We welcome all innovative & technology enterprises:

Startups

R&D Facilities

Academia

Tech Companies

SMEs

Venture Capital Firms

Tech Corporations

Venture Capital Firms

SMEs

Startups

R&D Facilities

Academia

INCENTIVES

Exemption from all taxes under the Income Tax Ordinance, 2001

Tax on profits & gains, income tax, turnover tax, withholding tax, capital gains tax, income tax & withholding tax on dividend income.

Exemption from Tax on Import of Capital Goods

Exemption from Customs Duty on all Capital Goods under Customs Act 1969.

Dividend Income and Capital Gains

For any venture capital fund (whether local or foreign) derived from investments in the Zone Enterprises.

Exemption from Property Tax

Subject to the Capital and Provincial Development Authorities.

Exemption from Sales Tax under the Sales Tax Act, 1990

Subject to Federal and Provincial Tax Collection Authorities.

Special Forex Currency Account

Fully Repatriable Investment, Profits and Dividends

Overseas payments permitted without any constraints

Ease of Opening and Maintaining Forex Accounts

WHO CAN APPLY

Startup

Employees: 1-20
Revenue: PKR 500 Mn

SMEs

Employees: 21-250
Revenue: PKR 500-1000 Mn

Large Enterprise

Employees: 251-1000
Revenue: PKR 1-16 Bn

Anchor Enterprise

Employees: 1000+
Revenue: PKR 16 Bn

Eligibility Criteria

Zone Enterprise will be evaluated based on their contributions to Pakistan’s technology sector, with factors, such as R&D, local job creation, technology
transfer, human capital development, exports growth, import substitutions, technology development, and other relevant areas. For a more detailed
framework, please refer to STZA (Qualifications and Approval) Rules, 2021 ANNEXURE IV and Guidelines for Zone Enterprises.

Application Guidelines

  • Registered as a legal entity in Pakistan (association of persons, consortium, a body corporate formed or incorporated by or under any law in force, company, corporation, society, modaraba, Real Estate Investment Trust (REIT), Government, trust, partnership, or any juridical personality).
  • The Applicant is required to be registered as a legal entity incorporated under the laws of Pakistan as a special purpose company.
  • Office space in a notified Special Technology Zone (STZ).
  • Purpose-built facility in a notified STZ: to be built/constructed by the Applicant or the Zone Developer for the Applicant, as applicable.
  • Application Cover Letter
  • Application Checklist
  • Financial Proposal
  • Technical Proposal
  • Business plan
  • Strategic Objectives commitments
  • Legal Documentation (incorporation documents, NTN Certificate, authority letter, board resolution, Undertaking on stamp paper, authorization letter).
  • Start-ups: 20,000
  • SMEs: 200,000
  • Large Enterprises: 500,000
  • Anchor Enterprises: 1,000,000
  • Purpose built facility: 1,000,000

Note: Above mentioned prices are in PKR.

  • An applicant needs to submit online application though One Window Portal.
  • An applicant needs to submit physical copies of application to STZA main office.
  • An applicant needs to submit (3) physical copies of the application to STZA’s main office.
Note: Submission of both online and physical application is necessary for further processing.
  • An applicant can withdraw application after specifying the reason and justification.
  • Same Applicant can file after a lapse of six (6) months from the date of confirmation of withdrawal.
  • In case an Applicant withdraws its Application, the paid Application fee shall not be refunded.
What are the criteria to be selected as Zone Enterprise?
  • The Applicant must be registered as a legal entity in Pakistan such as registered association of persons, consortium, a body corporate formed or incorporated by or under any law in force, company, corporation, society, modaraba, Real Estate Investment Trust (REIT), Government, trust, partnership, or any juridical personality.
  • Foreign legal entities who plan to start their technology business operations in Pakistan are required to incorporate/register legal entities in Pakistan for consideration and evaluation of their application by STZA.
What are the Zone Enterprise Application Categories?
  • Application for a Zone Enterprise License for office space in a notified Special Technology Zone (STZ): This type of License is best suited for technology businesses that require ready to use office space in a STZ and aim to take advantage of the ecosystem in special technology zones.

  • Application for a Zone Enterprise License for a purpose-built facility in a notified STZ: This type of License is best suited for technology businesses that require a self-built facility in a STZ (to be built/constructed by the Applicant or the Zone Developer for the Applicant, as applicable) to cater to its business’ unique infrastructure related requirements and aim to take advantage of the ecosystem in STZs.
What are the documents required for submission of Zone Enterprise Application?

Below mentioned is the list of documents required for the submission of Zone Enterprise Application

  • Application Cover Letter
  • Application Checklist
  • Financial Proposal
  • Technical Proposal
  • Business plan
  • Strategic Objectives commitments
  • Legal documentation (incorporation documents, NTN Certificate, authority letter, board resolution, Undertaking on stamp paper, authorization letter)

Note* STZA may request additional documents from the applicant if required

What is the Zone Enterprise Application fee?

SCHEDULE OF FEES FOR ZONE ENTERPRISE APPLICATIONS

 

ZONE ENTERPRISE (OFFICE SPACE)

ZONE ENTERPRISE CLASSIFICATION

NO. OF EMPLOYEES OR REVENUE (PKR)

APPLICATION FEE (PKR)

Start-ups

 1 – 20 or < 500 M

20,000

SMES

21-250 or 500 M to 1 B

200,000

Large Enterprises

25 1- 1,000 or 1B to 15 B

500,000

Anchor Enterprises

1000+ or > 15 B

1,000,000

ZONE ENTERPRISE (PURPOSE BUILT FACILITY)

N/A

N/A

1,000,000

How to submit the Zone Enterprise Application?
  • Applications shall be submitted on STZA’s website at www.stza.gov.pk, along with all supporting documentation. Unless otherwise notified, three (3) physical copies of the identical online Application along with all supporting documentation must be submitted to STZA within five (5) days of submission of the online Application (including any additional information as may be required from time to time); failure to submit physical copies of the Application may result in the Application being discarded, at the discretion of STZA. The Applicant shall receive an acknowledgement of Application from STZA upon receipt of the electronic and physical copies of the Application.
  • In event of a conflict or contradiction in the contents of the electronic and manual submissions, the contents of the electronic submission shall be considered authoritative and shall take precedence over any manual submission.
  • Applications in physical form should be sent to the following address, unless otherwise specified on STZA’s website: One Window Department Special Technology Zones Authority 16th Floor, New State Life Tower Blue Area, Islamabad
Can I withdraw the Zone Enterprise Application?

An Applicant may withdraw an Application at any time by providing a written Application to STZA, specifying the reasons and justification for withdrawal of the Application. In case an Applicant withdraws its Application, the paid Application fee shall not be refunded. STZA shall not be liable in any manner whatsoever in respect of the decision of the Applicant for withdrawal of the Application, and the sole responsibility and any liabilities in respect thereof shall solely rest with the Applicant.

A new Application for a license with the same or similar purpose by the Page 5 of 23 same Applicant may only be filed after a lapse of six (6) months from the date of confirmation of withdrawal of the Application.

Technologies for Zone Enterprises

Artificial Intelligence

Machine Learning

Big Data Analytics

Quantum Computing

Cloud Computing

Internet of Things (IoT)

Robo Advisory

Distributed Ledger Technology (DLT)

Natural Language Processing (NLP)

Augmented Reality (AR)

Virtual Reality (VR)

Robotics

Wearables

Mobile Payment

Fintech

Block Chain

Biotech

Genomics

Science and Technology Institution

Technology Skill Development Centers

Telemedicine

Biomedical Technology

3D-Printing

Electric Vehicles

Automobiles

Sustainable and Renewable Energy

Green Energy

Agri-Tech

Converging Technologies

ICTS

IT and ITeS

Nanotech

Medical Devices

Pharmaceutical

Creative Industries

Ed-Tech

Semiconductors

E-commerce

Satellites

Electronics

Smart Phones

Laptops

Fine Chemicals

New Materials

Precise Instruments

Environmental
Technologies

Tertiary Industries

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

FAQs

What is a Zone Enterprise?

The term refers to any public, private, or public-private Person developing, operating and managing a technological enterprise within STZ and licensed as such by the Authority. A Zone Enterprise may develop and/or operate its facility or physical infrastructure for its own use; however, it cannot sublease or rent-out the facility to another Zone Enterprise. A Zone Enterprise may also apply for office space in a STZ.

What are the criteria to be selected as a Zone Enterprise?

Zone Enterprises will be evaluated based on their contributions to Pakistan’s technology sector, with factors such as R&D, local job creation, technology transfer, human capital development, exports growth, import substitution, technology development and other relevant areas. For a more detailed framework, please refer to following documents available on official website:

  1. STZA (Qualification and Approval) Rules, 2021.
  2. Application Guidelines for Zone Enterprises.
What documents will you need to apply for a Zone Enterprise License?
Interested Zone Enterprises will be required to submit an application, along with supporting documentation, which are detailed in the Application Guidelines for Zone Enterprises,
What is the overall fee structure for Zone Enterprises?
Zone Enterprises are required to pay an application processing fee, initial and annual license fee, and any other fee as may be notified by Authority for filing of supplementary applications under applicable regulations. STZA reserves the right to revise the applicable fees and charges at any time, subject to prior notification on STZA’s website.
What is the Application Fee for Zone Enterprises?
The Application Processing Fee for Zone Enterprises depends on the size or stage of the Zone Enterprise as well as the category (or type) of the Zone Enterprise. These fees go towards application processing and is non-refundable. Applicants are requested to refer to Application Guidelines for Zone Enterprises for further details.
What happens once the license is expired after 10 years? Do companies have to reapply to avail the benefits or will all benefits and exemptions go away? What will happen to the office space?
After 10 years, the exemptions will cease and taxes would return to normal, however, the business may continue to operate in the STZ, subject to renewal of the license on such terms as prescribed by the Authority. STZA may also introduce a follow-up regime for additional benefits that may be activated upon renewal of the license. Be that as it may, the same company that has received the benefits once, cannot avail them again through renewal or re-application in current legal framework.
If a group of companies (a collection of parent and subsidiary companies) want to apply for a license, would they have to do so separately or can they apply collectively as a group?

The companies concerned may form a new company with a back-end joint venture or shareholders agreement to join a STZ, or one of the companies may become the Zone Developer and the others may join as Zone Enterprises under the umbrella of that Zone Developer. The structuring of companies is entirely up to the businesses intending to apply for licenses in a STZ. However, it shall be noted that the incentives will only be applicable to that legal entity or set of legal entities which are licensed by the Authority and are operating within the STZ, activities being carried outside of STZ shall not be subject to any incentives.

What will STZA One Window Facility do?

The One Window facility will comprise of relevant entities of Federal, Provincial or Local Governments, for facilitation of the Zone Developers and Zone Enterprises to lodge standardized information and documents with a single-entry point to fulfill the requirements under the STZA Act, Rules or Regulations including the establishment, development, execution, operations, functioning and management of STZs. The facility is currently under development and once completed, it will provide a single physical and digital interface for submission of all applications and various facilitation requests to STZA including submission of applicable fees. The facility will be integrated with other government departments to automate and streamline the provision of Government services to the end users. Applicants and licensees will be able to track and monitor the status and outcome of their requests online through their respective accounts on the STZA’s One Window portal without the requirement for physically visiting Government offices, where possible.

Would there be absolute/complete exemption on all taxes once licensed by the STZA?

No. The tax benefits that would be provided to Zone Developers and Zone Enterprise are explicitly mentioned in sections 20 and 21 of the Special Technology Zones Act, 2021 and shall become operational only after appropriate legislative amendments relating to the incentives are made under applicable tax laws such as Income Tax Ordinance, Sales Tax Act etc.
At present, the following tax incentives are available for successful applicants under STZA:

a. Profit and gains are exempted from tax for a period of 10 years under the Income Tax Ordinance, 2001.

b. Minimum turn over tax is exempted for a period of 10 years under the Income Tax Ordinance, 2001.

c. Dividend and long-term capital gains of venture capital funds from their investment in Zone Enterprises only are exempted from tax for a period of 10 years under the Income Tax Ordinance, 2001.

d. Customs Duties, income tax and sales tax are exempted on import of capital goods for a period of 10 years under the Customs Act, 1969, Income Tax Ordinance, 2001 and Sales Tax Act 1990.

e. Zone Enterprises and Zone Developers are eligible for opening of Special Forex Accounts under the State Bank of Pakistan regulations which provided certain benefits to its holders including no requirement of conversion of US Dollars to PKR.

Would incentives given by STZA be applicable in the Provinces too?

Yes. The tax incentives granted under STZA license would be applicable in all STZs established by the Authority across Pakistan. In addition, Provinces are at liberty to provide additional tax incentives through changes in their respective tax laws. These will be updated on our website from time to time as they are announced by the Provinces.

Will companies be exempt from Provincial sales tax on services if they are operating in Provinces?

At present, the companies falling under the STZA regime are not exempted from Provincial taxes including Provincial sales taxes.

Will the companies get furnished office space or will we have to furnish it ourselves?

Office spaces on both models may be available depending on the business model of the Zone Developer. For furnished offices, you may utilize the co-working spaces available within STZs. For any other types of offices, fit-out and furnishing will be the responsibility of the Zone Enterprise.

When do the tax benefits commence?
The tax exemptions and other benefits under the Act, Rules and other documents will only commence from the date of grant of license in case of Zone Enterprises, and from the date of signing of Development Agreement in case of Zone Developers. A Zone Enterprise or Zone Developer will not be allowed to claim exemptions retrospectively.
How do I submit an Application for a Zone Developer or a Zone Enterprise?

Applications shall be submitted through the One Window Application Portal on STZA’s website at www.stza.gov.pk, along with all supporting documentation. Additionally, three (3) physical copies of the identical online application along with all supporting documentation must be submitted to STZA within five (5) days of submission of the online application; failure to submit physical copies of the application may result in the application being discarded or put on hold, at the discretion of STZA.

For Islamabad and all Provinces of Pakistan, Applications in physical form should be sent to the following address, unless otherwise specified on STZA’s website:

One Window Department
Special Technology Zones Authority
16th Floor, New State Life Tower
Blue Area, Islamabad

Can I withdraw my Application?

If an applicant is desirous of withdrawing an application, the applicant shall inform STZA in writing with reasons for such withdrawal in writing as per the prescribed methodology under applicable Regulations. It shall be noted that the application fee submitted shall not be refunded to the applicants in such a case. 

What is the procedure for processing of Applications?
All applications filed to STZA go through an initial screening process at the One Window Department. Subject to completion of checklist documents, the applications are evaluated by evaluation committees.

Guidelines for Zone Enterprise Applications

Registered as a legal entity in Pakistan (association of persons, consortium, a body corporate formed or incorporated by or under any law in force, company, corporation, society, modaraba, Real Estate Investment Trust (REIT), Government, trust, partnership, or any juridical personality)

  • Office space in a notified Special Technology Zone (STZ)
  • Purpose-built facility in a notified STZ
  • Application Cover Letter
  • Application Checklist
  • Financial Proposal
  • Technical Proposal
  • Business plan
  • Strategic Objectives commitments
  • Legal documentation (incorporation documents, NTN Certificate, authority letter, board resolution, Undertaking on stamp paper, authorization letter)
  • Start-ups: 20,000
  • SMEs: 200,000
  • Large Enterprises: 500,000
  • Anchor Enterprises: 1,000,000
  • Purpose built facility: 1,000,000

Above mentioned prices are in PKR

  • An applicant needs to submit online application though One Window Portal.
  • An applicant needs to submit physical copies of application to STZA main office

Note: Submission of both online and physical application is necessary for further processing.

  • An applicant can withdraw application after specifying the reason and justification
  • Same Applicant can file after a lapse of six (6) months from the date of confirmation of withdrawal.

Technologies for Zone Enterprises

Artificial Intelligence

Machine Learning

Big Data Analytics

Quantum Computing

Cloud Computing

Internet of Things (IoT)

Robo Advisory

Distributed Ledger Technology (DLT)

Natural Language Processing (NLP)

Augmented Reality (AR)

Virtual Reality (VR)

Robotics

Wearables

Mobile Payment

Fintech

Block Chain

Biotech

Genomics

Science and Technology Institution

Technology Skill Development Centers

Telemedicine

Biomedical Technology

3D-Printing

Electric Vehicles

Automobiles

Sustainable and Renewable Energy

Green Energy

Agri-Tech

Converging Technologies

ICTS

IT and ITeS

Nanotech

Medical Devices

Pharmaceutical

Creative Industries

Ed-Tech

Semiconductors

E-commerce

Satellites

Electronics

Smart Phones

Laptops

Fine Chemicals

New Materials

Precise Instruments

Environmental
Technologies

Tertiary Industries

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

One-Stop Shop for Investors

To provide a One-Window Facility to ease regulatory compliance for all potential investors.

APPLY NOW

Get your license today to contribute towards the technological growth of Pakistan.