Tag: SECP

ISLAMABAD: The total number of registered companies with Securities and Exchange Commission of Pakistan (SECP) has reached to 139,620, a press release said on Friday.

Out of the total registered companies, 118,280 companies are active, which accounts for 85 percent of total companies which are filling their annual returns, it added.

The SECP said that the reforms introduced by the commission for ease of doing business and digitalization are resulting in continued growth of entrepreneurship in the country.

In the first three quarters of FY 2020-21, SECP has incorporated 19,251 companies, representing an annual growth of 39 percent, compared to the same period last year. The SECP registered 14,493 companies in FY 2018-2019 and 16,945 companies in FY 2019-2020.

In March 2021, despite the challenges of Covid-19, the SECP has witnessed 72 percent growth in registration of new companies by registering 2,513 new companies, compared to same month last year. This is the highest number of companies ever registered in a single month. Around 99 percent companies were registered online and 25  percent of applicants completed the incorporated process the same day. This month, 260 foreign users were also registered from overseas.

Around 65 percent companies were registered as private limited companies, while around 31  percent were registered as single member companies and the remaining 5 percent were public unlisted companies, not for profit associations, trade organizations, foreign companies and limited liability partnerships. The construction & real estate sector took the lead with the incorporation of 414, trading with 393, IT with 311, services with 247, and food and beverages with 110.

Foreign investment has been reported in 43 new companies. These companies have foreign investors from Afghanistan, Australia, China, Germany, Hungary, Iran, Korea South, Mauritius, Norway, Philippines, South Africa, Spain, Sweden, Thailand, Turkey, the UAE, UK and the US.

The highest numbers of companies, i.e. 850 were registered in Islamabad, followed by 751 and 385 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 176, 170, 104, 43, 22 and 12 companies respectively.

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Wednesday said that private companies especially startups are allowed to offer ownership right to their employees as non-monetary compensation for their intellectual services and promotion of their business.

Employee Stock Option Plan (ESOP) is a popular method of attracting, motivating, and retaining employees. Stock Option Plans permit employees to share in the company’s success without requiring a startup business to spend precious cash, the SECP said.

As a step forward to facilitate corporate sector, the SECP hereby clarifies that private companies especially startups can offer ownership rights to their employees as a non-monetary compensation for their intellectual services and promotion of their business.

A private company may offer shares to its existing shareholders in accordance section 83(1)(a) of the Companies Act, 2017, and if the whole or any part of the shares offered is declined or is not subscribed, such shares can be offered to its employees under pre-determined contractual arrangements.

Option for employees to own a company they work for proves to be a highly motivating factor to increase productivity and efficacy which startups immensely require at their initial stages of business commencement. The trend of offering shares to employees is globally more prevalent in startups who might not be able to afford hefty compensation packages for their employees.

Therefore, in order to accelerate business growth in Pakistan, the SECP encourages private companies and startups to avail the opportunity of offering Stock Option Plan which gives them the flexibility to award stock options to employees to buy stock in the company when they exercise the option.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SEC) on Tuesday advised the general public to verify legitimacy of entities before investing their hard-earned money and savings.

The regulator in a statement said that in order to promote protection of investors and the public interest, it regularly issues warnings and alerts, guiding the general public to refrain from investing in fraudulent investment schemes that promise hefty profits and unrealistic returns.

As clearly covered in Section 84 of the Companies Act, 2017, inviting and accepting deposits from the public is a prohibited activity, and can only be offered by specialized companies duly authorized by the SECP or SBP.

In view of various complaints and queries received by the SECP concerning an entity “All Pakistan Projects”, it has emerged that the entity is offering lucrative investment packages through its website (https://allpakistanprojects.com/).

The general public is being informed that “All Pakistan Projects” is not registered with the SECP. However, it has been noted that few individuals, whose names are appearing on the website of the entity, are directors/members in the following registered companies.

APP Projects and Real Estate (Private) Limited,

AITS Traders (SMC-Private) Limited,

APP Restaurants & Cafe (Private) Limited,

APP Riders (Private) Limited;

APP Shopping Mall (Private) Limited.

As previously clarified, mere registration of a company with the SECP does not necessary mean that these companies can invite or accept deposits from the public.

In view of above, the general public is advised in their own interest, to refrain from investing their hard-earned savings in unauthorized schemes and verify the legitimacy of any investment scheme before investing. List of other entities/companies involved in similar unauthorized schemes is available on SECP’s website at the following link: https://www.secp.gov.pk/document/list-of-companies-indulged-in-unauthorized-activities/?wpdmdl=41058&refresh=5ff2b4f5a82801609741557

Complaints or evidences against companies involved in unauthorized activities and illegal deposit taking can be sent at email ID [email protected]

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has reported a significant increase in company registrations, bringing the total to 137,054 by the end of February 2021, according to a recent statement.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday proposed to reduce time limit to three days for making payment of cash dividends.

The SECP issued SRO 229(I)/2021 dated February 18, 2021 to introduce draft amendment in the Companies (Distribution of Dividends) Regulations, 2017.

According to the draft an amendment has been proposed to Regulation 3 of the Companies (Distribution of Dividends) Regulations, 2017. Following amendment has been proposed as:

“Period for making payment of dividends: Subjection to Section 243 of the Act, the chief executive officer of every company is responsible to make the payment of cash dividend, within a period of three working days from the date of its approval by the:

(i) shareholders in general meeting, in case of final dividend; and

(ii) board, in case of interim dividend.”

At present the chief executive officer of every company is responsible to make the payment of cash dividend within a period of fifteen working days from the date of its declaration.

The SECP invited comments from stakeholders on the draft amendment to be submitted within 14 days of the date of the SRO.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has launched a portal for expeditious bank account opening for newly registered companies, a statement said on Wednesday.

The online portal provides banks real time access to statutory records of companies, thus enabling them to open corporate accounts without seeking physically certified copies of statutory documents, it added.

Through this portal, the banks can access and verify company information directly from SECP’s records. The online availability of statutory records will reduce the turn-around-time for opening of corporate bank account or for availing other banking services. On the other hand, it will facilitate banks in carrying out due diligence of their corporate customers, for account opening and other services.

Any bank can access the portal by applying to the SECP for creating their user accounts. Initially, this facility is being launched for private limited, public limited and companies formed for not-for-profit objects. In due course, data of foreign companies and limited liability partnerships will also be linked and made available.

The SECP is planning to discontinue issuance of certified true copies in physical form and consequently, banks will only be able to access SECP’s records through this portal.