SARDAR KHAN & CO | Telecommunication Company Setup in Pakistan

Telecommunication CompanyA telecommunication company enables communication across the world. It allows people to connect through phones, the Internet, or other digital networks. Whether the data is in the form of voice, text, audio, or video, these companies create the infrastructure that makes global communication possible.

Major telecommunication companies include:

  • Telephone operators (wired and wireless)

  • Satellite companies

  • Cable companies

  • Internet Service Providers (ISPs)

In Pakistan, registering a telecommunication company involves three key authorities:

  1. Securities & Exchange Commission of Pakistan (SECP)

  2. Federal Board of Revenue (FBR)

  3. Pakistan Telecommunication Authority (PTA)

Registration with SECP

Step 1: Name Reservation

Before registering a company, a suitable name must be reserved under Section 10 of the Companies Act 2017. You need to propose three names that meet the SECP criteria.

  • You can submit a separate application or combine it with the incorporation application.

  • Fees:
    • Online separate application: Rs. 200/-

    • Physical separate application: Rs. 500/-

    • Combined application: No extra fee

Once approved, the SECP reserves the name for 60 days. Within this period, the company incorporation application must be submitted.

Step 2: Application for Incorporation

The incorporation application can be submitted separately or with the name reservation. Fees depend on the type, capital, and size of the company as per the Seventh Schedule of the Companies Act 2017.

Documents required:
  • Memorandum of Association signed by subscribers (stamped if physical)

  • Articles of Association signed by subscribers

  • NIC/NICOP copies of subscribers, directors, and CEO

  • Witness NIC (for physical submission)

  • Authority letter for filing documents (physical submission)

  • Original paid bank challan (for physical submission)

For online applications, all documents are scanned and uploaded, except for the Memorandum and Articles, which are generated online.

Step 3: Issuance of Incorporation Certificate

After verifying the documents, the SECP registrar will issue the certificate of incorporation. This certificate is signed and stamped officially by the registrar, confirming the company is legally registered.

Registration with FBR

Previously, companies had to apply separately for an NTN number. Now, SECP provides a one-window facility where collected data is shared directly with FBR for NTN registration.

Licensing with PTA

The Pakistan Telecommunication Authority provides licenses for telecommunication companies in Pakistan. These licenses vary depending on the type of services offered.

Cellular Mobile Licensing

Mobile licenses follow government policy directives. Currently, Pakistan has four mobile operators, while Azad Jammu & Kashmir has six.

  • Mobile licenses last 15 years.

  • Radio spectrum is auctioned in blocks defined by the PTA and the Frequency Allocation Board (FAB).

  • Payment is made as 50% down payment and the remaining in annual installments over 10 years.

License Benefits & Obligations:
  • Operators can build their own infrastructure in PTCL regions.

  • Interconnection circuits can be self-provided if needed.

  • Right to construct networks and contract for the right-of-way.

  • Performance bonds are required for coverage obligations.

  • Licensees submit QoS measures to PTA.

  • Infrastructure sharing and national roaming are encouraged.

  • Interconnection with other licensed networks is allowed.

  • Operators must provide interconnection cost evidence within 12 months.

  • Customer Charter publication is encouraged.

  • Annual fees up to 0.5% of gross revenue; contribution of 0.5% to R&D fund.

Long Distance & International (LDI) License

LDI licenses allow communication between points inside and outside Pakistan.

Application Requirements:
  • Application letter and checklist

  • Fees:

    • Application fee: US$ 500

    • LL license: US$ 10,000 per region

    • LDI license: US$ 500,000

    • Radio frequency spectrum fee (block-specific)

  • Standby letter of credit: US$ 10 million (for LDI)

  • Incorporation certificate, Memorandum & Articles

  • Director and shareholder details

  • Undertakings on insolvency, criminal record, and license defaults

  • National Income Tax number

  • Board resolutions and Special Power of Attorney

  • Business and technical plans for first 5 years

  • Radio frequency spectrum and rollout maps

Local Loop (LL) License

LL licenses allow companies to build networks and provide basic telephone and telecom services in a region.

  • Fixed Local Loop (FLL): Fixed line services (non-wireless)

  • Wireless Local Loop (WLL): Fixed line with wireless medium, limited mobility

Requirements:

Similar to LDI licenses, with separate applications for each region (14 regions total).

Class Value Added Services (CVAS) Licensing

  • Includes Data CVAS for Vehicle Tracking Services

  • Validity: 15 years

  • Fees:
    • Initial: Rs. 100,000 per province (50% for Baluchistan)

    • Nationwide: Rs. 300,000

    • Annual: 0.5% of gross revenue

    • NGOs: reduced fees (initial Rs. 50,000, annual Rs. 5,000)

Required Documents:
  • Cover letter and authorization letter

  • Applicant profile and category selection form

  • Director/member details

  • True copies of legal documents (SECP, Trust, NGO, Government, Individual)

  • Undertaking of no defaults

  • Bio-data of key management

  • Business plan (3–5 years), bank statements

  • Network plan and agreements with operators

Infrastructure License

Two categories:

  1. Telecom Infrastructure Provider (TIP):
    Build infrastructure such as satellite hubs, fiber optic cables, radio links, submarine cables, towers, and related facilities.

  2. Telecom Tower Provider (TTP):
    Establish and lease telecom towers.

Fees:
  • National TTP: Rs. 5000

  • Provincial TTP: Rs. 500

  • TIP License: US$ 100,000

  • National TTP: Rs. 100,000

  • Provincial TTP: Rs. 40,000

  • Baluchistan TTP: Rs. 10,000

Documents Required:
  • Application letter with contact details

  • Processing and initial fees

  • Company information (Incorporation certificate, Memorandum & Articles, directors, shareholders, NICs/Passports)

  • Undertakings on insolvency, convictions, and defaults

  • Financial resources proof and business plan (5 years)

  • Market studies, cash flow, capital cost, and infrastructure cost

  • Technical documents (network diagrams, specifications, backbone network, hardware/software)

  • Support facilities and maintenance plans (TIP license)

  • Affidavit and PTA dues clearance (if previously licensed)

Type Approval

Any equipment connected to public networks requires PTA type approval, including:

  • Tracking devices (SIM/IMEI-based)

  • Satellite terminals

  • Wireless radios, repeaters, maritime radios

  • IoT, RFID, Bluetooth, smart meters, GNSS devices

  • IP phones, VoIP, video conferencing, PABX systems

Fees:
  • Locally manufactured: Rs. 5000

  • Imported: US$ 100

Required Documents:
  • Application form and fee

  • Manufacturer undertakings (compliance with PTA regulations, user data privacy, device mass production)

  • Technical data sheets, system testing reports

  • GSMA TAC verification (if applicable)

  • After-sales support and customer service details

Get expert help from Sardar Khan & Co to register and get licensed quickly and easily.

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