SECP registration of companies up 39 percent

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) witnessed 39 percent growth in incorporation of companies during the three quarters of FY2020-21, a statement said on Friday.

The commission registered 19,251 companies, representing an annual growth of 39 percent when compared with 16,945 companies registered in FY2019-20. The SECP registered 14,493 companies in FY2018-19.

A total of 139,620 have now been registered with the SECP, the statement added. Of these, 118,280 companies were active, which means 85 percent of the total companies werefiling their annual returns.

In March 2021, despite the challenges of Covid-19, the SECP witnessed 72 percent growth in registration of new companies. It registered 2,513 new companies, compared to March 2020, which was the highest in a single month.

Around 99 percent companies were registered online, with 25 percent applicants completing the incorporation process the same day. This month, 260 foreign users were also registered from overseas.

Around 65 percent companies were registered as private limited companies, while around 31 percent were registered as single member companies, with the remaining five percent were public unlisted companies, not for profit associations, trade organisations, foreign companies and limited liability partnerships.

Construction and real estate sector led registrations by incorporating 414 companies. The sector was followed by trading with 393 companies, IT 311, services 247, and food and beverages, which registered 110 companies.

Foreign investment has been reported in 43 new companies. These companies have foreign investors from Afghanistan, Australia, China, Germany, Hungary, Iran, Korea South, Mauritius, Norway, Philippines, South Africa, Spain, Sweden, Thailand, Turkey, the UAE, UK and the US. The highest numbers of companies, ie 850 were registered in Islamabad, followed by 751 and 385 companies registered in Lahore and Karachi, respectively.