Islamabad, July 21, 2023 – In a positive sign for Pakistan’s economy, the Securities and Exchange Commission of Pakistan (SECP) has announced the registration of 27,746 new companies in the fiscal year 2022-23.
This figure represents an impressive increase of approximately 5 percent compared to the previous fiscal year, bringing the total number of registered companies in the country to 196,805.
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A major driving force behind this surge in new incorporations is the end-to-end digitization of the company incorporation process, spearheaded by the SECP. With this digital transformation, an astounding 99.8 percent of companies were registered online, showcasing the efficiency and accessibility of the streamlined system. Furthermore, the SECP witnessed a notable number of 1,256 foreign users registering companies from overseas, indicating an increased interest in Pakistan’s business landscape among international investors.
The total capitalization, measured by paid-up capital, for the newly incorporated companies during FY 2022-23 amounted to PKR 36.6 billion, signifying a substantial infusion of financial resources into the country’s corporate sector.
Among the various sectors, real estate development and construction took the lead with 4,527 new company registrations, followed closely by information technology with 4,038 new companies and trading with 3,539 new entities. Other prominent sectors included services (2,928), food and beverages (1,106), tourism (1,101), and education (1,048), highlighting the diversification of the business landscape in Pakistan.
SECP’s efforts to digitize and simplify the registration process have been commendable. As part of this modernization drive, the integration of SECP’s e-services with Provincial Revenue Departments has significantly facilitated the registration process with these departments at the time of incorporation.
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Furthermore, the issuance of the company tax number has been made available online, streamlining tax compliance for newly incorporated entities. The integration of SECP with the Federal Board of Revenue (FBR) and various provincial departments has resulted in the registration of 26,125 companies with FBR for the National Tax Number (NTN), 819 companies with the Employees’ Old-Age Benefits Institution (EOBI), 317 companies with the Punjab Employees’ Social Security Institution (PESSI)/Sindh Employees’ Social Security Institution (SESSI), and 569 companies with the excise and taxation department.
Additionally, SECP’s efforts to foster a business-friendly environment have extended to banking services. An online portal has been created to facilitate companies in opening corporate accounts after registration, easing the financial setup process.
SECP’s dedication to customer service is evident through its WhatsApp facility, designed for resolving queries related to name availability and the incorporation process. During FY2023, the SECP responded to approximately 14,973 queries, achieving an impressive 96% satisfaction rate.
The data also reveals an encouraging trend in the types of registered companies, with 58 percent being registered as private limited companies and 39 percent as single-member companies. The remaining 3 percent encompass public unlisted companies, not-for-profit associations, trade organizations, foreign companies, and limited liability partnerships (LLP).
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Foreign investment has played a pivotal role in the growth of Pakistan’s corporate sector, with 841 new companies receiving investment from abroad. China topped the list as the largest contributor, investing in 448 new companies, followed by the US (46), the UK (36), Afghanistan (35), Germany (32), Turkey, and South Korea (16 each), UAE (15), Singapore (11), Nigeria (10), and 176 companies from other countries.
The SECP’s successful efforts in digitization and ease of doing business have contributed significantly to the country’s economic growth and have positioned Pakistan as an attractive destination for both local and international entrepreneurs and investors.
As the SECP continues to innovate and streamline its processes, the future appears promising for Pakistan’s business landscape, fostering economic growth, and prosperity for the nation.
