Pakistan ISP founder’s guide · Licensing
Local Loop License in Pakistan: Company, Fees & Launch Guide
From the first company filing to your first lawful customer connection: a practical roadmap for the CEO, finance team and network team.
Start with the business decision
A Fixed Local Loop (FLL) license is the regional route for an operator planning a fixed access network. It is a larger investment than a district Internet class license: the plan must fund infrastructure, mandatory services and a staged rollout. Apply for the actual PTA telecom region, which is not simply a city or province. Separate regional applications and fees apply when expanding.
Use a private limited company with at least two members for this guide. PTA’s September 2026 OASIS requirements explicitly exclude single member companies, firms, trusts, NGOs and government organizations from LL applications. An existing SMC needs to complete conversion and update SECP records before filing. Public companies may also qualify; private limited is not the only eligible corporate form.
The standard FLL template has a 20-year term. If upgrading a district Internet license in the same telecom region, the current FLL checklist provides for withdrawal of that class license when the LL commencement certificate is issued. For another region, follow the prior-discontinuation and withdrawal requirements. Settle outstanding dues and reporting first. Sources: PTA FLL checklist and OASIS requirements.
1. Register the company and make it application-ready
- Agree ownership and capital. Record the founders, shareholding, directors, CEO, registered office and source of funds. Use at least two members and two directors for the private company route; plan equity against the whole project cost. SECP’s SMC nominee categories include spouse, parents, siblings and children.
- Create SECP LEAP accounts and reserve the name. Choose names that meet SECP rules, submit the reservation/incorporation process and pay the generated challan. Resolve name objections before using the name in contracts.
- File incorporation. Prepare identity details, office/contact information, capital and share subscriptions, directors’ consents/declarations, Memorandum and Articles of Association and SMC nominee particulars where applicable. Include foreign-subscriber documentation or approvals where required. Make the principal line of business adequately cover the proposed telecom/Internet services.
- Collect the incorporation output. Keep the incorporation certificate and approved Memorandum/Articles; verify the company name, registration number, ownership and officers across all records. Incorporation creates the company; PTA licensing and commencement are separate operating permissions.
- Complete finance setup. Verify FBR tax registration/NTN and applicable tax obligations, open the company bank account, document paid capital and funding commitments, and maintain accounts. For LL, provide tax registration and active-taxpayer status as the checklist requires.
- Prepare fresh PTA records. Obtain SECP certified true copies issued within three months: certificate, Memorandum/Articles, Form A and Form 9 as requested by PTA. If a newly incorporated company has not received Form 9/A, use PTA’s prescribed notarized PKR 100 stamp-paper undertaking rather than inventing a substitute. Complete later filing obligations within the prescribed timeframe.
- Create the OASIS organization profile. Upload company records and director/shareholder/contact details at PTA e-services. The current organization requirements call for CNIC verification through NADRA e-Sahulat with the PTA tracking ID, and embassy-attested foreign passports. Organization-profile approval is not a license grant.
SECP fees depend on nominal share capital, filing mode and the chosen process. Use the official fee calculator and actual challan; keep name reservation, incorporation, certified copies, stamp paper, professional charges and taxes as separate budget lines. Do not reuse old advertised incorporation prices.
2. Budget the license and the business separately
| Cost | Amount / basis | Payment point |
|---|---|---|
| Application processing | PKR 200,000 · non-refundable | Before application; attach proof |
| Initial license | USD 10,000 or PKR equivalent | After approval, before effective date |
| Annual license fee | 0.5% of the revenue base defined in Article 4 | Under the executed license |
| R&D contribution | 0.5% of the defined revenue base | Under the executed license |
| USF contribution | 1.5% of the defined revenue base | Under the executed license |
| Other regulatory costs | Applicable spectrum, numbering and Appendix 2 charges | As applicable to service design |
Upfront formula: PKR 200,000 + (USD 10,000 × applicable NBP TT selling rate), per Pakistan telecom region, before other charges and business setup. The September 2026 checklist specifies the rate on the working day preceding deposit. Generate the current PTA challan; avoid older guides quoting a USD 500 processing fee. AJ&K/GB has separate templates and terms.
The annual percentages use the license-defined revenue base and permitted deductions, not net profit. Article 4 permits specified inter-operator costs and paid PTA/FAB mandated payments, with exclusions. Have finance apply each contribution clause and due date separately; do not assume every expense is deductible. Sources: current FLL checklist Annexure B and license Article 4.
Total launch budget = SECP and documentation + PTA fees + equipment and access network + upstream/last-mile setup + sites and permissions + security and compliance + payroll and working capital. Ask your CTO for supplier quotations and finance for a cash-flow model. No single license fee is the total cost of launching an ISP.
3. Timeline and responsibility matrix
These preparation and build ranges are internal planning estimates, not SECP/PTA service guarantees. PTA evaluation, queries, external verification and site readiness can extend the critical path. The current funding checklist requires a three-month evidence period: account for this before promising a filing date.
- Company
- Funding
- Application
- License
- Build & test
- Commencement
- Customers
| Stage | Owner | Planning window | Exit gate |
|---|---|---|---|
| Choose the route | CEO / legal | 2–5 working days | Confirm geography, ownership eligibility and service scope before spending. |
| Register the company | Company secretary | 1–2 weeks | Reserve name, file incorporation and obtain company records. |
| Prepare tax and banking | Finance | At least 3 months of funding evidence | Complete tax registration, open the company account and document project funding. |
| Build the application | Technical / finance / legal | 2–4 weeks | Sign plans, refresh certified copies and submit a complete indexed pack. |
| PTA evaluation and grant | Authorized representative | PTA-controlled; no fixed duration assumed | Answer queries, receive approval, pay grant fees and execute the license. |
| Build and certify | CTO / compliance | Plan 3–9 months after grant | Deploy approved systems, test service, submit notice and obtain commencement certificate. |
| Launch and report | CEO / operations | After commencement certificate | Activate customers and track ongoing obligations. |
The standard November 2024 FLL template requires system deployment and mandatory-service commencement within 18 months of the effective date. Its rollout table specifies 300 broadband connections in each of four district/tehsil milestones at 12, 24, 36 and 48 months from commencement; verify the locations and Appendix 1 in your issued license. Submit the annual rollout status by 31 January. These are obligations, not an application-processing timeline.
4. Build one complete application pack
Use the current official checklist and its annexure formats as the filing authority. The categories below are a preparation inventory; conditional items and further PTA queries must also be satisfied. Keep a document register with owner, signature, certification date and upload reference.
Corporate and identity
- Incorporation certificate; Memorandum and Articles with the correct principal business.
- Fresh SECP certified Form A and Form 9, or prescribed new-company undertaking where applicable.
- Signed shareholder list with equity, nationality, identity and contact details; directors and focal-person list.
- Readable CNIC/passport copies and the required notarization, verification or embassy attestation.
- Board resolution and authorized signatory details; company letterhead, seal and office/contact details.
- OASIS organization-profile documents and application tracking reference.
Technical and commercial
- Key-management qualifications, relevant experience and certifications.
- Network design, proposed coverage, NOC/PoP and connectivity to licensed providers.
- Equipment inventory with make, model, quantity/cost and deployment plan.
- Project objectives, market demand, competitors, target subscribers, tariff/packages and customer-retention plan.
- Security and applicable telecom-equipment compliance plan.
- Detailed network diagram; equipment/project-cost Annexure E; technical-plan Annexure F and implementation milestones.
- Group/joint-venture/consortium participation certificate where applicable.
Finance and legal
- Application letter, completed checklist, fee challan and payment evidence.
- Initial project-cost estimate, funding source breakdown and details of other projects/businesses.
- Bank balance at least equal to estimated project cost throughout the preceding three months; statement issued no more than ten days before submission.
- Alternate funding evidence meeting checklist rules: sponsoring-director funds/assets, eligible related-company accounts/statements, or financial-institution intention letter/term sheet.
- Equity at least 20% of estimated project cost; other-project statement, including a nil statement if appropriate.
- Tax registration certificate and active-taxpayer status; existing/associated license reporting and dues clearance.
- Notarized PKR 100 stamp-paper undertaking (G), special power of attorney (H) and representative affidavit (I).
Submit through PTA OASIS using the correct category and geography. Keep receipt IDs, uploaded versions and a log of PTA questions. Answer technical and financial queries with matching revised documents. Pay the initial fee after approval in the manner PTA specifies, and keep the signed license and payment confirmations.
5. Move from license grant to commencement
A license grant does not by itself authorize immediate customer service or collection of service payments. Both templates require a PTA commencement certificate. Give PTA 30 days’ prior written notice of the intended launch and cooperate with its system investigation and certification process.
- Secure lawful connectivity and access. Execute licensed-upstream and infrastructure agreements. Obtain site, right-of-way and applicable equipment/radio approvals. Build within your licensed region and meet mandatory-service and rollout conditions. An FLL license does not automatically authorize every wireless or spectrum use.
- Build operational controls. Establish subscriber identity records, service contracts, transparent tariffs, billing and complaints handling. Implement quality monitoring, access security, backups, incident response and required traffic/session/log records. Map retention and reporting to your issued license and current security rules; a billing product alone does not establish compliance.
- Approve contracts and test the system. Submit the standard customer service contract for PTA approval. Test mandatory services, coverage and network readiness against the approved application. Record connectivity, service-quality, billing, security and failover tests.
- Request commencement. Submit the notice and PTA’s current commencement application/evidence requirements. Prepare the as-built network, equipment/location inventory, test results, supplier agreements, required approvals and compliance evidence for review. PTA may request additional material; the application checklist is not the commencement checklist.
- Close observations and receive the certificate. Record corrections, obtain the commencement certificate and only then enable commercial customer service/payment collection. Track your first-year customers, ongoing fees, corporate/tax filings and license reporting with named owners.
For operational preparation, see LEA compliance workflows and ISP billing in Pakistan. Radnex supports operating workflows; licensing decisions and approvals remain with the regulator.
CEO launch checklist
Tick items as your team completes them. Progress stays in this browser on this device. The printed guide includes the checklist.
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Official sources and scope
This guide covers the Pakistan Fixed Local Loop route using a multi-member private limited company. Fees and conditions may change; the current PTA notice, checklist, challan and executed license control. Planning ranges are Radnex estimates. AJ&K/GB, foreign ownership and other license categories need their own requirements.