SECP takes drastic measures to ease corporate sector

ISLAMABAD: The Securities & Exchange Commission of Pakistan (SECP), in order to facilitate registration of companies, has been introducing various facilitative measures from time to time.

SECP has made drastic reductions in registration fee for small companies and filing fee of companies with small capital base. It provides complimentary certified true copy of company formation documents and other statutory returns to the companies upon its registration. The time of incorporation has been reduced from minimum 4hrs to 2hrs under Fast Track Registration System.

SECP, expanded its outreach through establishing Company Registration Office in Gilgit and Facilitation Counters in Sialkot, Abbottabad and Gwadar. Online payment of fee through online funds transfer and credit cards, and obtaining of Digital Signatures from NIFT online was provided to facilitate foreigners. 

The commission, also enabled same day online incorporation without charging any additional fee subject to adoption of short memorandum of association.

Among other things short memorandum of association of 68 sectors are available on the website which made it easier for the promoters to incorporate the company by adopting the same.

Despite the introduction of all the aforesaid facilitative measures, it has been observed that promoters don’t directly apply to the commission for the incorporation of the companies, as a result of which time and cost of doing business increases in Pakistan.

Further it is also apprehended that free of cost certified copies provided by the SECP are misused, which are ultimately charged to the companies by the third parties.  Objective of introduction of the substantial facilitative measures by the commission is to ease the process of incorporation, and especially promote direct interaction of the companies with the SECP. 

The general public is therefore advised to directly interact with the SECP for the incorporation of the companies and other matters through eServices as well as for submission of documents in physical form. The eServices form an end-to-end online system which is available 24/7.

Further it is advised that not to make any payment to anyone against the complimentary certified copies issued by SECP.