SECP Reports Significant Surge in Registered Companies to 197,828 by July 2023

SECP Reports Significant Surge in Registered Companies to 197,828 by July 2023

Islamabad, August 11, 2023 – The Securities and Exchange Commission of Pakistan (SECP) has announced a notable upswing in the number of registered companies in the country, reaching a total of 197,828, according to a recent press release.

In the month of July 2023 alone, SECP facilitated the registration of 2,220 new companies, marking a remarkable 25 percent increase compared to the previous year. These newly registered companies amassed a total capitalization of Rs. 3.3 billion.

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An analysis of the composition of registered entities reveals that 57 percent of Pakistan’s companies operate as private limited companies, while 41 percent are single-member companies. Additionally, 2 percent of registered entities fall under the categories of not-for-profit associations, trade organizations, and limited liability partnerships (LLPs). Impressively, 99.7 percent of these entities completed their registration process online.

SECP’s report also highlighted the growing interest from foreign companies in the Pakistani market. Currently, three foreign companies have established their presence in Pakistan, and a total of 86 foreign applicants have registered from overseas.

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Among the diverse sectors contributing to this surge in company registration, the information technology sector takes the lead with the incorporation of 316 companies. Other prominent sectors include trading (309), services (260), real estate development & construction (252), food & beverages (96), and tourism (91), to name a few. Overall, 168 companies were registered in various other sectors.

SECP’s integration efforts with the Federal Board of Revenue (FBR) and provincial departments have yielded significant results, leading to the registration of 2123 companies across various government departments.

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Furthermore, foreign investment has played a pivotal role in this expansion, with 42 new companies attracting foreign investors from countries such as Afghanistan, Canada, China, Djibouti, Germany, Hong Kong, Iran, Italy, Kuwait, Norway, Saudi Arabia, Singapore, Spain, Sweden, Turkey, UAE, UK, US, and Vietnam. China stands out as a major contributor, with 16 companies receiving investments, and notable contributions from Singapore, UAE, Afghanistan, Iran, the US, Vietnam, and several other countries.

SECP’s customer service initiatives, such as the WhatsApp facility, have also contributed to this positive trend. The platform has handled numerous inquiries related to name availability and incorporation, recording an impressive 96 percent satisfaction rate for the month, with a total of 1,305 responses.

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As Pakistan’s business landscape continues to evolve and attract both local and foreign investors, SECP’s efforts in streamlining the registration process and fostering a business-friendly environment appear to be yielding encouraging results, promoting economic growth and entrepreneurship in the country.