The Securities and Exchange Commission of Pakistan (SECP) has registered 1,460 new companies in April and a majority of them were registered within four hours.
As compared to the corresponding month of the last financial year, the growth in the incorporation of companies was 29 percent, raising the number of registered companies to 99,291.
This massive increase in new incorporations is the result of SECP’s reforms in ease of doing business, i.e. introduction of a simplified combined process for name reservation and incorporation, one window facility for company incorporation and NTN generation, reduction in fee and enhanced assistance of investors by facilitation wings established by the SECP.
SECP has upgraded the browser compatibility of its website, and now in addition to Internet Explorer, other browsers such as Google Chrome, Mozilla Firefox, and Microsoft Edge can be used for name reservation and company incorporation processes.
Consequently, 95 percent of companies were registered online. During the month, 73 percent of companies were registered as private limited companies, while 24 percent were registered as single-member companies.
Three percent were registered as public unlisted companies, not for profit associations, foreign companies and limited liability partnerships (LLP).
The trading sector took the lead with the incorporation of 260 companies, services sector with 174, I.T. with 163, construction 154, tourism 81, real estate development 67, food and beverages with 61, marketing and advertisement 42, education 41, corporate agricultural farming 38 and textile with 33 incorporations.
Thirty companies belong to engineering, 26 to transport, 25 to healthcare, 21 each to pharmaceuticals, and fuel and energy, 20 to mining and quarrying, 19 to communication, 17 to cosmetics and toiletries, 16 each to auto and allied, and logging, 15 to chemicals, 14 each to broadcasting, and paper and board, 13 to cable and electric goods. 79 companies were registered in other sectors.
Foreign investment has been reported in 66 new companies. These companies have foreign investors from Canada, China, Denmark, Germany, Jordan, Korea South, the Netherlands, Nigeria, Norway, Oman, Saudi Arabia, Singapore, Turkey, UAE, UK, Ukraine, and the US. The highest number of companies, i.e. 503 were registered in Islamabad, followed by 406 and 311 in Lahore and Karachi respectively.
The CROs in Peshawar, Multan, Gilgit-Baltistan, Faisalabad, Quetta, and Sukkur registered 79, 58, 38, 38, 21 and 6 companies respectively.