Opening a food business in Pakistan involves three separate registrations that people often confuse: the business itself, the tax numbers, and the food licence. They are issued by different bodies, and one does not imply another.
Step 1 — choose a business structure
| Structure | Registered with | Suits |
|---|---|---|
| Sole proprietorship | FBR (NTN only) | One owner, small outlet, simplest and cheapest |
| Partnership (AOP) | Registrar of Firms + FBR | Two or more owners sharing profits |
| Private limited company | SECP | Outside investment, multiple outlets, limited liability |
Most single restaurants start as a sole proprietorship because it needs no incorporation — an NTN in the owner’s name is enough to trade. The reason to incorporate is limited liability and the ability to take investment, not the ability to sell food.
Step 2 — get an NTN
The National Tax Number is issued by the Federal Board of Revenue and registered through IRIS, the FBR’s online portal. For a sole proprietor it is tied to your CNIC.
- You need it once your annual income passes the filing threshold.
- Delivery platforms generally ask for it, and some suppliers will not invoice without one.
- Being on the Active Taxpayer List matters commercially: non-filers face higher withholding on a range of transactions.
Step 3 — provincial sales tax on services
Restaurant service is taxed provincially, not federally, so you register with the revenue authority of the province you trade in.
| Province | Authority |
|---|---|
| Punjab | Punjab Revenue Authority (PRA) |
| Sindh | Sindh Revenue Board (SRB) |
| Khyber Pakhtunkhwa | Khyber Pakhtunkhwa Revenue Authority (KPRA) |
| Balochistan | Balochistan Revenue Authority (BRA) |
| Islamabad Capital Territory | Federal Board of Revenue (FBR) |
Rates differ by province and several offer a reduced rate for payments made by card or digitally — a deliberate nudge toward documented transactions. Check the current rate with your authority; it moves.
Step 4 — the food licence
This is the one that actually permits you to sell food, and it is issued by the food authority for the province your kitchen is in.
| Province | Authority | Statute |
|---|---|---|
| Punjab | Punjab Food Authority | Punjab Food Authority Act 2011 |
| Sindh | Sindh Food Authority | Sindh Food Authority Act 2016 |
| Khyber Pakhtunkhwa | KP Food Safety & Halal Food Authority | KP Act 2014 |
| Balochistan | Balochistan Food Authority | Balochistan Food Authority Act 2014 |
Expect an inspection of the premises, a requirement that food handlers hold medical fitness certificates, and conditions on storage, water and waste. A licence covers the premises it was issued for — a second outlet needs its own, and one in another province needs one from that province’s authority.
Step 5 — the local permissions people forget
- Trade licence or NOC from the local municipal authority or cantonment board, depending on where you are.
- Signage permission, which is separately chargeable in many cities.
- Fire safety clearance for larger premises.
- Environmental NOC if you are running significant kitchen extraction.
- A tenancy agreement in the business name, which the food authority and the bank will both ask to see.
If you are cooking from home
Home kitchens are not exempt. Selling food to the public is selling food to the public, and the provincial food authorities have been explicit about registering home-based food businesses. The practical difference is scale, not obligation.
Start with the food authority and ask what applies to a home kitchen in your city — several run a lighter registration for small home operations. Get the NTN once you pass the income threshold.
A realistic order of operations
- Decide the structure. Sole proprietorship unless you have a reason not to.
- Register the NTN with the FBR — most other things ask for it.
- Secure the premises and get the tenancy agreement in the right name.
- Apply for the food licence. Start early; it involves an inspection.
- Register for provincial sales tax on services.
- Collect the municipal permissions for your city.
- Open a business bank account.
- Then list on delivery platforms — they will ask for the licence and the NTN.
Common questions
What licence do I need to open a restaurant in Pakistan?
A food licence from the food authority of the province your kitchen is in — the Punjab Food Authority, Sindh Food Authority, KP Food Safety & Halal Food Authority, or Balochistan Food Authority. You will usually also need a municipal trade licence or NOC.
Do I need to register a company to open a restaurant in Pakistan?
No. Most single restaurants trade as a sole proprietorship, which needs only an NTN from the FBR. SECP incorporation is for limited liability and outside investment, not for permission to sell food.
Do home-based food businesses need a licence in Pakistan?
Yes. Selling food to the public requires registration with the provincial food authority regardless of whether you cook at home or in a commercial kitchen. Several authorities run a lighter registration path for small home operations — ask yours what applies.
Which sales tax applies to restaurants in Pakistan?
Sales tax on services, charged provincially — PRA in Punjab, SRB in Sindh, KPRA, BRA, or the FBR in Islamabad Capital Territory. Several provinces offer a reduced rate on card and digital payments.
Does a food licence from one province cover another?
No. Food safety is a provincial subject, and a licence covers the premises it was issued for. A second outlet needs its own licence, and one in another province needs it from that province’s authority.