Everything you need to know about social commerce on WhatsApp in Pakistan: legality, registration, taxes, sector licenses, WhatsApp Business rules, payments, COD, consumer protection, and a practical compliance checklist.
Short Answer
Yes, you can legally sell via WhatsApp in Pakistan. WhatsApp is just a sales channel. To be compliant, treat it like any other e‑commerce or retail operation: register for tax where required, issue invoices/receipts, follow consumer protection rules, respect WhatsApp’s Commerce Policy, and obtain any sector‑specific licenses (for example, food, cosmetics, or medicines).
What “Selling on WhatsApp” Really Means
WhatsApp selling (also called social commerce) uses chat to market, take orders, send invoices, and provide after‑sales support. You can use the WhatsApp Business App to create a catalog, label chats, set quick replies, and show your business profile with address, email, and website. Larger sellers may use the WhatsApp Business Platform (API) for automated notifications and integrations with CRMs or order systems.
Since orders and payments are agreed electronically, Pakistani e‑commerce and consumer protection rules still apply—even if you don’t have a website.
Legal Foundations That Make WhatsApp Selling Valid
- Electronic Transactions Ordinance, 2002 (ETO): Recognizes electronic communications and records. A contract formed over chat is generally valid if basic contract principles are met (offer, acceptance, consideration, free consent).
- National E‑Commerce Policy (2019): Encourages digital commerce, including social commerce.
- Consumer Protection Laws: Provincial consumer laws require fair trade practices and allow consumers to file complaints for defective goods, non‑delivery, or misleading claims.
- Competition Act, 2010: Prohibits deceptive marketing and false advertising.
- PECA, 2016: Addresses unauthorized access, data theft, and certain cyber offenses; keep customer data secure and avoid spam or harassment.
Business Setup Options for WhatsApp Sellers
1) Sole Proprietorship (Most common for home businesses)
- Register for NTN (tax number) with the Federal Board of Revenue (FBR) via the IRIS portal to file income tax returns.
- Open a business bank account in your trade name for clean bookkeeping and smoother tax compliance.
- You do not register with SECP as a sole proprietor; SECP registration is for companies and LLPs.
2) Company (Private Limited) or LLP (via SECP)
- Formally incorporate with the Securities and Exchange Commission of Pakistan (SECP).
- Get corporate NTN from FBR and maintain statutory records and annual filings.
- Recommended if you want limited liability, to raise capital, or work with large brands.
Tax Compliance: Income Tax and Sales Tax
Income Tax (FBR)
- NTN is required to file your annual income tax return.
- Declare your business revenue and expenses; keep bank statements, invoices, and order records from WhatsApp as evidence.
- If you use marketplaces or aggregators, understand applicable withholding taxes and maintain certificates where applicable.
Sales Tax on Goods (FBR) and Services (Provinces)
- Goods: If you supply taxable goods and meet FBR’s registration criteria, you may need a Sales Tax Registration Number (STRN) and to charge sales tax (standard rate commonly 18% unless exempt or zero‑rated). Criteria and thresholds can change; verify on the FBR website or with a tax advisor.
- Services: If you supply services (e.g., delivery as a service, digital services), register with your provincial revenue authority: SRB (Sindh), PRA (Punjab), KPRA (Khyber Pakhtunkhwa), or BRA (Balochistan), depending on where the service is provided.
- Issue proper tax invoices showing your legal name, address, NTN/STRN (if registered), invoice number/date, description, quantity, price, tax amount (if any), and payment terms.
- File periodic returns and pay collected tax on time to avoid penalties.
Sector‑Specific Licenses and Restricted Goods
Some categories require special licenses or are outright prohibited—WhatsApp is not an exception.
Common categories
- Food & Beverages: Home bakers and food sellers may need a Food Business Operator (FBO) license or registration from the relevant Provincial Food Authority (e.g., Punjab Food Authority, Sindh Food Authority). Comply with hygiene, labeling, and expiry rules.
- Drugs, Medical Devices, Supplements: Regulated by DRAP (Drug Regulatory Authority of Pakistan). Selling prescription medicines, certain OTC drugs, or medical devices requires licensing and product registration. Avoid selling medicines without authorization.
- Cosmetics & Personal Care: Increasingly regulated; labeling standards apply. If products make therapeutic claims, they may fall under DRAP.
- Electronics & Mobile Phones: Imported devices must be compliant with customs and the PTA DIRBS registration for mobile IMEIs.
- Clothing, Accessories, Handicrafts: Generally no special license, but respect consumer and IP laws.
Prohibited/restricted items to avoid
- Weapons, ammunition, explosives
- Narcotics, controlled substances
- Alcohol (restricted under Pakistani law; sale requires specific licensing and is not permitted generally)
- Counterfeit/branded fakes, pirated content
- Prescription medicines without DRAP authorization
- Adult content, gambling/lottery tickets
WhatsApp Business Rules You Must Follow
- Use the Business App or API: Set up a professional profile with business name, address, email, hours, and catalog.
- Obtain clear opt‑in: Customers should consent to receive promotional messages. Avoid adding numbers without consent.
- Respect messaging windows: If using the WhatsApp Business Platform, template messages are required for proactive outreach outside the customer‑initiated window.
- No spam or harassment: Repeated unsolicited messages can lead to blocks and account restrictions.
- Display policies: Share your price list, shipping charges, estimated delivery time, return/refund policy, and warranty terms in chat or via a link/pdf.
- Privacy and data: Don’t share customer phone numbers or order details without consent. Store chat logs and invoices securely.
Payments, COD, and Refunds
Accepting Payments
- Cash on Delivery (COD): Still the most common in Pakistan. Use reputed couriers (TCS, Leopards, BlueEx, Trax, Rider, etc.) and clarify return-to-origin (RTO) charges.
- Bank Transfer/IBFT: Share your business account details. For transparency, send a payment confirmation and invoice.
- Raast P2M/QR: SBP’s instant payment rails support merchant QR payments via banks and wallets. Prefer business/merchant accounts for audit trails.
- Payment Gateways/Wallets: If you integrate via a website or payment link, ensure the gateway is SBP‑licensed and issue automated receipts.
Refunds and Chargebacks
- Have a clear refund/exchange policy and share it before checkout.
- For COD returns, document product condition with photos and keep courier RTO slips.
- For bank or wallet payments, process refunds back to the original payment method and issue a credit note.
Consumer Protection and Your Responsibilities
Pakistan’s provincial consumer protection laws require fairness and transparency. As a WhatsApp seller, you should:
- Disclose all costs upfront: Product price, delivery charges, taxes, and any additional fees.
- Provide accurate product descriptions: Avoid misleading claims; share real photos and specifications.
- Offer receipts/invoices: Include your identity (business name, NTN/STRN if registered), date, amount, and return terms.
- Honor warranties and returns: Follow your stated policy and applicable law.
- Share a business address and contact: Builds trust and is useful if disputes arise.
Consumers may approach provincial consumer courts for redress in case of fraud, non‑delivery, defective products, or unfair practices.
Privacy and Data Security
Pakistan’s comprehensive personal data protection law is evolving, but you are still expected to secure customer information under general legal principles and PECA. Good practices include:
- Collect only necessary data (name, number, address for delivery).
- Share a short privacy notice in chat: how you use and store data, and how to request deletion.
- Restrict access to customer data within your team; avoid sending lists on unsecured channels.
- Use device locks, backups, and verified business emails for invoices.
Logistics, Packaging, and Record‑Keeping
- Couriers: Compare rates, COD policies, delivery times, and RTO handling. Integrate order sheets to reduce manual errors.
- Packaging: Use tamper‑evident bags or boxes and include a printed invoice and return instruction slip.
- Records: Maintain order logs, chat transcripts, delivery receipts, and return approvals. Under ETO, electronic records have legal validity.
- After‑sales support: Save warranty claims and service logs to show compliance if a dispute is filed.
Cross‑Border Sales via WhatsApp
If you receive international orders on WhatsApp, exports are regulated:
- Register on Pakistan Single Window (PSW) for customs declarations where applicable.
- Talk to your bank about export proceeds and acceptable international payment channels in line with SBP foreign exchange rules.
- Check destination country import restrictions, labeling, and returns logistics before advertising globally.
Intellectual Property and Brand Safety
- Don’t sell counterfeits: It violates the Competition Act and IP laws; your account can be blocked and you may face legal action.
- Use licensed images and content: Respect copyright for product photos and descriptions.
- Register your trademark: Protects your brand name/logo and helps you act against copycats.
Step‑by‑Step WhatsApp Seller Compliance Checklist
- Decide structure: sole proprietor (FBR NTN) or company (SECP + FBR).
- Open a business bank account; enable Raast/QR or payment links if needed.
- Assess your product category: do you need a Food Authority license, DRAP authorization, or any import compliance?
- Check if you must register for sales tax (goods with FBR, services with provincial authority). Obtain STRN if required.
- Set up WhatsApp Business profile: About, address, email, hours, website/Instagram (if any), and a neat catalog with prices.
- Write and share your policies: pricing, delivery, returns/refunds, warranty, privacy. Pin them or save as quick replies.
- Create invoice templates (with your name, NTN/STRN if applicable). Number invoices sequentially.
- Train your team on opt‑ins, respectful messaging, and handling complaints.
- Choose reliable couriers; agree on COD rules and RTO charges. Prepare packaging with invoices inside.
- Keep records: orders, chats, invoices, payment confirmations, returns. File tax returns on time.
Frequently Asked Questions
Is it legal to run a home‑based WhatsApp shop without a physical storefront?
Yes, as long as you comply with applicable tax, licensing, and consumer protection laws. Many micro‑enterprises in Pakistan operate from home using WhatsApp and couriers.
Do I need a website to sell legally?
No. A website is not mandatory. WhatsApp, Facebook, Instagram, and other channels are acceptable sales channels. The legal obligations are about the business and the transaction, not the platform.
Do I have to register for sales tax?
It depends on what you sell, your turnover, and specific criteria defined by FBR (for goods) and provincial authorities (for services). Requirements and thresholds can change—check official guidance or consult a tax professional.
Can I take payments into my personal bank account?
It is common for micro‑sellers, but using a business account is strongly recommended for transparency, reconciliation, and tax compliance—especially as you grow.
Are screenshots of WhatsApp chats valid evidence?
Electronic records are recognized under the Electronic Transactions Ordinance, 2002. Keep proper records and, where possible, follow up with formal invoices and confirmations.
What products are not allowed on WhatsApp?
WhatsApp’s Commerce Policy disallows items like weapons, drugs, adult content, and counterfeit goods. Pakistani law also restricts alcohol sales, prescription drugs without authorization, and other controlled goods.
How do I reduce fraud or bogus COD orders?
Use partial advance payments for high‑value items, confirm addresses by call, enable OTP/order confirmation steps, and block repeat abusers. Keep a blacklist and work with couriers that offer fraud checks.
SEO Tips for WhatsApp Sellers in Pakistan
- Use semantic keywords in your catalog and posts: “WhatsApp shop Pakistan,” “COD Karachi,” “handmade jewelry Lahore,” “home bakery Islamabad.”
- Share Google Business Profile link and collect reviews to build trust and local visibility.
- Post rich product details in captions: sizes, care instructions, materials, warranty, delivery time.
- Cross‑link to your Instagram/Facebook shop and, if available, a simple landing page with your policies.
Conclusion
Selling via WhatsApp is legal in Pakistan and can be a powerful, low‑cost way to start or scale an online business. Treat WhatsApp like any storefront: register appropriately, follow tax and sector rules, respect consumer rights, secure customer data, and align with WhatsApp’s Commerce Policy. With a professional profile, transparent policies, reliable payments and logistics, and good record‑keeping, you’ll be well on your way to running a compliant and trustworthy WhatsApp business.
