In order to facilitate not-for-profit companies in the wake of the ongoing pandemic, the Securities and Exchange Commission of Pakistan (SECP) has relaxed the time period for renewal of licenses issued in pursuance of section 42 of the Companies Act 2017.
SECP has issued a notification to provide guidelines for the renewal of licenses. According to these guidelines, companies whose licenses have expired in the months of February, March, April, and May 2020 and have not applied for its renewal shall continue to carry on their work and their licenses shall not be revoked till June 30, 2020.
Upon receipt of their applications, the license shall be renewed from the date of the expiry of their existing license.
However, companies that have applied for renewal of licenses before or after February 01, 2020, with deficient applications are required to respond to the quarries/address the deficiencies latest by May 30, 2020, failing which their license shall be revoked.
Whereas companies whose licenses were due for renewal before the month of February 2020, and have not applied for renewal, their license shall be revoked in accordance with the provisions of section 42(5) of the Companies Act 2017. Further, companies, which do not find any difficulty in complying with the requirements of the renewal of their license, may apply in a routine manner.
SECP’s response to COVID-19 is focused on the health and safety of the business workforce all over Pakistan and maintaining continuity of economic activity.