SECP registered 316 new firms in July

The Securities and Exchange Commission of Pakistan (SECP) registered 316 new limited liability companies in July, bringing the total corporate portfolio to 62,228 companies. In the corresponding month last year, 315 companies were registered.  In addition, the SECP issued licenses to 3 non-profit associations under Section 42 of the 1984 Companies Ordinance.

Around 89% companies registered as private limited companies, while around 7% companies registered as single member companies. Around 2%, of the companies have been registered as public limited companies, while 1% each as associations under Section 42 of Companies Ordinance and foreign companies, during the month. The trading sector took the lead in new registrations with the incorporation of 50 companies, this month, followed by services with 31, construction with 29, tourism with 28, I.T. with 23, corporate agricultural farming with 17 and food and beverages with 13 companies.

Foreign investment has been witnessed in 14 new companies. These companies have foreign investors from Australia, China, Kuwait, Malaysia, Netherlands, Panama, Papua New Guinea, South Africa, Sudan, Turkey and the UK. These companies are from construction, consultancy services, electrical goods, engineering, food and beverages, I.T. and telecommunications sectors. During the month of July the largest number of companies, i.e. 99, registered at the Company Registration Office (CRO) in Lahore. It is followed by the CROs in Karachi and Islamabad, registering 92 and 63 companies respectively. The Multan and Peshawar CROs registered 24 and 23 companies respectively, while the CROs in Faisalabad, Quetta and Sukkur registered 10, 3 and 2 companies respectively. During the month returns for increase in the authorized capital of 83 companies were accepted, with the total authorized capital increment of Rs19.10 billion. Furthermore, 106 companies filed returns for increase in the paid-up capital with the total enhancement amounting to Rs9.41 billion.

Further, while actively performing the role of facilitator to the corporate sector, the SECP introduced enhanced free information availability of company records to all stakeholders. Enhanced information search facility, available on the SECP website, enables stakeholders to view number of useful information such as, when a certain company has last filed its annual returns and whether or not a company is required to file returns mandatorily through online mode. It is envisaged that this step will help bringing in transparency and dissemination of important corporate information to the stakeholders.