AOP stands for Association of Persons. It is a business structure in Pakistan where two or more people, such as professional partners, come together to run a business and share profits, without forming a separate company.
An Association of Persons (AOP) or Partnership Firm is a business structure where two or more individuals come together to carry on business with the intention of making a profit. AOP registration in Pakistan is governed by the Income Tax Ordinance and the Partnership Act, 1932.
What is an AOP Firm?
An Association of Persons refers to a group of people who combine their resources and expertise to run a business. Common examples include law firms, accounting firms, medical partnerships, and consulting groups. Unlike a company, an AOP does not have a separate legal entity from its members.
Who Can Form an AOP?
- Professional practitioners (lawyers, doctors, accountants)
- Business partners
- Joint venture participants
- Investment groups
- Trading partnerships
Requirements for AOP Registration
- Written partnership deed
- NTN of all partners
- CNIC copies of all members
- Bank account in the AOP’s name
- Registered office address
- Partnership registration certificate
- Tax registration for the AOP
Steps for AOP Registration
- Prepare the partnership agreement/deed
- Obtain NTN for each partner
- Register the partnership with the relevant authority
- Open a business bank account
- Register for sales tax and income tax
- Obtain required licenses and permits
Benefits of AOP Registration
- Simple formation process
- Shared resources and expertise
- Joint liability and responsibility
- Tax benefits under income tax laws
- Professional credibility
- Easy dissolution and modifications
- Lower registration costs compared to companies
At IMAAR Associates, we provide complete AOP registration services including deed preparation, registration formalities, tax compliance, and ongoing advisory support for partnerships in Lahore and across Pakistan.