How to Choose a Software Development Company in Pakistan: The Due Diligence Checklist

How to Choose a Software Development Company in Pakistan: The Due Diligence Checklist

Pakistan has excellent software development companies. It also has a significant number of operators who overstate their capabilities, misrepresent their team size, and present AI-generated portfolios. The international market cannot easily distinguish between the two from a distance.

This checklist tells you how to tell the difference before you sign anything.

Step 1: Verify Legal Registration

Every legitimate Pakistani software company is registered with the Securities and Exchange Commission of Pakistan (SECP). Company registration is publicly searchable at the SECP's company search portal.

Ask for the company's SECP company registration number. Cross-reference it against the public search database. Confirm that the company name, registration date, and registered address match what the company presents on its website.

Companies that cannot provide a registration number or provide one that does not match any record are not registered companies. Operating as an unregistered entity in Pakistan is possible but limits the legal accountability structure significantly. Do not engage without verified registration.

Step 2: Verify Web Presence Longevity

Legitimate businesses maintain a web presence over time. Use a domain history tool (whois.domaintools.com or web.archive.org) to check:

• When was the domain registered?
• Is there archive evidence of the website at least 12 months ago?
• Does the content of older archives match the company's claimed history and team size?

Fraudulent operators and newly established shops cannot fake a multi-year web presence. A company claiming 8 years of experience with a domain registered 14 months ago is misrepresenting its history.

Step 3: Verify LinkedIn Staff

Search LinkedIn for people who list the company as their current employer. Cross-reference the number and seniority of staff on LinkedIn against the company's claimed team size.

A company claiming a 50-person development team should have a significant number of LinkedIn profiles showing current employment at the company. A company with 2 LinkedIn profiles claiming a 50-person team is misrepresenting its size.

Look at individual profiles. Do they show a progression of experience consistent with claimed seniority? Are they real people with photos, connection networks, and work history that goes beyond this company?

This check is not foolproof (LinkedIn profiles can be fabricated) but is a quick filter that eliminates many misrepresentations.

Step 4: Request Working Portfolio Links

Ask for direct links to working software the company has built, not case study pages with screenshots, logos, and testimonials.

Try to actually use the software:

• Does it load?
• Does the core feature work?
• Is the interface polished?
• Does it handle errors gracefully?

If the company cannot provide links to working products, ask why. "The client did not allow us to use it in our portfolio" is a legitimate response for some clients. Two or three consecutive uses of this explanation is a pattern.

Step 5: Get Direct Client References

Ask for two or three client references and contact them independently. Not through a referral link or introduction provided by the company. Find the client's company independently (via LinkedIn, the web, their contact page) and reach out yourself.

Questions to ask references:

• How long was the engagement?
• Did the company meet its delivery timelines?
• How did they communicate, and was it sufficient?
• Were there any quality issues, and how were they handled?
• Would you use them again?

The difference between a reference provided by the company and one you find independently is significant. Companies curate positive references. Independent verification tells you what the relationship was actually like.

Step 6: Evaluate the Contract

Before signing, have someone review the contract for these specific provisions:

IP assignment. All code, designs, and deliverables created during the engagement must transfer to you on payment. This should be explicit, not assumed.

NDA. The company agrees to keep your business information, technical systems, and client data confidential.

Scope definition and change order process. A written scope is attached to the contract. Changes to scope go through a written change request process with a revised estimate and client approval before additional work begins.

Milestone payment schedule. Payment is tied to deliverable milestones, not calendar dates. "First milestone payment on contract signing plus 30 days" tells you nothing about delivery. "First milestone payment on completion and client acceptance of authentication and core user flow" is tied to what you actually receive.

Bug warranty period. A defined period (typically 30 to 60 days) after delivery during which the company fixes bugs at no additional charge.

Termination clause. The conditions under which either party can end the engagement, the notice period required, and the payment obligations at termination.

Contracts that are one-page summaries without these provisions are not suitable for a software development engagement. Any company worth engaging uses a full-length service agreement.

Step 7: Meet the Technical Team Before Signing

Ask to have a technical call with the developers who will actually work on your project, before you sign the contract.

A sales representative explaining the team's capabilities is not the same as speaking directly with a developer who demonstrates those capabilities. Use the technical call to:

• Ask the lead developer to walk you through a project they have built
• Ask how they would approach a specific challenge in your project
• Assess whether their communication is clear enough for your working style
• Ask what their code review process looks like

If the company cannot introduce you to the specific technical team members before contract signing, you are buying an abstract capacity promise, not a specific team.

Red Flags Summary

Walk away without further process if:

• No SECP registration number provided or number does not verify
• Portfolio contains only case studies with no working product links
• Claims a team size significantly larger than what LinkedIn evidence supports
• Cannot provide client references for independent contact
• Rates significantly below market (under $1,500 per month for claimed senior development)
• Contracts without IP assignment or NDA
• Cannot introduce you to the technical team before signing

The due diligence process described here takes 3 to 5 business days. That investment protects a relationship and investment that may run for months or years.

For a direct demonstration of how Codalyst Tech answers these checks, contact us. We provide SECP registration details, working portfolio links, direct client references, and named developers for every engagement before the contract is signed.