SECP Companies

Company

A company is a natural legal entity formed by the association and group of peoples to work together towards achieving a common objective.

Private Limited / Public Limited Company Formations

Any three or more persons associated for lawful purpose may, by subscribing their names to the memorandum of Association and complying with the requirements of the Companies Act 2017 form a Public Company and any two or more persons so associated my, in like manner, form a Private company.

Single Member Company ( SMC-Private) Limited

If only one member forms a private company, it is called a single member company.
First step towards incorporation of a company is to submit a combined or a separate application for the reservation of Company’s name and incorporation either through e-services or in physical form as per the format provided in the companies (Incorporation) Regulations,2017 (the “Regulations”).

ANALYSIS OF SECP COMPANIES IN A GLANCE

S.No Description Private Limited Public Limited(Un-Listed) Public Limited(Listed)
1 Shared Holders 2-50 3-250 7-Unlimited
2 Minimum Capital 100,000 PKR 100,000 PKR 200 Million PKR
3 Listed in Stock Exchange No No Yes (Shares must be subscribed by at least 500 Applicants)
4 Investments Investment Only raised via Private Connections Investment Only raised via Private Connections Can offer Shares to general Public
5 Compliance Level Medium High High
6 Legal Cost Rs. 1,000 for capital of Rs.100,000 and Rs.500 for every additional 100,000 capital Rs. 1,000 for capital of Rs.100,000 and Rs.500 for every additional 100,000 capital Rs. 1,000 for capital of Rs.100,000 and Rs.500 for every additional 100,000 capital
7 Statutory Meeting of Shares Holders Annually Annually Quarterly, Semi-Annual & Annually
8 Distribution of Profit Through Annual Dividend Through Annual Dividend Semi-Annual & Annually
9 Audit / Review Annually Annually Quarterly, Semi-Annually & Annually
10 Listing Fee No No 1% of 1/10th of Capital
11 Company Secretary No Qualified Person Required Qualified Person Required
12 Legal Advisor Not Compulsory Compulsory Compulsory
13 Trading Certificates No Required from SECP Required from SECP

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