SECP introduces amendment to simplify registration

Move comes as Pakistan looks to improve ease of doing business ranking

APP February 07, 2018
Move comes as Pakistan looks to improve ease of doing business ranking PHOTO: SECP

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), in continuation of its reforms to increase ease of doing business, has combined the procedures of reserving the name of proposed company and applying for its incorporation, a press release said on Tuesday.

The ‘major amendment’ in the procedure will enable speedy company registration within “four working hours” through eServices, the release added, further stating that SECP has already issued the SRO to amend the incorporation procedures.

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These measures are in line with ease of starting a business indicators mentioned by the World Bank’s Doing Business Report. The promoters of a company would only be required to submit a combined application that contains three options of name for proposed company and incorporation application with model memorandum of association and articles of association.

Earlier in the current fiscal year, the SECP had already merged the procedure to notify the appointment of CEO in company incorporation. In addition, the fee for incorporation of a company has already been reduced significantly due to merger of several statutory forms into a single form.

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The current name reservation and company registration fee for single member companies with a paid up capital of up to Rs100,000 is Rs1,550 under online mode and Rs3, 000 under offline mode. Previously it was Rs2, 300 under online mode and Rs4, 500 under offline mode.

These reforms have led to further reduction in the number of procedures, time required to start a company and cost of starting a business, the release said.

“The SECP, being a lead agency for business registration, is cognisant of the importance of “Ease of Doing Business” and will continue the reform measures, which will lead to further robust corporate growth in the country and formalisation of the business sector and documentation of economy,” the release added.

Published in The Express Tribune, February 7th, 2018.

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