The Securities and Exchange Commission of Pakistan (SECP) is the regulatory authority overseeing the incorporation and regulation of companies in Pakistan. If you are an entrepreneur or business owner looking to establish a company in Pakistan, understanding the process of SECP company registration is crucial. This guide provides a detailed, step-by-step overview of the company registration process in Pakistan.

Why Register a Company with SECP?

Registering your company with SECP brings several advantages, including:

• Legal Recognition: Your business gets formal legal recognition, which allows you to enter into contracts, open a corporate bank account, and operate under a recognized structure.
• Limited Liability: By registering as a company, your personal assets are protected from business liabilities. This is particularly beneficial for risk management.
• Taxation Benefits: Registered companies can access tax deductions and benefits available to corporate entities.
• Credibility and Trust: A registered company enhances your business's credibility, making it more attractive to investors, clients, and partners.

Types of Companies That Can Be Registered with SECP

Before you begin the registration process, it is important to know the different types of companies you can register. The SECP allows for the registration of various types of companies, including:

• Private Limited Company (Pvt. Ltd.): The most common type for small to medium-sized businesses.
• Public Limited Company: Ideal for large businesses intending to raise capital through the public by issuing shares.
• Single Member Company: A private limited company with only one shareholder.
• Non-Profit Company: A company established for charitable purposes.
• Foreign Company: If you are a foreign entity looking to operate in Pakistan, you can register a branch or subsidiary of your business.

Step-by-Step Guide to SECP Company Registration

1. Name Reservation

The first step in registering a company with SECP is to choose a unique name for your business. The name must comply with the guidelines set by the SECP. It should not be identical or similar to an existing registered company name.

• How to Reserve the Name:
  Log into SECP’s online system, eServices, and use the “Name Reservation” service to check the availability of your desired company name. You can propose up to two names in order of preference.
• Approval: The SECP typically takes 1-2 days to approve a name reservation. Once approved, the name remains reserved for 60 days, during which time you must complete the registration process.

2. Prepare Documents

You will need to prepare and submit certain documents to SECP during the registration process. Common documents required include:

• Copy of National Identity Card (CNIC) for Pakistani nationals or copyright copy for foreign nationals.
• Form 1: Declaration of compliance with the requirements of the Companies Act.
• Form 21: Consent to act as a director.
• Form 29: Particulars of directors.
• Memorandum and Articles of Association: These documents outline the company's objectives, operational structure, and rules.

3. Fill in the Registration Forms

Once the name reservation is approved, the next step is to fill out the necessary forms for company registration:

• Form 1: This form is a declaration that the company will comply with the requirements of the Companies Act and the SECP regulations.
• Form 21: This is the consent form from the directors agreeing to take responsibility for the company.
• Form 29: This form provides details of the directors, including their full name, address, and occupation.

4. Submit the Application

After filling out the required forms and preparing the necessary documents, you need to submit your application through the SECP’s eServices portal. The online system allows you to submit all forms electronically, making the process convenient and faster.

• Documents Upload: Scan and upload all the required documents, including identification documents, forms, and the company’s Memorandum and Articles of Association.
• Fee Payment: The SECP charges a registration fee based on the type and capital of the company. Payment can be made online via the SECP portal.

5. Verification and Approval

Once you submit your application, the SECP will review the provided information and documents. This review process typically takes 2-3 business days. If everything is in order, SECP will approve the registration and issue a Certificate of Incorporation.

• Certificate of Incorporation: This is the official document that marks the establishment of your company. It contains your company’s registration number, which serves as its unique identifier.

6. Post-Incorporation Compliance

After your company is incorporated, there are a few essential compliance steps to complete:

• Obtain a National Tax Number (NTN): You need to register your company with the Federal Board of Revenue (FBR) to obtain an NTN for tax purposes.
• Open a Corporate Bank Account: Use your Certificate of Incorporation and NTN to open a corporate bank account.
• Register for Sales Tax (if applicable): If your business deals with taxable goods or services, you will need to register for sales tax with the FBR.

7. Maintain Corporate Records

Once registered, your company must maintain certain corporate records and hold regular meetings, such as annual general meetings (AGMs) and board meetings. You will also need to file annual returns with the SECP.

• Annual Return: A summary of the company’s financials, activities, and directors must be submitted to SECP annually.

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SECP Registration Fees

The cost of registering a company with SECP depends on several factors, including the type of company you are registering and the amount of share capital. For a standard private limited company, the registration fee can range from a few thousand rupees to several tens of thousands of rupees. The SECP fee schedule is available on their website and is subject to change.

Conclusion

Registering a company with SECP is a straightforward process that can be completed entirely online, provided you follow the required steps carefully. With your company officially registered, you can enjoy the benefits of limited liability, tax advantages, and the ability to establish your business as a legal entity in Pakistan. Whether you are a local entrepreneur or a foreign investor, SECP company registration is the key to running a legitimate and credible business in Pakistan.