Can I start a prop firm in Pakistan?
Quick answer
A Pakistan-based founder can run a technology business serving international customers, but the regulatory picture is strict: the State Bank of Pakistan has prohibited residents from buying products of offshore forex trading platforms, and the SECP has warned about illegal trading platforms. Structure and customer choices need Pakistani legal advice.
Detailed answer
General information, not legal, tax or regulatory advice. Rules differ by country and change over time; confirm your position with a qualified professional before acting on it.
Points to consider:
- Customers in Pakistan: the SBP's prohibition on residents buying offshore forex trading products and remitting funds to them makes serving local traders legally risky.
- International customers: an exporting technology or services business is a different situation, with its own rules on foreign receipts.
- Entity: some founders operate an overseas company for the evaluation business and a local company for development work.
- Tax and remittances: foreign income and remittance documentation.
This is general information, not legal advice. Pakistani law and SBP circulars should be reviewed with a local lawyer before launch.
Practical considerations
- Decide whether to serve local traders at all, given SBP's position.
- Consider whether the evaluation business should sit in an overseas entity.
- Plan how foreign income will reach Pakistan with proper documentation.
- Keep marketing aimed at Pakistani residents especially careful.
Take written advice from a Pakistani lawyer before launch, and review it when SBP circulars change.
PropExecutor team · Updated
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