How to register company is the first query which comes to mind when starting a new business. However, registering a business in Pakistan or in any other country is a legal process. Securities and Exchange Commission of Pakistan (SECP) is responsible for registration of all new businesses.
SECP registration is crucial for business in Pakistan for several reasons. it provides legal recognition and protection to your business. SECP registrations helps you run your business with ease as it simplifies many process such as opening bank accounts , obtaining licenses and entering contracts.
SECP registration involves choosing a business name, providing required documents, submitting application, paying fees and receiving the certificate of incorporation. SECP application process may vary according to the requirements of your company. we advice you to consult with legal professionals for SECP registration. Contact us today at 051 88 99222 for personalized assistance with your SECP registration.
Benefits of SECP Registration
SECP verification is beneficial in a number of ways such as
- Legal Recognition: SECP company registration provides your company with legal protection of your assets as well as ease in transfer of funds. Also it provides a legal recognition to your company that you are a authentic and trusted service provider.
- Access to Financing: Registered companies have more access to loans , investments and other resources from banks. they also are eligible for government grant and tax subsidies.
- Brand Identity: SECP registration strengthen your brand identity as your intellectual property is now protected. SECP provides you a platform to trademark and register your intellectual property.
- Ease of Doing Business: SECP registration instates trust in your customers, suppliers and partners. SECP license facilitates entering into contracts and agreements with government departments and agencies.
SECP Companies Act 2017
SECP Companies Act 2017 is a comprehensive piece of legislation in Pakistan that governs the formation, operation, and regulation of companies. This acts provides a legal framework for company laws and regulations incorporating practices aligning with international standards. This act introduces measures for protection of investors rights and remedies for discontented shareholders, a long standing issue.
This Act enforces companies to comply with legal regulations setting requirements for financial reporting and disclosure. Companies act 2017 has a massive impact on corporate landscape in Pakistan, it provides way for ethical and smooth working of businesses. Amendments are made from time to time to keep with changing trends in the corporate, most latest revision in Companies ACT 2017 was done on 18 august 2022.
Types of SECP Company Registrations
SECP Registration for Sole Proprietorship
A sole proprietorship is a business owned and operated by a single individual. It is mostly preferred by companies or individuals starting their own businesses.
Characteristic
- There is only one owner making decisions for all aspects of the business.
- Only the owner is liable for business debts and obligations.
- The Business and owner are considered as a single identity.
- Profits and loss are reported on the personal income tax return of the owner
Benefits
- The legal requirements are minimal and license costs are also minimal.
- The owner is entitled to all the profits and credits as well as a complete authority in making decisions for the company.
- The legal paperwork and requirements are also minimal making it easy to focus on growth.
- Sole Proprietorship are eligible to certain tax deductions and exemptions
SECP Registration for Partnership
A partnership is a business formed by collaboration of two or more individuals. there are two types of partnership general partnership and limited partnership.
General Partnership
In general partnership the partners have a shared liability for all assets and obligations. All the share holders have a say in decision making and management. Profits and losses are shared according to the established agreement.
Limited Partnership
limited partnerships is further divided into general and limited partners. Limited partners have limited liability as the partners are only liable to their initial investments. However general partners have unlimited liability and are also responsible for managing the business. Profits are shared on terms of initial investment however limited partners often receive a fixed return on their investment.
SECP Registration for Private Limited Company
A private limited company is a company that offers limited liability to its partners. It is a popular choice for businesses who want to separate their assets from liabilities. The company is owned by shareholders. Shareholders collectively elects a board of directors. the company board of directors is responsible for managing the company.
The shareholders are only liable for the investment they have made also the company has a separate identity from its shareholders. In addition to the shareholders are protected from the company debts and obligations. ownership of shares is also transferable.
On the contrary pvt are have more limitations and restrictions then sole proprietorship. The initial setup and management costs are much higher as compared to other types. so if you are thinking of setting up a company with multiple partners and limited liability pvt might be a good fit for you.
SECP Registration for Public Limited Company
A public limited company is a company that allows the public to buy and sell its shares. It is a suitable choice for business that require large capital investments. Their shares are publicly listed on stock market also they are under strict closure requirements including financial and annual reports etc. They must follow strict corporate governance standards, including having independent directors and conducting regular audits.
Public limited companies have a lot of advantages such as they have access to large amount of capital, shares liquidity and succession planning as ownership can easily be transferred through sales of shares. However there are downsides to it such as operating is more expensive due to increased administrative and compliance costs. Also the public shareholders can influence the decision making.
SECP Registration Process
Securities and exchange commission Pakistan is responsible for registering new businesses and keeping a check on old ones. the process involves several steps such as gathering the necessary documents, submitting the application, and paying the required fees.
Before we get into details of SECP registration process there are a few things you need to consider. first ensure that you have all the necessary documents such as such as identity proof, proof of address, and the Memorandum of Association (MOA) and Articles of Association (AOA). Then make sure you have the funds required to start the process and the most important is timelines, make sure you know about estimated processing time for your application and be prepared to address any potential delays.
Navigating SECP registration can be complex. Let our team at tenco consulting handle the paperwork and processes for you. Contact us today for a free consultation.
Steps in SECP Company Registration Process
- Create an online account with SECP
- Company Name reservation
- Define company shares capital & directors
- Preparation of Incorporation documents
- Digital signatures
- Pay incorporation / Filing Fee
- Collect incorporation certificate
Step 1: Creating an e-Services Account with SECP
SECP company registration is an online process. Now a user, either local or foreign, can get registration with SECP online portal. Thus, e-services is an online portal that helps with registration and after-registration activities. Pakistani nationals can create usernames and passwords online by visiting the SECP website or by clicking Here. Furthermore, SECP company registration requires cell number (sim on user name), email id & CNIC number. However, for foreign registration, valid passport, photograph, cell number and email will be required
Step # 1:
- Visit SECP website or visit here for SECP company registration. There are 2 options for creating new account.
- Sign Up for national
- Signup for foreign / POC holder
If your company is already registered with SECP then you just need to login at eZfile portal account. However, if you are a new user then just create a simple account by signing up.
Step # 2:
Fill the registration form very carefully. Enter correct all the particulars according to NADRA records. Enter CNIC number without dashes and create a password. However, the password must have 8 or more characters including minimum 1 number, 1 special character, 1 lower and 1 uppercase.
For instance, SECP e-Services registration form is shown above for e-Services SECP registration information. All the particulars will be verified from NADRA. Likewise, cell number and email id will be verified by sending separate codes on the given mobile number and email id. Certainly, a foreign or national user will not be able to create an account without providing correct codes received on cell number and email id.
After completing account creation, login to your SECP portal by entering username and password for SECP company registration. Username is your CNIC or Passport number (without dashes) and password is same entered while registering. After signing in, start company registration/return submission and enter & apply user pin. After creating PIN, your account creation is completed. Now user can register a company, add directors or even can submit the return
Step 2: SECP Company Name Reservation
How to Choose a Business Company name?
After creating account with SECP online portal, you need to reserve company name. The name you suggest should not be registered with some business before, in case it happens you must provide proof of your link or connection to the proposed name. SECP requirement is that you must propose 3 names and enlist them according to your priority.
SECP will check the availability of that name by itself. Your motive behind choosing that specific name must be clear because you have to give justification for your proposed name. To know more about the whole process visit A step by step guide on SECP name reservation.
Ensure your name does not contain foul words or words that are prohibited . Also choose a name that aligns with your company role and identity. Company name could be generic or specific, depending upon your main principal line of business.
SECP Company Name Availability Check
In order to avoid any hustle and ambiguity, you can make use of SECP services. SECP has created a page for name availability. You can check your desired name there which you are going to propose for your business. Before applying for company incorporation, please visit SECP name availability site for name availability
Step 3: Gather Required Documents for SECP Registration
Documentation is a crucial step for registration make sure all your documents are complete with no errors. For your ease we have devised a list of the necessary documents required for SECP registration 2024.
SECP Required Documents All Business Types:
- CNIC or Passport Copies: you need CNIC copies and passports of all directors and shareholders
- Proof of Address: you need to show evidence of company registered office for that you need utility bills, rental agreements or property tax receipts
- Memorandum of Association (MOA): MOA is the legal document that gives an insight into the principal, structure and key objectives of the company. It also acts as a declarant of company names and services
- Articles of Association (AOA): AOA should clearly state the internal rules and regulations of your company
Additional SECP Documents for Specific Business Structures:
Sole Proprietorship: No additional documents are required.
Partnership: Partnership deed or agreement detailing the partners’ contributions, profit-sharing, and responsibilities.
Private Limited Company:
- Consent letters from directors and shareholders
- Declaration of solvency (if applicable)
Public Limited Company:
- Minimum subscription requirements
- Prospectus or offer document
- Underwriting agreement
Step 4: Submit Your SECP Application
SECP application form can be filled through SECP portal online or you can opt for a manual registration. However SECP has made online registrations mandatory for all businesses but if in person registrations are allowed for certain circumstances.
SECP Application Online
Here are the steps listed for online application
- Go to SECP Portal
- Create your account
- Navigate the company registration section and click on the SECP application for your desired company
- Fill the form accurately providing all necessary details
- attach the required documents such as AOA, MOA etc
- Submit the required registration fee using the available payment options
- Click submit SECP application to finalize your process
SECP Application In-Persson
- Gather all your necessary documents
- Visit your nearest SECP office during operating hours (9am to 5pm monday to friday)
- Fill out the SECP application form and attach your documents
- Pay your SECP fee challan and submit its copy
To make sure your SECP application is successfully submitted keep in mind a few things such as ensure that you have submitted your application fee within time frame. Also before submitting your documents double check all details to make sure there are no errors. Have questions about SECP registration? Contact us at 051 88 99 222 for a free consultation and expert advice.
Step 04: SECP Registration Fees
SECP Registration fee can be submitted online or in person. The fees are different depending on the type of licenses and taxes.
You can calculate your company incorporation fee using SECP company incorporation fee calculator .
Company Incorporation Fee Calculator
How to Deposit Company Incorporation Fee?
In Pakistan, the fee for incorporating a company with the Securities and Exchange Commission of Pakistan (SECP) can be deposited through several methods:
- Online: The SECP has an online portal, e-Services, where you can pay the fee using a credit/debit card or internet banking.
- Bank Deposit: You can deposit the fee in any branch of the National Bank of Pakistan (NBP) or Habib Bank Limited (HBL) using the deposit slip available on the SECP website.
- Postal Order: You can also pay the fee via Postal Order and send it to the SECP’s office in Lahore, Karachi, or Islamabad.
- Cheque: You can also pay the fee via cheque, in favor of the Securities and Exchange Commission of Pakistan, and send it to the SECP’s office in Lahore, Karachi, or Islamabad.
The max money a business can raise by issuing shares to its shareholders is known as Authorized Share Capital. it is the maximum amount of money a business can raise from its investors. SECP charges companies based on the authorized share capital, the higher the authorized share capital the higher the fee.
You can calculate authorized share fee for your company using SECP Authorized Share Fee Capital.
Authorized Share Capital Fee Calculator
SECP has introduces both online and manual ways for submitting fee. To now more about online payments visit How do I make a payment for financing statements or certified searches? .
The Online fee submission is done through debit or credit cards and is secured, as soon as you pay fee your application is marked is paid and is submitted for further processing. for more information visit eServices ADC ePayment Guide. Before making any transaction make sure you have read how to guides as well as revised data import manual thoroughly.
You can also fee manually by SECP fee Manual Challan . Do not share your challan information with anyone. Fee submission is an important and critical process any mistake can cause rejection of your application so seek professional help.
Seventh Schedule
The Seventh Schedule of the Companies Act, 2017 outlines the fees that are to be paid for SECP services such as company registration, filing annual returns, and regulatory filings etc. The most recent update was made on 27, may 2023. It is important to be updated on the fees, this will help you estimate anticipated costs as well as save you from being ripped off by fake consultants.
Step 5: SECP Verification and Approval
SECP verification involves a thorough review of your submitted SECP application. the personnel at SECP check the authenticity of your documents and claims. There is no specific timeline for approval however it takes less time for a small business to get validation. SECP may take a few weeks to decide , also make sure to keep in check incase there are any problems.
SECP Verification Process: What to Expect
During the SECP verification process the SECP officials will thoroughly examine your documents to make sure they are all complete and accurate. They will check if your application is in compliance with all the laws and regulations. Additionally they may also conduct check-ins with designated authorities or contact you for further information if necessary.
SECP Approval or Rejection: Possible Outcomes
Once the SECP application process is complete SECP will either approve or reject your application. In most cases applications are approved. If your application is rejected you can try again by removing whatever objections the SECP officials had. For that we suggest you take help of consultants as some rejections may lead your company being blacklisted. so if you are wondering what to do if SECP rejects your application then Contact us now at 051 88 99 222 Tenco consulting will sort it out for you.
Here are a few additional tips for smooth SECP verification process. First and most important double check all the documents before submission, make sure you have all the documents and do a spell check. Next is be patient we know its hard but try, do not contact SECP officials too much. lastly make sure you are active on the contact information you provided in your SECP application, so that you can respond promptly if contacted by SECP office.
SECP Post Incorporation Procedure
Post incorporation procedures are necessary procedures that need to be done after your company is successfully registered with Securities and exchange commission of Pakistan. It consists of filling annual returns on your business, license renewals and adherence to corporate government standards.
Annual Returns
Statutory Returns
Corporate Governance
SECP compliance checklist
Why did you Decide to Start Your own Business?
Starting a business is a brave decision. It leads to new journeys and roads of success and failure too. Your business success rate will depend upon your nerves. How strong your nerves are will determine faith of your business. This makes you your own boss. As a result, this is the reason you chose to follow this difficult journey.
Being an employee and being the boss of employees creates a huge difference in your life. It changes the way you think of your own value in the society. Your business will make you independent and thus will provide an identity to your existence. Right and valuable consultation before starting any business is as important as your finances. TENCO with 10 years of experience in consultancy services will provide you each and every aspect of your business. Before starting any business, feel free to Contact Us for free consultancy services.
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thank you. very well explained.
Dear Miss Sidra Shafiq,
Thank you so much for the appreciation, means alot
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Ayesha (TENCO)