ISLAMABAD (MEDIA REPORT)
The Securities and Exchange Commission of Pakistan (SECP) and Board of Investment worked in close collaboration to introduce reforms to make business incorporation easier in the context of Starting a Business indicator of World Bank Doing Business Report.
Considering the world’s best practices for company registration, the single online procedure has been a sought after reform area. SECP, in this regard has combined procedure for company name reservation and company incorporation on February 06, 2018.
This helps the new start-ups to register companies in a single step through e-Services rendered by SECP. The much needed legal back-up was already in place and now implemented i.e. S.R.O 704 (I)/2017 dated July 26, 2017 which is available at https://www.secp.gov.pk/document/sro-704-i2017-companies-incorporation-regulations-2017/?wpdmdl=28925.
The time to register a company is now four hours in one go where requirements are submission of name availability with three options and incorporation application with model memorandum of association and articles of association. The beginning of the financial year 2018 has brought a fresh air of reforms as SECP has introduced two other reforms regarding ease of Starting a Business.
One the merger of procedure to notify the appointment of CEO with company incorporation procedure, Two, SECP has further reduced fee involved in company registration due to merger of several statutory forms into a single form.
The current name reservation and company registration fee for single member company with a paid up capital up to Rs. 100,000 is Rs.1, 550 under online mode and Rs. 3,000 under offline mode. Previously it was Rs.2, 300 under online mode and Rs.4,500 under offline mode.
Both reforms have their legal back up to insure the protection that an incumbent business requires. The end result is less procedures, lesser time in company registration and reduction in cost of starting a business. SECP has taken up a huge challenge to implement the reforms on creating an enabling business environment at federal level. Board of Investment and SECP are committed to implement reforms for a well-documented economy and a formal growing business sector.