ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has struck off 3,000 inactive companies from its records, updating registration data of companies not involved in any business activities.
According to the data released by the SECP, the number of incorporations has almost doubled from 95,621 by December 2018 to 158,537 till end December 2021. During the last three years, the incorporation of companies now stands at 62,916, indicating growth of 67 percent.
This growth has been witnessed despite the fact that 3,000 inactive companies have been strikes off from its books to streamline the working of registered companies. This was the first time that SECP removed such a significant number of inactive companies from its register.
The deletion of 3,000 companies from the records of the SECP would have an impact on the overall numbers of the corporate registration data, but these inactive companies were required not to be part of the SECP’s database of active companies. Moreover, many inactive companies, which requested for de-registration or delisting, have been facilitated after fulfilment of laid down rules and regulations.
The SECP has register 16,451 new companies in 2019, followed by 20,349 companies in 2020 and 26,116 companies registered in 2021, raising the total numbers from 95, 621 in December 2018 to 158, 537 in December 31, 2021, indicating that nearly half of total incorporated companies in Pakistan have been registered in the past three years.
The trend of growth is attributed to digitalization and automation, introduction of simplified combined process for name reservation and incorporation, very low level of fees, and assistance provided for incorporation by the newly established Business Centre.
Construction and real estate sector remained pre-eminent in terms of new incorporations during this time period, with 10,484 new companies registered since 2018.
Trading and IT sectors remained close second and third leading sectors with 9,962 and 7,671 new incorporations during the same time period. Where on one hand the incumbent government’s pro-real estate policies gave impetus for newer businesses to start and expand, SECP’s policies geared towards improving ease of doing business and investor confidence also proved beneficial for the corporate industry.
Major growth was also witnessed in newly registered companies in services and food and beverages sectors as well, with new incorporations standing at 6,300 companies and 2,501 companies, respectively. Moreover, during the time period under concern, the SECP has also introduced electronic incorporation certificates and digital certified true copies, has also set up an exclusive portal for banks to accelerate account opening process for businesses, and has also established an online channel for payments to the SECP itself.
This improved focus on digitization and facilitation to users have shown tangible results in the form of consistently increasing numbers of businesses options to get registered in Pakistan.
Copyright Business Recorder, 2022
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