatima: I would like to let you know that my wife came in USA last week. The U.S. Embassy Islamabad approved her visa petition in the lights of all the wonderful endeavors done by you and Mr. Birach. It was a long legal battle of about 7 years. I must say that your law firm is one of the best in the country and you are a highly professional advocate. Dr. Zafar should feel proud to have you in his crew. Finally, again I would say Thanks for all your legal services and I am your best reference.
Zubair Mufti ~ Texas, USA
Dear Dr Zafar and Iram: Thank you very much for timely submission of the excellent opinion letter. It is very well drafted and covers the key points. We very much appreciate your excellent and timely work in preparing the legal opinion.
Mrs. Iqbal Farrukh ~ San Francisco, USA
Dear Attorney Iram Fatima: Thanks so much for all of your kind efforts in this area and I must admit that your legal firm is the best in the country.
Zubair Mufti ~ Texas, USA
The efficiency and effectiveness of your services are much appreciated.
James Alexander Linton Williams ~ UK
We are complately satisfied with the e-communication and provided services. We would like to thank the whole team, and Ms Iram Fatima in particular, for your professionalism and the Due Diligence you carried out.
Elena Pavlova ~ France
Many thanks for this, and thank you for being so prompt. It is very appreciated.
Alex Gilchrist ~ Somerset, UK
Thank you again for handling my case so well, I am honoured to be represented by you.
Yolanda Slabbert ~ Port Elizabeth, South Africa
Thank you very much for your great attention to my case, I see that you're a very serious company and I'm happy that I've choose you.
Sergio Lujan ~ Bogota, Colombia
I really appreciate the help and support provided by Zafar and Associates to our company. I don’t know what to say or how to thank you, but to tell the truth your services are really the best legal services we have ever received. You are truly a professional and effective law firm.
Adnan Branbo ~ Dubai, UAE
Thank you very much for your contribution. We will review the information and incorporate it into the International Citation Manual of Washington University Global Studies Law Review. Your help is appreciated.
Naomi Levin ~ Washington, USA
I wanted to let you know that i got the documents. And i wanted to thank you and the whole team who worked on my case. You all did a good job thanks again.
Naima Ashraf ~ The Hague, Holland
Thank you very much for all the work you have done to ensure that the Death in Service benefit reaches the parents of the deceased. Are they expecting this money and do they understand where it is coming from? We appreciate your assistance and excellent work.
Susan Bauer ~ London, UK
I have no words to express my gratitude to you. People like you are very rare and I have the privilege to know one of those. May God shower all blessings on to you and your family. I am a small man with only prayers on my lips.
Dr. Haridev Bhargava ~ Saratoga, USA
I must say your handling of this matter has been totally sterling and I shall not have any hesitation in recommending you and your firm to others.
Rosina Ahmad ~ UK
Good morning, I received the documents back yesterday afternoon. Thank you so much for your quick response to the job. We really appreciate it. Looking forward to working with you in the further.
Mrs. Jan Malcolm ~ Auckland, New Zealand
Thank you very much for the case. It is just brilliant! I am so grateful that you went out of your way to help me.”
Loraine Bhan ~ Suva, Fiji
I do appreciate highly the sense of commitment your office wishes to dedicate to the follow up of our question for information. I have transmitted the contents of your email IMMEDIATELY to the contact, together with confirmation of the highest esteem we attribute to the quality of the services rendered by ZAFAR & ASSOCIATES.
Paul Wouters ~ Istanbul, Turkey
Thank you very much for the information and good news. I know you’ve been working too hard and I appreciate every single minute working with you all. It’s an experience to be in the team of hardworking people and I am very proud to be included.
Evangeline Williams ~ Paphos, Cyprus
I would like to thank you for your swift and excellent service that your office recently provided us. I would definitely forward your contact information to my friends and family in reference to seeking legal matters in Pakistan. I would also inform Sean Hogan and his associates to pass on your contact information to any clients that may need assistance in the matters of law in Pakistan.
Zarar Khan ~ Miami, USA
We are greatly impressed with your firm and the professional calibre of the partners. If acceptable, we would like to keep your firm as a reference for future projects. Please let me know.
Tanaz Pardiwala ~ Barcelona, Spain
We are happy to inform you that we have received the original succession certificate via DHL. I want to take this opportunity to thank you for your efforts, especially Dr. Zafar, who was kind enough to handle the security deposit at the court. With our best wishes and success for the New Year, to you and your esteemed team, we remain with.
Mansur Asrar ~ Istanbul, Turkey
I am writing to convey to you how much I appreciate your prompt service! My mother called me today and informed me that 2 lawyers from your firm visited her. It is a pleasant surprise to know that such a law firm exists in our very own country. I would definitely recommend your firm to any friend who is in need of professional legal services in Pakistan.
Naveed Ahmad ~ USA
I am truly very impressed with the follow up of your law firm. I never thought a Pakistani firm would be so aggressive and pro-active. Do you even happen to come to NYC? If so, then please look me up here when you visit next.
Faisal Mumtaz ~ New York, USA
I want to thank you for all services you have rendered to us. I really appreciate it and hope on further cooperation.
Petrov Andrey ~ Moscow, Russia
With God's help you have done a great thing for our family. Thank you so much for your diligence and expertise. We are truly grateful to God for all that is possible now. We also are looking forward to meeting you and your staff when we arrive in Pakistan next month. Please let us know if there is anything we can bring for you from the United States as a gift.
Shaukat Minhas and Colleen Davidson ~ Dallas, USA
Your help in investigation case is well appreciated. My brother and I are ever grateful to you for obtaining the document. Thank you and god bless you and your practice team.
Kevin Lessani - Dallas - USA
I greatly appreciate that your law firm is very careful in its preparation of petitions. In fact, the outcome of a legal fight greatly depends on how effectively a law firm has presented its case. If it fails to conceive in advance as to what it will have to face in defense, it can not prepare an effective petition. I admire that ZAFAR & ASSOCIATES - LLP are very careful in their initial step i.e. to prepare petition, around which the whole legal battle is fought.
M. Iftikhar Sheikh ~ Dhahran, Kingdom of Saudi Arabia
