Legal and Regularity

Environment project
Muhammad Shahmir Memon (14576)
Sarah Attarwala (13564)
Sa’adat (14643)
Muhammad Saroosh Khan (14629)
 A boutique is a small financial firm that provides
specialized services for a particular segment of the
market.

It is a highly profitable business in Pakistan.

Boutiques The textile industry is the second largest
employment sector in our country

(contributes 57% to the country's exports)

• But as most of these boutiques are small scale and are even
done at home so these are unregulated
Areas to Regulate
• Registration
• Official registration of home businesses under the method used for
proprietorship
• With regards to the home boutiques, the house owner should get
themselves registered with the banks (to open an account) or incase they
don’t require a separate bank account then they must register with the
FBR so they can be issued their NTN and GST so they can efficiently be
tracked by the government. 
•Employment
• Number of workers
• The number of workers in a home-based boutique must be limited to no more than 5, in
order to be paid proper wages.
• Rights of employees
• No discrimination based on race, religion, ethnicity etc.
• Wages must be paid based on skill with at least the minimum wages keeping the economic
atmosphere in mind. 
• For female employees if need be, a paid 3-week maternity leave is a must. 
• Working hours should be rational, limited to 8 hours a day with weekends off. 
• Termination of Employment
• Either the employer or the employee may terminate employment upon serving one month
of notice or (for an employer) granting one month of salary. Hourly paid workers who are
retrenched must be given either two weeks' notice or two weeks' wages as stated in the
labour policies of 2010.
• Quality Control and Taxation
Quality Control
• Should also follow the same quality controls and testing regulations as set for other
textile businesses
• For exports Acceptable Quality Limits (AQLs) should be enforced respective to the
products.
• The recommended control procedures for fabric and garment testing such as tearing,
tensile and appearance after wash tests should be ensured before and after
production.
Taxation
• Home boutiques would be categorized the same way as other textile businesses as Sole
proprietorship, Sole proprietorship, Limited liability company and Corporation
depending on their legal structures. 
• All such businesses would be taxed under the same category as other textile businesses
and would be charged the same rates of taxations unless and otherwise mentioned in
Pakistan Textile Policy, the annual budget or any other legislative document or
presidential ordinance.
• Property, Land or Equipment would be treated according to the regulations as set by
FBR for home-based businesses and not according to ordinary textile businesses since
home run boutiques fall in the latter category for PPE.  
Business Ownership Laws
License
• All the boutique owners must have a license
• Each successful applicant shall, within time prescribed by the Authority and before the issue of the
license, deposit the applicable license fee and make a security deposit, if applicable, as set out in the
Schedule-B.
• All the licensees will be evaluated on following factors:
i) financial strength
ii) owner’s acumen
iii) Personal Profile
iv)Track record and credibility
• The Authority shall, only if it is satisfied that the applicant fulfils the criteria as provided in the act
and has paid the prescribed fee and other charges, if any, grant licence to the applicant.
Competition

• To ensure that fair competition is facilitated, and consumer protection is not

violated, no boutique shall engage in following activities:
i)Cartelization: it should not conspire to discuss prices with its competitors.
ii)Price discrimination: it should not sell the same product at different prices
to different buyers, in order to maximize sales and profits.
iii)Monopolization: it should not preserve a monopolistic position through
the strategic acquisition of competitions or the exclusion of competitors in
the given market.
 The basic reason for regulating a business is for the consumer
protection. Many industries are regularly reviewed and overseen
because if they go away, they can have significantly harmful
effects to human health, financial well-being, or community
structure.

Why It is Secondly Many regulations are in place to protect those who have

important to developed their business correctly; licensing, permits, and

inspections by the government weed out undesirables or criminal
activities that undercut honest industries.
regulate:
To a business owner or manager the multiple levels of
governmental oversight can seem confusing and/or unnecessary.
However, this difference of perspective is frequently balanced in
the form of commissions and boards over a particular industrial
activity, allowing for both regulation and the relatively free flow of
commerce.