The Security and Exchange Commission of Pakistan (SECP) registered 16,929 new companies in the financial year 2019-20, compared to 2018-19, indicating a growth of 17%, according to the annual report of SECP. This has raised the total number of registered companies to 120,395.
In the new incorporations, approximately 71% of companies were registered as private limited companies, 26% were as single-member companies, 3% as public unlisted, association’s not-for-profit, trade organizations, foreign companies, and limited liability partnership.
Similarly, the education sector registered 609 new businesses, corporate agricultural farming followed with 496, engineering with 437, marketing and development with 398, textile with 370, pharmaceutical with 349, mining and quarrying 294, healthcare with 284, transport with 282, chemicals with 264, auto and allied with 195 companies.
Likewise, the fuel and energy sector registered 189 new companies, logging followed with 186, e-commerce with 181, communication with 165, cosmetics and toiletries with 157, broadcasting and telecasting with 152, power generation with 142, cable and electric goods with 140, paper and board with 134, steel and allied 74, arts and culture with 53 companies.
Furthermore, foreign investment was reported in 550 new companies, while 27 foreign companies established places of business in Pakistan during the last fiscal year.
During the period under review, SECP issued 46 licenses to not-for-profit associations under section 42 of the Companies Act, 2017.
Besides, the licenses of 45 not-for-profit associations were renewed, while licenses of 30 non-profit associations were revoked due to non-compliance.
As of June 30, 2020, the number of companies licensed under section 42 of the Companies Act totaled 933.
The schemes of arrangement, amalgamation, and reconstruction enable companies to consolidate their resources, achieve synergies in business operations, and exploit tax-planning opportunities.
It also enhances a company’s capacity to deal with systemic risk and increase its market presence through conglomeration. Presently, schemes of arrangement of
small-sized companies are approved by the SECP.
The SECP’s Company Law Division processes applications filed by listed and unlisted companies under various provisions of the law for granting regulatory approvals under the applicable legal regulatory framework.
Source: TechJuice
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