The World Bank Group · 2018-09-25 · 1.1. Assignment Background Punjab Investment Climate Project...

Draft Report Date: 03 July 2016

The World Bank Group

Draft Baseline ReportInvestment Climate Project – Assessmentand Mapping of Business and RegulatoryEnvironment in the Province of Punjab,Pakistan

The World Bank GroupAssessment and Mapping of Business and Regulatory Environment in Punjab

Draft Baseline ReportTable of Contents

Ernst & Young Ford Rhodes Sidat HyderA member firm of Ernst & Young Global Limited 2

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ....................................................................................4

2. PROCESSES AND ORGANIZATIONAL OVERVIEW .............................................7

3. DETAILED BASELINE OUTCOMES ................................................................. 15

ANNEXURES


Draft Baseline ReportList of abbreviation


List of Abbreviations

Deputy Director DD

Deputy Chief Inspector DCI

Excise and Taxation Department E&T

Excise and Taxation Officer ETO

Federal Board of Revenue FBR

International Finance Corporation IFC

Large Tax Payer Unit LTU

National Tax Number NTN

National Bank of Pakistan NBP

National Institutional Facilitation Technologies NIFT

Punjab Employees Social Security Institution PESSI

Punjab Revenue Authority PRA

Punjab Revenue Authority PRA

Regional Tax Office RTO

Sales Tax Registration Number STRN

The World Bank Group WBG


Executive Summary


1. Executive Summary1.1. Assignment BackgroundPunjab Investment Climate Project has been prepared by The World Bank Group, upon the requestof the Government of the Punjab (GoPunjab) for supporting efforts to improve the investmentclimate in Punjab province as set out in the Punjab Growth Strategy 2018.

The Government’s vision is to make Punjab a secure, economically vibrant, knowledge-based andcaring province. The Punjab Growth Strategy outlines the path to realizing this vision.

The Investment Climate project has three inter-related objectives, namely, to assist GoPunjab to:

� Develop and implement a coherent provincial investment policy, an effective promotionstrategy and the capacity for generating increased levels of domestic and foreigninvestment;

� Improve the quality and transparency of regulatory governance so as to reduce theadministrative compliance cost for businesses; and

� Promote and generate investments in sectors with the highest growth potential.

The World Bank Group has appointed Ernst & Young Ford Rhodes Sidat Hyder vide contract number7178030 dated 02 June 2016, to perform the assessment and process mapping of business andregulatory environment in Punjab province, as per terms of reference agreed with WBG. Detailedscope of work, approach and methodology, project protocols, work plan and key deliverables havebeen reported in our Inception Report dated 03 June 2016.

1.2. Assignment ObjectivesThe overall objectives of the consultancy assignment are to generate recommendations for and toassist with the implementation of changes which will:

� Make the business environment in Punjab more investor-friendly for both domestic andforeign investors alike, thus increasing investor interest in the Province; and

� Have a significant positive impact on the operating environment for private sectorbusinesses in Punjab.

1.3. Scope of WorkThe table below presents the agreed scope of work as well as the current status of the assignment:

Work to be performed

Aspects to be covered

BusinessRegistration

BusinessRegulation

Mapping of processes P P

Assessment of the regulatory framework to determinethe:

§ instances of duplication of information provision andprocedures

§ the completeness and clarity of the publicly availableinformation

§ linkages and dependencies on other parts of theregulatory environment

P P


Executive Summary


Work to be performed

Aspects to be covered

BusinessRegistration

BusinessRegulation

§ agencies which have long elapsed times forprocessing.

§ the existence of consultative mechanisms

§ competencies and capabilities of the public servants

§ identification of processes and restrictions that hinderfemale investors

Formulating recommendations for beneficial changes P P

� For the purposes of the assignment we consider following forms of business:

§ Companies established under Companies Ordinance, 1984 comprising companylimited by shares & single member company

§ Partnerships/ Association of Persons (AOPs) registered under Partnership Act,1932

§ Sole proprietorships

� For the purposes of this assignment we consider business registration and regulationrequirements at the following levels:

§ Federal level – to the extent of mapping business registration process only

§ Provincial level

§ City / town level

� Based upon our scope of work our assignment covers general business regulations whichare applicable to businesses/ commercial activities across the board. Regulations/requirements specific to any sector or industry have not been covered.

� During our meetings with representatives of city / town level regulators, we were informedthat City District Government or Tehsil Municipal Administration does not deal with anygeneral business registration or regulations, instead they deal with specific regulationsrelated to specific sectors for example meat vendors, wedding halls etc., hence regulatorsat the city / town level were not covered as part of this assignment.

1.4. Contents of Baseline ReportBased upon the scope of work and the agencies identified, our base line report covers the followingaspects:

Business registration

� Number of days, procedures and cost to register business i.e. Company, Partnership andSole Proprietorship

� Number of days, procedures and cost to get NTN and sales tax registration number

� Number of days, procedures and cost to register with EOBI

� Number of days, procedures and cost to register with Labour & Human ResourceDepartment for factories and shops and establishments

� Number of days, procedures and cost to register with PESSI


Executive Summary


Business regulation

� Number of days, procedures and cost to pay professional tax to Excise & TaxationDepartment

� Number of days, procedures and cost to file C-1 schedule of PESSI

� Number of days, procedures and cost involved in inspections by various departments

1.5. Interaction with Organizations involved in Business Registrationand Regulation


Processes and Organizational Overview


2. Processes and Organizational Overview2.1. Processes Overview2.1.1. Steps to Start a Business




2.1.2. Business Registration




2.1.3. Business Regulations




2.2. Overview of organizations involved with Business Registrationand/or Regulation

As defined in Section 1, the scope of work of this assignment covers an examination of the businessregistration process at Federal and Punjab level, while business regulations are covered to theextent of Punjab only. This section presents the organization overview of the agencies responsiblefor the business registration and business regulation process. The following table presents thedepartments involved and their jurisdiction:

Regulator Parent Department / Ministry Jurisdiction

Securities and Exchange Commissionof Pakistan Ministry of Finance

FederalFederal Board of Revenue

Employees’ Old Age BenefitsInstitution

Federal Ministry of OverseasPakistanis and Human ResourceDevelopment

Punjab Employees Social SecurityInstitution

Labour and Human ResourceDepartment

Provincial

Directorate General of Labour Welfare

Punjab Workers Welfare Board

Excise and Taxation Ministry of Excise and Taxation

Directorate of Industries Ministry of Industries, Commerce &Investment

2.2.1. Securities and Exchange Commission of PakistanThe Securities and Exchange Commission of Pakistan governs the incorporation/registration ofcompanies under the Companies Ordinance 1984. Company Law Division of SECP headed by aCommissioner administers the function of registration of companies. Company law Division carryout this function through its field offices, which are known as Company Registration Offices(CROs).Currently, there are 8 CROs situated all over Pakistan in different cities.




2.2.2. Federal Board of RevenueThe Federal Board of Revenue is a semi-autonomous, Federal Agency of Pakistan administering thepayment of taxes. The task of collecting taxes is delegated to FBR’s local field offices i.e. theRegional Tax Offices (RTOs) and Large Taxpayer Units (LTUs).

2.2.3. Employee Old-Age Benefits InstitutionEmployees Old Age Benefits Institution is an autonomous Federal department, administering thepayment of old-age benefits for the people employed in industrial and commercial establishments.EOBI ensures the efficient running of its system through Regional Directorates and Field offices andenforces its jurisdiction through local Beet Officers.




2.2.4. Labour and Human Resource DepartmentLabour and human resource department is concerned with the promotion of healthy labormanagement and industrial relations for greater socio-economic progress and greaterdevelopment. Furthermore, it lays equal stress on their housing, health, safety and protection inorder to make them more committed to their work. The Punjab Labour and Human ResourceDepartment consists of following wings:

2.2.4.1. Directorate General of Labour Welfare

The main objective of the Directorate General of Labour Welfare is the maintenance of industrialpeace and ensuring the welfare of industrial/commercial workforce. This is achieved throughimplementation of labour laws. The directorate undertakes the responsibility and plays a vital rolein:

� Registration of factories under the Factories Act 1934, and

� Registration of shops and establishments under The Punjab Shops and CommercialEstablishment Ordinance 1969.

� Ensure the compliance with other ancillary laws and regulations through inspection offactories, shops and establishments.

2.2.4.2. Punjab Employees Social Security Institution

Punjab Employees Social Security Institution (PESSI) was established under the West PakistanEmployees Social Security Ordinance 1965 (later renamed as Provincial Employees Social SecurityOrdinance in 1970). PESSI helps and ensures the provision of medical care and cash benefits toregistered workers and their dependents in the event of sickness, maternity, employment, injury ordeath. Head Office of PESSI is based in Lahore and perform its functions through sub offices andDirectorates.




2.2.4.3. Punjab Workers Welfare Board

The Worker’s Welfare Board provides a holistic package of services to industrial workers, whichincludes provision of marriage grants, death grants and talent scholarship, establishment andmaintenance of labor colonies and establishment and operation of Workers Welfare Schools invarious districts of Punjab.

2.2.5. Excise and Taxation DepartmentThe Excise & Taxation Department (E&T) collects various taxes and duties and suggests ways andmeans for additional resource mobilization in the Province. One of the main functions of thisdepartment is the collection and assessment of professional tax. The professional tax isadministered under the provisions of The Punjab Finance Act 1977 and the Punjab Professions andTrade Tax Rules 1977. This tax is levied and collected on/from the persons or class of personsengaged in a profession, trade, calling or employment in the Province of the Punjab. E&T performsits functions of collection and assessment of professional tax through Directorates Excise &Taxation. Currently there are 11 directorates.




2.2.6. Directorate of IndustriesDirectorate of industries is the attached department of Ministry of Industries, Commerce &Investment. It has various functions to be performed at provincial level and district level. At districtlevel, among other functions, it is also responsible for registration of firms under Partnership Act,1932. This function is carried through District Offices situated in all 36 districts of the Punjab.


Detailed Baseline Outcomes


2.3. Detailed Baseline Outcomes2.4. Business Registration2.4.1. Registration with Securities and Exchange Commission of PakistanThe Company’s registration process with SECP consist of two major processes i.e. availability ofname and then registration of company under that particular name. Process and requirements foreach of these are detailed hereunder:

2.4.1.1. Availability of Name

To incorporate a company, the applicant seeks the availability of the proposed name for thecompany from the registrar. The applicant furnishes an application in this regard, along with thepayment of a requisite fee for seeking availability certificate for a desired name. Currently there aretwo modes to apply for availability of name i.e. online application and offline application. DetailedBaselines are presented below:

Online Application

Steps Process to be followed Number of days Cost

Step 1 Creation of login ID at SECP’s e-portal and filing ofonline application. 1 day1

Rs. 200 to Rs.700

Step 2

Payment of fee through debit card / onlinetransfer by MCB account holder / by printing thefee challan from the website and paying the fee indesignated branches of MCB Bank.

1 day

Step 3 Examination of application by the Registrar. 1 day

Step 4 Grant of confirmation letter/email for theavailability of name. 1 day

Total days 4 days

Detailed process of availability of name through online application is presented in Annexure-A.

Offline Application


Step 1 Filing of an application with the SECP atCompanies Registration Office. 1 day

Rs. 500 to Rs.1,500

Step 2 Payment of fee through Challan form indesignated branches of MCB bank. 1 day

Step 3 Examination of application by the Registrar. 1 day

Step 4 Grant of confirmation letter/email for theavailability of name. 1 day

Total days 4 days

1 Based on methodology agreed with IFC, for determining the number of days required for each procedure, it hasbeen assumed for simplification that each procedure requires one day for completion, unless it requires morenumber of days.




Detailed process of availability of name through offline application is presented in Annexure B.

2.4.1.2. Registration of Company

After seeking the availability of name through process stated in section 3.1.1.1, company’sregistration process can be initiated. There are two ways to register a company with SECP onlineregistration and offline registration. Detailed baselines are presented below:

Online Registration of company

For online registration there are two steps. First is to obtain digital certificate from NationalInstitutional Facilitation Technologies (NIFT) and second is to apply online through SECP’s e-serviceportal.

Digital certificate from National Institutional Facilitation Technologies (NIFT)

To register a company online it is mandatory to obtain digital certificate for each subscriber tothe memorandum. There are two types of process to obtain digital certificate i.e. Onlineprocess and Manual Process. In Online process applicant can apply online using SECP’s login IDand in manual process applicant need to visit NIFT or NIFT’s counter at CRO. Detailed baselinesare presented below:

Online Process


Step 1 Filling and submission of an online applicationform through SECP’s login ID. 1 day

Rs. 1,845Step 2 Payment of prescribed fee online through creditcard. 1 day

Total days 2 days

Detailed process of obtaining digital certificate through online application is presented inAnnexure C.

Offline Process


Step 1 The applicant fills the Digital signature requestform available at SECP’s website. 1 day

Rs. 1500 t01,800Step 2 Submission of form in the NIFT facilitation center

along with payment of prescribed fee in cash. 1 day

Total days 2 days

Detailed process of obtaining digital certificate through offline application is presented inAnnexure C.

Apply Online Through SECP’s E-Service Portal

For online application of registration applicant submits, application along with scanned copiesof documents through SECP’s e-service portal after obtaining digital certificate from NIFT.Baselines for online registration of company are presented below:





Step 1Filing of an online application through SECP’s e-services portal under digital signatures obtainedfrom NIFT.

1 day

Rs. 2,000 to Rs.40,000,000.

Step 2

Payment of fee through debit card / onlinetransfer by MCB account holder / by printing thefee challan from the website and paying the fee indesignated branches of MCB Bank.

1 day

Step 3 Examination and approval of documents by theRegistrar and Joint Registrar. 1 day

Step 4 Grant of certificate of incorporation by Registrar. 1 day

Total days 4 days

Detailed process of registration of company through online application is presented in Annexure D.

Offline Registration of Company

For offline registration applicant submits application along with prescribed documents byvisiting companies’ registration office. Detailed baselines are presented below:


Step 1 Filing of an application with the SECP by visitingCRO along with prescribed documents. 1 day

Rs. 4,000 to50,000,000

Step 2 Payment of fee through challan form indesignated branches of MCB bank. 1 day

Step 3 Examination and approval of documents by theRegistrar and Joint Registrar. 1 day

Step 4 Grant of certificate of incorporation. 1 day

Total days 4 days

Detailed process of registration of company through offline application is presented in Annexure E.

Fast Track and Swift Company Registration

SECP also facilitates the applicants through its fast track service with additional fee. Through fasttrack the whole process of availability of name or registration of company is completed within 4working hours.

SECP has recently introduced swift company registration scheme to reduce the turnaround time instarting a business and to ease the process of incorporation for the benefit of promotors. The mainfeatures of the scheme are as follows:

� If a company applies online with short memorandum and articles of association placed onthe SECP website and submits the documents by 10 a.m. the company is incorporated onsame day as against two working days. If company submits the documents after 10 a.m.the company is incorporated by 1 p.m. of next working day.

� If the documents are submitted online under Fast track Registration Services with shortmemorandum and articles of association by 3 p.m., the same is processed within 2 workinghours as against 4 working hours.




2.4.2. Registration with Federal Board of Revenue (FBR)

2.4.2.1. Income Tax Registration

Process of Income Tax Registration with FBR is different for individual or Association ofPersons (AoP) and Company. Detailed baselines are presented below:

Individuals


Step 1The applicant visits the facilitation desk at RTO orLTU, where the completeness of documents isensured by facilitation officer.

1 day

NilStep 2

Facilitation Officer fills the registration form inthe system along with the attachment of scanneddocuments.

1 day

Step 3Approval of documents and grant of aconfirmation letter/email for income taxregistration.

1 day

Total days 3 days

Individual can also apply online through FBR’s online portal by creating a User login ID, along withattachment of scanned documents with the application. If the application is approved, theconfirmation email and SMS for grant of registration is communicated to the individual within 1day.

Detailed process of income tax registration (Individual) is presented in Annexure F.

AOPs’ and Companies

For Income Tax registration of an AOP or a Company, member in case of AOP and Principal Officerin case of Company, is required to apply for registration respectively.


Step 1The applicant visits the facilitation desk at RTO orLTU, where the completeness of documents isensured by facilitation officer.

1 day

Nil

Step 2 Facilitation Officer fills the registration form in thesystem along with the attachment of scanneddocuments.

1 day

Step 3 Approval of documents and grant of aconfirmation letter/email for income taxregistration.

1 day

Total days 3 days

Detailed process of income tax registration (AoP or Company) is presented in Annexure G.




2.4.2.2. Sales Tax Registration


Step 1The applicant visits the facilitation desk, wherethe completeness of documents is ensured byFacilitation Officer

1 day

Nil

Step 2 Confirmation of applicant’s identity through IDcard and biometric verification. 1 day

Step 3 Facilitation Officer fills the registration form in thesystem along with the attachment of scanneddocuments and applicant’s photograph.

1 day

Step 4 Assigning of risk score by Risk ManagementSystem and grant of a confirmation letter/emailfor Sales tax registration.

1 day

Total days 4 days

Detailed process of sales tax registration is presented in Annexure H.

2.4.3. Registration with Employees Old Age Benefits Institution (EOBI)The EOBI facilitate organizations to file the application with the institution online or by filing anapplication for registration in person in its local office.


Step 1The employer files an application for registrationonline or in person by visiting Directorate. 1 day

Nil

Step 2 Deputy Regional Officer verifies the applicationsubmitted by employer and forwards to RegionalHead for final approval.

1 day

Step 3 Regional Head approves the application andissues the registration certificate. 1 day

Step 4 Employer collects the registration certificate fromDirectorate. 1 day

Total days 4 days

Detailed process of registration with EOBI is presented in Annexure I.




2.4.4. Registration of PartnershipsDirectorate of Industries is responsible to register partnerships. Detailed baselines are presentedbelow:


Step 1Preparation of Form 1 and Partnership deed onattested stamp paper and signing the documents. 1 day

Stamp Paper FeeRs. 1,000Registration FeeRs. 100

Step 2Payment of prescribed fee in National bank ofPakistan on Form 32-A. 1 day

Step 3Submission of Form 1, partnership deed, CNIC ofall the partners and evidence of payment of fee atDistrict Office by the applicant.

1 day

Step 4 Verification of documents by the District Office 1 day

Step 5Issuance of a registration certificate from DistrictOffice. 1 day

Total Time 5 days

Detailed process of registration of Partnership is presented in Annexure J.

2.4.4.1. Registration with Punjab Employees Social Security Institution (PESSI)Every establishment employing 5 or more workers having salary ranges from Rs. 13,000 to Rs.18,000 are required to register with PESSI. Detailed Baselines are presented below:


Step 1Employer applies voluntarily for registration orSocial Security Officer approaches theestablishment during visit.

3 days

Nil

Step 2

Social Security Officer visits the establishmentand fills “Performa for Survey of Establishment”form under the signatures, stamp or seal ofemployer.

3 days

Step 3 Deputy Director visits the site to verify the formfilled by Social Security Officer. 3 days

Step 4 Director approves the form and issuance ofconfirmation letter. 3 days

Total Time 12 days*

*Note: There are no timelines specified in law during which registration process should beconcluded by PESSI. During our meeting with the representative of PESSI, EY’s team was informedthe whole process takes approximately 12 days, so the duration was divided by the number ofprocesses resulting in 3 days for each process. The time taken by the Area officer to conduct thesurvey and Deputy Director for verification depends upon their discretion, availability of time oralready scheduled visits.Detailed process of registration with PESSI is presented in Annexure K.




2.4.5. Registration with Directorate General of Labour Welfare

2.4.5.1. Registration of Factories

Directorate General of Labour Welfare governs the registration under the Factories Act 1934,through the appointment of Inspectors. For the purpose of this Act, before the commencement ofwork in any factory, the person in charge shall be deemed to be the occupier of the factory.Detailed Baselines are presented below:


Step 1Occupier voluntarily submits the notice ofoccupation or inspector identify factory during hisvisit.

1 day

NilStep 2 The District Officer reviews/verifies the

particulars thoroughly. 1 day

Step 3 Issuance of a registration certificate by DistrictOfficer. 1 day

Total days 3 days

Detailed process of registration of factories is presented in Annexure L.

2.4.5.2. Registration of shops and commercial establishments

Every establishment other than one man shop is required to be registered under The West PakistanShops and Establishment Ordinance 1969. Directorate General of Labour Welfare is responsible toadminister and enforce the ordinance. Detailed baselines are presented below:


Step 1 Filing of an online application through DirectorateGeneral of Labour Welfare’s website 1 day

Rs. 200 to Rs.1,000.

Step 2 Payment of fee through a treasury challan indesignated branches of National Bank of Pakistan. 1 day

Step 3

Inspection of information received online by theDeputy Chief Inspector along with evidence ofpayment of fee and the issuance of a registrationcertificate.

1 day

Total days 3 days

Detailed process of registration of shops and establishment is presented in Annexure M.




2.5. Business Regulations2.5.1. Excise and Taxation Department (E&T)2.5.1.1. Payment of Professional Tax

Excise and Taxation department is responsible for collection of Professional Tax. During the EY’steam’s assessment and meeting with representative of Excise and Taxation department, the teamhas come to the conclusion that there is no periodical filing or other compliance required, exceptfor the timely payment of Professional tax. Detailed baselines are presented below:


Step 1 Taxpayer prepares form 32-A for payment of taxavailable at E&T’s website. 1 day

Amount ofProfessional Tax

ApplicableStep 2 Taxpayer Pays the tax in any branch of National

bank of Pakistan. 1 day

Total Time 2 days

Detailed process of payment of professional tax is presented in Annexure N.

2.5.1.2. Clearance Certificate

If any person requires a clearance certificate from the Excise and Taxation department, that all theamount payable by the person has been paid, can apply for such a certificate by making anapplication to the Excise and Taxation Officer. Detailed baselines are presented below:


Step 1Application for issuance of clearance certificate ismade to Excise & Taxation Officer along with theevidence of payment of professional tax.

1 day

NilStep 2 Issuance of clearance certificate by Excise andTaxation Officer. 1 day

Total time 2 days

2.5.2. Labour and Human Resource DepartmentLabour and human resource department is concerned with the promotion of healthy labormanagement and industrial relations for greater socio economic progress and greaterdevelopment. Furthermore, it lays equal stress on their housing, health, safety and protection inorder to make them more committed to their work. The Punjab Labour and Human ResourceDepartment consists of following wings:

� Secretariat

� Directorate General of Labour Welfare

� Punjab Employees Social Security Institution (PESSI)

� Punjab Workers Welfare Board

� Minimum Wages Board

� Labour Courts

In addition to registration of businesses, there are certain regulatory requirements of PESSI whichare required to be complied with by businesses.




In addition to registration of factories, shops and establishment Directorate General of LabourWelfare through inspection check the compliance with various regulatory requirements.

2.5.2.1. Punjab Employees Social Security Institution (PESSI)

Every employer registered with PESSI is required to file the details of every employee registeredwith PESSI on a prescribed form named “C-1 Schedule”.

The first C-1 schedule filed after registration with PESSI contains the information about employeeseligible for registration in PESSI. Detailed baselines are presented below:


Step 1 Preparation of C-1 Schedule by employer inprescribed form. 1 day

Amount ofcontribution.

Step 2 Preparation of cheque for the amount ofcontribution as per C-1 schedule. 1 day

Step 3 Submission of C – 1 Schedule in PESSI Directoratein person. 1 day

Step 4 Verification by contribution branch of PESSI andissuance of receipt by Accounts section. 1 day

Total time 4 days

Detailed process is presented in Annexure O.

2.5.2.2. Directorate General of Labour Welfare

The main objective of the Directorate General of Labour Welfare is the maintenance of industrialpeace and ensuring the welfare of industrial/commercial workforce. This is achieved throughimplementation of labour laws. The Directorate undertakes the responsibility and plays a vital rolein registration of factories, shops and establishments, however, the Directorate also act as aregulator by ensuring the implementation and compliance of other ancillary laws.

Inspection of Factories

The Directorate through their inspectors carries out the inspection of registered factories.Inspector makes arrangements by duly authorized officers subordinate to him to inspect everyfactory other than a seasonal factory within the area for which he is appointed at least once a year,and every seasonal factory within such area at least once during each season of work, unless in anycase good reasons to the contrary exist and are recorded by him, arrange for such furtherinspections as may appear to be necessary to him or to the authority to whom he is subordinate forensuring that the provisions of the Act, and of these rules are duly observed.

During Inspection, the inspectors check that whether the business is complying with complyingvarious provisions of Factories act 1934. In addition, the Inspector also check the compliance withvarious provisions of other ancillary laws as given in following table:

Law Compliance

Payment of Wages Act 1936

� Maintenance of register of wages

� Maintenance of register of fines

� Maintenance of register of advances

Minimum Wages Ordinance 1961� Maintenance of muster roll (minimum wages

register)

� Issuance of wages slip to workers




Law Compliance

Workers Profit Participation Act � Record of contribution payment

Punjab Fair Price Shops Ordinance 1972 � Record of fair price shop lists as required in theordinance

Inspection of shops and establishment

For ensuring due observance of the provisions of the Ordinance thereunder, the Inspector inspectsthe shops and other establishments within the area of his jurisdiction and the Registers and otherrecords required to be maintained by them, and may call for such other information from theemployer or any such shop or establishment, he may deem necessary.

Every Inspector shall submit a daily report to the Deputy Chief Inspector of his area in duplicateshowing the names and particulars of the establishments inspected, irregularities detected, theaction proposed to be taken and such other information or particulars as may be directed by theChief Inspector from time to time.

During the inspection following are inspected:

� Exhibition of notice of holiday, day of payment of wages and list of festival holidays,

� Fencing and guarding of machinery; and

� Records and registers required to be maintain by employer (Register of employment andremuneration in Form IV, Register of leave in Form V, Inspection Book in Form VI (forestablishments excluding shops).

Detailed process is presented in Annexure P.


Annexures


Annexures


Annexures


Availability of Name through Online Application – Annexure A


Annexures


Notes:

N-1The applicant can create a login ID by using SECP’s E-Services facilities available through followinglink:

https://eservices.secp.gov.pk/eServices/N-2Applicant may pay its fee via debit card, credit card or by printing the fee challan from the websiteand paying the fee in designated branches of MCB Bank.N-3

� The name should be in accordance with the provisions of section 37 to 41 of theCompanies Ordinance, 1984.

� The name should not be prohibited in accordance with section 37 of CompaniesOrdinance 1984. Section 37 of Companies Ordinance, 1984 states that no companyshall be registered by a name which is inappropriate or deceptive or is designed to exploitreligious susceptibilities of people;

� Further a company shall not be registered by a name which is identical to companyalready registered unless such other company has been dissolved and its consent hasbeen granted.

� Section 37 also states that no company shall be registered except with the prior approvalin writing of the Commission, by a name which contains any words suggesting orcalculated to suggest:

§ The patronage of any, past or present, Pakistani or foreign, Head of State;

§ Any connection with the Federal Government or a Provincial Government or anydepartment or authority of any such Government;

§ Any connection with any corporation set up by or under any Federal orProvincial law;

§ The patronage of, or any connection with, any foreign Government or anyinternational organization.

� If the registrar has any ambiguity concerning the name selected by the applicant, theregistrar may ask for further clarification.

N-3.1To avail the name in 4 hours through fast track within same day, it is necessary to submit theapplication before 1:00 PM.


Annexures


Availability of Name through Offline Application – Annexure B


Annexures


Notes:

N-1In case of offline process, the applicant files an application for name availability and attach the copyof the paid fee challan to the registrar of companies at Companies Registration Office (CRO).Currently there are eight CROs for registration of companies in Pakistan and three of them are inthe province of Punjab.N-2Applicant may pay its fee via debit card, credit card or by printing the fee challan from the websiteand paying the fee in designated branches of MCB Bank.N-3

� The name should be in accordance with the provisions of section 37 to 41 of theCompanies Ordinance, 1984.

� The name should not be prohibited in accordance with section 37 of CompaniesOrdinance 1984. Section 37 of Companies Ordinance, 1984 states that no companyshall be registered by a name which is inappropriate or deceptive or is designed to exploitreligious susceptibilities of people;

� Further a company shall not be registered by a name which is identical to companyalready registered unless such other company has been dissolved and its consent hasbeen granted.

� Section 37 also states that no company shall be registered except with the prior approvalin writing of the Commission, by a name which contains any words suggesting orcalculated to suggest:

§ The patronage of any, past or present, Pakistani or foreign, Head of State;

§ Any connection with the Federal Government or a Provincial Government or anydepartment or authority of any such Government;

§ Any connection with any corporation set up by or under any Federal orProvincial law;

§ The patronage of, or any connection with, any foreign Government or anyinternational organization.

� If the registrar has any ambiguity concerning the name selected by the applicant, theregistrar may ask for further clarification.

N-3.1To avail the name in 4 hours through fast track within same day, it is necessary to submit theapplication before 1:00 PM.


Annexures


Obtaining Digital Certificate – Annexure C


Annexures


Notes:

N-1The applicant visits the following link https://epayment-live.niftetrust.com/epayment/ and selectsthe type of application.N-2The applicant attaches the attested copies of the following documents with the request form:

� For Pakistani Nationals

§ Valid Computerized National Identification Card of every subscriber of thecompany.

§ �Company’s Name Reservation Document issued by SECP.

� For non-Pakistani Nationals

§ Valid Passport of every subscriber of the company.

§ One passport sized color photograph, taken within the last 6 months of everysubscriber of the company.

§ Company’s Name Reservation Document issued by SECP.

Payment of fee amounting to Rs. 1,845 is made either through Visa Card or Master Card for onlinesubmission of application and for manual application, payment of fee is made in cash amounting toRs.1500 for normal application and Rs.1800 for urgent application.


Annexures


Registration of Company through Online Application – Annexure D


Annexures


Notes:

N-1

� Fee structure is based upon the share capital of a company.

� Fee in table below is applicable before 31 May 2016 on Online Process.

No of Shares

Normal RegistrationFast TrackRegistrationServices (FTRS)

Registration Cost (Rs)Filling Fee perDocument(Rs)

Fast Track Fee(Rs)

Upto 10,000 shares 2500

600

Fast Track feeis equal toregistrationfee but subjectto maximumfee of Rs.10,000.

Greater than 10,000 butless than or equal to500,000 shares

500 for every additional10,000 shares

Number of shares exceeding500,000 shares.

250 for every additional 10,000shares

*For registration of a company the total amount of fee to be paid shall not exceed ten millionrupees.

� Fee mentioned in table below is applicable from 31 May 2016.

No of SharesNormal Registration

Fast TrackRegistrationServices (FTRS)

Registration Cost (Rs)Filling Fee perDocument(Rs)

Fast Track Fee(Rs)

Upto 10,000 shares 1,000

250 to 600

Fast Track feeis equal toregistrationfee but iscapped at Rs.10,000.

Greater than 10,000 butless than or equal to1,000,000 shares


Greater than 1,000,000 butless than or equal to500,000,000 shares


Number of shares exceeding500,000,000 shares.


*For registration of a company the total amount of fee to be paid shall not exceed Rs. 40,000,000and Documents filing fee is also dependent on amount of share capital.

Fee can be paid through credit card, online fund transfer by MCB account holders or submit to theBank.N-2Following are the documents that need to be submitted to SECP for the incorporation of acompany:

� Copy of national identity card or passport (in case of foreigner), of each subscriber andwitness to the memorandum and articles of association.

� Memorandum of Association

� Articles of Association.

� Form 1((Declaration of applicant for incorporation)


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� Form 21 (Notice of situation of registered office of the company)

� Form 29 (Particulars of first directors of the company)

� Paid challan of the registration fee.

� Digital signatures of the promoters obtained from National Institutional FacilitationTechnologies.

Apart from the above-mentioned documents, to incorporate a public company, the followingdocuments also need to be submitted:

� Form 27 (List of persons consenting to act as Directors)

� Form 28 (Consent of Directors)

Documents are submitted under digital certificate obtained from NIFT.N-3Joint Registrar reviews the documents in detail and if finds it in order issues the certificate ofincorporation.


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Registration of Company through Offline Application – Annexure E


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Notes:

N-1

� Fee structure is based upon the share capital of a company.

� Fee in table below is applicable before 31 May 2016 on Online Registration.


Fast TrackRegistration

Services (FTRS)Registration Cost

(Rs)Filling Fee perDocument (Rs)

Fast Track Fee(Rs)


1,500

Fast Track feeis equal to

registration feebut is capped at

Rs. 20,000.

Greater than 10,000 butless than or equal to500,000 shares


Number of shares exceeding500,000 shares


*For registration of a company the total amount of fee to be paid shall not exceed ten millionrupees.

� Fee mentioned in table below is applicable from 31 May 2016.


Fast TrackRegistration

Services (FTRS)

Registration Cost (Rs)Filling Fee per

Document(Rs)

Fast Track Fee(Rs)


500 to 1200

Fast Track feeis equal to

registrationfee but is

capped at Rs.20,000.

Greater than 10,000 butless than or equal to1,000,000 shares

1,000 for every additional10,000 shares

Greater than 1,000,000 butless than or equal to500,000,000 shares


Number of shares exceeding500,000,000 shares.


*For registration of a company the total amount of fee to be paid shall not exceed Rs. 50,000,000and Documents filing fee is also dependent on amount of share capital.

Fee can be paid in the designated branches of MCB Bank challan forms available at facilitationcounters of CROs and MCB Bank.


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Income Tax Registration with FBR (Individual) – Annexure F


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Notes:

N-1The applicant attaches the following documents with the application:

� For Business Individual

§ Original CNIC

§ Cell phone with a registered SIM Card.

§ Personal Email address

§ Letter head of business

§ Last paid utility bill

§ Ownership / Rent agreement

� For Salaried Individual

§ Current Salary slip

§ Last monthly utility bill

§ Valid email address

§ Cell numberIf any of the above requirements is not fulfilled, the facilitation officer will not start the registrationprocess and will ask the applicant to come again after fulfilling the above requirements.N-2

� The facilitation officer fills the form of registration and enters the complete data.

� Signature and thumb impression of the tax payer is taken by the facilitation officer.

� Following documents are scanned and attached with the registration form::

§ Print of the registration form bearing the signature and thumb impression of thetax payer (If applying in person).

§ Certificate of maintenance of personal bank account in his own name.

§ Evidence of tenancy/ownership of business premises, if having a business.

§ Paid utility bills of business premises not older than 3 months, if having abusiness.


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Federal Board of Revenue (Income Tax Registration) Auditor

AOP / Company Central Registration Office(FBR)

Start

Finish

The confirmation email/sms for grant ofregistration is

communicated within 24hours.

Application approved?

Yes

The confirmation email/sms for refusal of

registration iscommunicated within 24

hours.

No

The facilitation officer atfront desk ensures the

completeness ofdocuments.

The applicant proceeds tothe registration cell for the

review of documents.

The facilitation officer fillsthe registration form and

attaches the scanneddocuments.

(N-2)

A member of an AOP orPrincipal Officer in case of

Company visits with therequired documents.

(N-1)

Income Tax Registration with FBR (AoP or Company) – Annexure G


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Notes:

N-1

In case AOP, the applicant attaches the following documents with the application:

� Original CNIC of the Member.

� Cell phone with a registered SIM Card of Member’s own CNIC (which must not be the sameSIM already entered against his personal registration with FBR).

� Email address belonging to the AOP.

� Certificate of maintenance of bank account in AOP’s name

� Evidence of tenancy/ownership of business premises, if having a business.

� Paid utility bills of business premise not older than 3 months, if having a business.

� Partnership deed, in case of a firm.

� Registration certificate from the Registrar of Firms, in case of a firm.

In case of Company, the applicant attaches the following documents with the application:

� Original CNIC of the Principal Officer.

� Cell phone with a registered SIM Card of Principal Officer’s own CNIC (which must not bethe same SIM already entered against his persona; registration with FBR).

� Email address belonging to the company.

� Certificate of maintenance of bank account in Company’s name

� Evidence of tenancy/ownership of business premises, if having a business.

� Paid utility bills of business premise not older than 3 months, if having a business.

� Registration certificate from the Registrar of Societies, in case of a society.

� Registration certificate from the concerned country, in case of a foreign company.

� CNICs’ of all directors of the company.

� Original letter on letterhead of the company, verifying the Principal Officer and authorizinghim for Income Tax Registration.

If any of the above requirements is not fulfilled, the facilitation officer will not start the registrationprocess and will ask the Member to come again after fulfilling the above requirements.

Principal Officer Includes:

� a director, a manager, secretary, agent, accountant or any similar officer; and

� any person connected with the management or administration of the company uponwhom the Commissioner has served a notice of treating him as the principal officerthereof.

N-2

� The facilitation officer fills the form of registration in the system and enters the completedata.

� The registration form is printed and the signature and thumb impression of the tax payeris taken by the facilitation officer.

� All the documents are scanned and attached with the registration form.


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Sales Tax registration with FBR – Annexure H


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Notes:

N-1� Person means individual or member in case of AoP or Principal Officer in case of

Company.

� The Person applying for AoPs or companies registration should be the same person whoregistered the AoP or company for Income Tax.

� If the Member or Principal Officer who has registered the AoP or company for Income Taxhas changed, the facilitation officer will ask the current member or Principal Officer tomodify Income Tax registration, add himself as a new member or Principal Officer andthen come for the registration of Sales Tax.

Registration of AoP� The applicant attaches the following documents with the application:

§ Original CNIC of the Member.

§ Original letter on the letterhead of the AOP, signed by all members verifying thesaid Member is authorized for Sales Tax registration.

Registration of Company� The Principal Officer attaches the following documents with the application:

§ Original CNIC of the Principal Officer.

§ Original letter on the letterhead of the Company, signed by all Directorsverifying the said Principal Officer and authorizing him for Sales Taxregistration.

N-2Risk Management System (RMS) is used to assign the risk scores. Based upon different variableshigh or low score is assigned to the person. Variables includes Area in which business to beconducted, nature of business, area on CNICN-3If the applicant is assigned a high risk score the application is forwarded to the concerned officer inthe risk management department, where further verification is performed by conducting physicalsurveys by the inspector or the applicant may be called for inquiry if so required.


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Registration with EOBI Auditor

Employer Institution

Start

Finish

The employer submitsdocuments for

registration online.(N-2)

RegistrationCertificate

Deputy Regional Officerverifies the documents

and forwards to theregional head for

approval.

Regional Directorapproves the

documents & issues theregistration certificate

(N-3)

Documents

Employer appliesvoluntarily?

Yes

No

Beat officers conductsan establishment

survey.(N-1)

Theemployer files online

application?

Yes

The employer submitsdocuments for

registration in person.(N-2)

No

Registration with EOBI – Annexure I


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Notes:

N-1Any organization employing five or more employees is liable to be registered with EOBI. In case ofan organization employing less than five workers, a voluntary application can be filed by thatorganization.N-2The institution requires the establishment to submit the documents before registration. Evidence ofthe commencement of establishment shall be attached along with any further documents ifrequired by the Officer.N-3The Deputy Regional Officer before registering an organization, verifies the documents and ifapproved, the documents are forwarded to the Regional Head for a final approval. If the applicationis rejected, the applicant is informed to remove the deficiencies and submit further documents forregistration. The certificate for registration can be collected or dispatched within 2 days ofsubmission of the documents.


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Registration of Partnership

Firm Registrar of Firms

Start

Preparation ofdocuments

(N-1)

Finish

Payment of prescribedfee in any branch of

NBP(N-2)

Submission ofdocuments along withevidence of payment

At district office(N-3)

The firm will alter theundesirable within one

month or send astatement to this effect.

No

Record an entry of thepartnership in theRegister of Firms

Registrar Satisfied?

Form - 1

Yes

Issuance ofRegistration CertificateSigned by registrar of

firms

Partnership Deed

RegistrationCertificate

Registration of Partnership – Annexure J


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Notes:

N-1

Following documents should be prepared before registering a partnership:

� Form 1 (Application Form)

� Partnership Deed on stamp paper of Rs.1,000 only.

Particulars of Form 1 are:� The firm name.

� The principal place or other places of business of the firm.

� The date when each partner joined the firm.

� The names in full and permanent addresses of the partners.

� Duration of the firm.

� Date and signatures of partners or their specially authorized agents

� Declaration by each partner along with attestation

This form must be signed by all partners or their specially authorized agents in this behalf in thepresence of a witness or witnesses who must be either a Gazetted Officer, Advocate, Pleader orHonorary magistrate.

N-2

A registration fee of Rs.100 is to be paid in any branch of National Bank of Pakistan under theprovincial head of C03545- Fees under Partnership Act 1932.N-3The following documents are submitted in person:� Form 1 (Application Form)

� Partnership deed

� CNIC’s of all partners

� Evidence of payment of fee challan

These documents are to be submitted at the district office where the Principal office of the businessis situated.


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Registration with PESSI – Annexure K


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Notes:

N-1

Area officer during its visit identify the establishment liable to be registered.

N-2

Survey of establishment is signed by the following persons:

� Social Security Officer� Employer� Deputy Director/In-charge Sub-officer.


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Registration of Factories – Annexure L


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Notes:

N-1Factory means, any premises, including the precincts thereof, whereon ten or more workers areworking, or were working on any day of the preceding twelve months, and in any part of which amanufacturing process is being carried on or is ordinarily carried on with or without the aid ofpower, but does not include a mine, subject to the operation of the Mines Act, 1923. Factoriesincludes the seasonal factories which means:

� Factory, which is exclusively engaged in one or more of the following manufacturingprocesses, namely, cotton ginning, cotton or cotton jute pressing, the decortication ofgroundnuts, the manufacture of coffee indigo, lac, rubber, sugar (including gur) or tea orany of the aforesaid processes, is a seasonal factory

� The Provincial Government may, by notification in the Official Gazette, declare anyspecified factory in which manufacturing processes are ordinarily carried on for morethan one hundred and eighty working days in the year and cannot be carried on exceptduring particular season or at times dependent on the irregular action of natural forces,to be a seasonal factory for the purposes of this Act.

Occupier of a factory means the person who has ultimate control over the affairs of the factoryprovided that where the affairs of a factory are entrusted to a managing agent, such agent shall bedeemed to be the occupier of the factory

The occupier of a factory employing 10 or more workers engaged in manufacturing process have to apply tothe District Officer Labor for registration under Factories Act ,1934.

N-21- The Notice shall be in “Form-A” containing the following particulars:

� Name of occupier

� Name of factory

� Location of factory

� Full postal address of factory

� Nature of moving power used (As described in Sec 46 (d) of Factories Amendment Act,1944)

� Amount of moving power used

� Nature of work carried on

� Name of manager for the purpose of the Factory Act

� Time of beginning and ending work on each day, showing the period of interval

� Greatest number of persons simultaneously employed anywhere within the precincts ofthe factory on any one day in the year:

§ Permanent staff (including clerical establishment)

§ Men

§ Women

§ Children

§ All other type of labour (including contractor's labour)

� Number of gins ( in case of cotton ginning factories only)

� Date of its functioning


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2- List of workers3- List of Machinery


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Registration of Shops and Establishments – Annexure M


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Notes:

N-1

Every establishment other than one man shop and factories employing clerical staff within factorypremises, is required to be registered with Deputy Chief Inspector of the area within which factoryis situated.

Establishment means:

� Shop;

� Commercial establishment;

� Industrial establishment;

� Private dispensary;

� Maternity home;

� Residential hotel;

� Restaurant;

� Eating house;

� Café;

� Cinema

� Theatre,

� Circus; or

� Other place of public amusement or entertainment, and such other establishments orclass thereof as Government may, by notification in the official Gazette, declare to beestablishments for the purposes of this Ordinance;

Shop means any premises used wholly or in part for the whole-sale or retail sale of commodities orarticles, either for cash or on credit, or where services are rendered to customers, and includes anoffice, a store room, godown, warehouse or place of work, whether in the same premises orotherwise, mainly used in connection with such trade or business;

Commercial Establishment means an establishment which carries on any business, trade orprofession or any work in connection with, or incidental or ancillary to, any business, trade orprofession, and includes:

� a society registered under the Societies Registration Act, 1860 and a charitable or othertrust, whether registered or not, which carries on, whether for purposes of gain or not,any business, trade or profession, or any work in connection with or incidental orancillary thereto;

� establishment wherein there is conducted the business of advertising, commission,forwarding or a commercial agency;

� clerical department of a factory or of any industrial or commercial undertaking;

� an insurance company, joint stock company, bank, brokers’ offices or exchange and officeof lawyers, income-tax practitioners, registered accountants, contractors and engineers;

� such other professional establishment or class thereof as Government may, bynotification in the official Gazette, declare to be commercial establishments for thepurposes of this Ordinance; but does not include a factory, shop, residential hotel,restaurant, eating house, theatre or other place of public amusement or entertainment.


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N-2

Particulars of Form A are:

� Name of the establishment, if any.

� Postal address of the establishment.

� Full name of the employer (including his father’s name).

� Full name of the Manager, if any (including his father’s name).

� Category of the establishment, i.e., whether a shop, industrial establishment, commercialestablishment, residential hotel, restaurant, eating house, theatre or other place of publicamusement or entertainment.

� Total number of employees (state separately the number of men, women and/or youngpersons, if any).

� Date on which the establishment commenced its work.

N-3

Fees submitted through Treasury Challan (Form 32-A) shall be of the following amount:

� Rs.200 in the case of an establishment employing 1 to 5 workers.



� Rs.1000 in the case of an establishment employing more than 20 workers.

N-4

The registration certificate shall be prominently displayed by the employer at the establishment andshall be renewed after every two years on depositing fee.


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Payment of Professional Tax – Annexure N


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Notes:

N-1

Professional tax is levied and collected on/from the persons or class of persons engaged in aprofession, trade, calling or employment in the Province of the Punjab and it shall come into forceunder the Punjab Finance Act, 1977.

Following are the basis to assess Professional Tax liability of eligible persons:

Form of Business Basis to Assess Professional Tax

Companies Paid-up capital

Factories

The number of employees working for thefactories and the employees registered withPESSI are considered as employed by thefactory.

Commercial Establishment The number of employees working for thecommercial establishments.

Import & ExportThe value of goods imported/exported, and thevalue of these goods can be valued throughincome tax return.

Government contractors/builders

Contractors, builders and property developers.who during the preceding financial yearsupplied to the Federal or the ProvincialGovernment or a company or a factory or acommercial establishment or an autonomousor a semi-autonomous organization or anyLocal Authority; goods, commodities andservices of the value.

Other Service Providers Fixed amount of tax (N1.1)

N-1.1

Service Providers` Amount of Tax

Medical Consultant or Specialists/Dental surgeons 1,000

Registered Medical Practitioners 1,000

Other including Homeopaths, Hakims and Ayuervedics 1,000

Auditing firms (per professionally qualified persons) 3,000

Management and Tax Consultants Architects, Engineering, Technicaland Scientific Consultants 3,000

Lawyers 1,000

Members of Stock Exchange 5,000

Motor Cycle/ Scooter dealers 5,000

Motor Car Dealers and Real Estate Agents 10,000

Recruiting Agents 10,000

Carriage of goods and passengers by road 2,000


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Service Providers` Amount of Tax

Health Clubs and Gymnasiums 2,000

Jewelers, departmental stores, electronic goods stores, cableoperators, printing presses and pesticide dealers 1,000

Tobacco vendors 1,000

Wholesalers 2,000

N-2

Form of Business Documents to be submitted

CompaniesForm-A along with the application. Paid-upcapital can be verified through Form – A, whichis submitted to SECP by the company.

FactoriesProof of workers employed and registered withPESSI should be furnished to determine theamount of tax

Commercial EstablishmentProof of workers employed and registered withPESSI should be furnished to determine theamount of tax.

Import & Export

Proof of income tax return should be furnishedto determine the value of goodsimported/exported for the amount of tax to belevied.

Government contractors/builders Proof of value of services provided and thevalue of contract.

N-3

Excise and Taxation Officer sends the 1st notice in which following documents are demanded forassessment of tax within period specified in the notice:

§ Date of opening of the office with documentary evidence.

§ Photo copy of incorporation certificate if it is an incorporated company.

§ Paid-up capital of the company with documentary evidence i.e. form “A” acknowledged bySECP.

§ Value of import / export during the years with documentary evidence.

§ Year wise value of work done / Services / Supplied goods to the Federal/Provincial/SemiGovernment department or a company or a Factory or a commercial establishment or anautonomous or semiautonomous or semiautonomous organization or any local authority,with documentary evidence.

§ Number of employees.

§ 1st and last income tax returns, acknowledge by Income Tax Department.

§ Professional Tax receipts if paid any, during last years.

N-4

Person having received the notice responds by following:

§ By making an application for review of assessment

§ By making an appeal to Director Excise and Taxation


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N-5

Excise and Taxation Inspector issues 2nd notice on expiration of time stipulated in 1st notice.

3rd notice is issued after expiration of time stipulated in 2nd notice and final opportunity is given tothe assesse to be heard.

If assesse does not make any action within time stipulated in notice, Excise and Taxation officer isauthorized for attachment of business.

For attachment of business Excise and Taxation Officer issues a notice at least 21 days beforeattachment under the Land Revenue Act


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Filing of C-1 Schedule with PESSI – Annexure O


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Inspection of Factories – Annexure P


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Notes:

N-1Inspector and Chief Inspector:

The Provincial Government may appoint such persons as it thinks fit to be Inspectors for thepurposes of this Act within such local limits as it may assign to them respectively.

The Provincial Government may appoint any person to be a Chief Inspector, who shall, in additionto the powers conferred on a Chief Inspector under this Act, exercise the powers of an Inspectorthroughout the Province.

No person shall be appointed to be an Inspector or a Chief Inspector having been so appointed, shallcontinue to hold office, who is or becomes directly or indirectly interested in a factory or in anyprocess or business carried on therein or in any patent or machinery connected therewith.

Every Chief Inspector and Inspector shall be deemed to be a public servant within the meaning ofthe Pakistan Penal Code (XLV of 1860) and shall be officially subordinate to such authority as theProvincial Government may specify in this behalf.

Inspection may also be conducted by District Magistrate. Where an inspection is made by theDistrict Magistrate, he shall send a copies of the report to the Chief Inspector and the Inspector ofFactories of the area concerned, authorized in this behalf for such action as may be considerednecessary.

N-2

On receipt of list of irregularities from inspector, occupier/ manager takes steps to removeirregularities. Inspector during its next inspection reviews the steps taken by management and giveits recommendations on appropriateness of occupier’s actions.

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The World Bank Group · 2018-09-25 · 1.1. Assignment Background Punjab Investment Climate Project...

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Transcript of The World Bank Group · 2018-09-25 · 1.1. Assignment Background Punjab Investment Climate Project...