The Securities and Exchange Commission of Pakistan (SECP) has issued a strict directive requiring all companies to submit Ultimate Beneficial Ownership (UBO) details through Form-19, warning that failure to comply by April 30 may result in fines of up to Rs. 10 million.
The regulator has warned that directors and responsible officers may be fined up to Rs. 1 million, while non-compliant companies themselves could face penalties reaching Rs. 10 million under the Companies Act, 2017.
According to the SECP, all companies are legally required to submit information about their ultimate beneficial owners along with their annual returns. The disclosure must be filed through Form-19 available on the SECP’s online eZfile system.
The requirement falls under Section 123A of the Companies Act, 2017, which makes submission of UBO information mandatory for every registered company.
The SECP said disclosure of ultimate ownership is critical for improving corporate governance, ensuring transparency in company structures, and preventing misuse of corporate entities for money laundering and other illegal financial activities. The requirement also forms a key part of Pakistan’s anti-money laundering framework.
Ultimate Beneficial Owners are defined as individuals who ultimately own or exercise effective control over a company, whether directly or indirectly. Companies must disclose such individuals even if their names do not appear formally as shareholders or directors.
The regulator noted that several companies have yet to comply with this legal obligation and directed them to complete Form-19 filings without delay.
Companies can submit the declaration by logging into their eZfile accounts on the SECP portal, selecting Form-19, and providing complete details regarding ownership structure, shareholding or control percentages, and particulars of beneficial owners.
In addition, companies are required to maintain an internal register of beneficial owners and update the information annually or whenever any ownership change occurs.
The SECP has set April 30 as the final deadline and warned that legal proceedings will be initiated against companies that fail to submit Form-19 within the stipulated timeframe.
1 crore is pocket change for these people. Just say the companies shall be liable to pay high taxes. That’s all