ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is removing technical glitches during a major transformation from an old/outdated return filing system to a new company registry called “eZfile”.
The SECP officials were responding to issues raised by the companies in the new system. Some experts pointed out that the SECP has launched “eZfile” on February 15, 2024, replacing the previous ‘eServices’ filing system. In the new system there are following various issues companies are facing while filing the returns on “eZfile” due to the transfer of data from one system to another:
(i) In the addresses of foreign directors the word “Pakistan” is appearing in the foreign director’s addresses as well as their nationalities are also wrong.
(ii) The shareholders detail is mostly incorrect and sometimes not appearing and it is also not editable.
(iii) Some attachments are also missing like “Memorandum and Articles of Association” while filing the documents for increase in authorized capital.
(iv) In some companies, the detail of auditor is appearing in the legal advisor Column or vice versa.
They pointed out that it is the prime responsibility of SECP to transfer the data from E-Services to “eZfile” accurately. The SECP should depute staff to correct it urgently to save time. The SECP has launched “eZfile” in haste and it will take time to correct errors.
Under the Companies Act, there are the timelines for filing many statutory returns. Thus, taxpayers are unable to timely file the returns in “eZfile” system. Resultantly, they are filing returns manually or with the late Fee which will increase the income revenue of SECP this is again very alarming.
Responding to these issues, the SECP officials informed that the SECP has envisioned a digital transformation programme named Leading Efficiency through Automation Prowess (LEAP) to position SECP as a role-model regulator through end-to-end automation of its business processes. The launch of a new company registry called “eZfile” was an integral part of the LEAP programme, which consisted of several phases. The first phase of this initiative, focusing on the complete automation of the Limited Liability Partnership (LLP) registry, was launched in June 2023. On February 15, 2024, the SECP announced the transition from our old online filing system, ‘eServices’, to a new, more sophisticated, and user-friendly online portal called “eZfile”.
The new registry, “eZfile” provides complete end-to-end digitalization of the incorporation of companies as well as automated various post-incorporation processes as well. This portal has an enhanced user interface and offers several advanced features to support the ease of accessing services and filings with SECP, such as guiding material, built-in checks, and pop-up messages that guide users and companies along the filing method and help them understand the requirements of the law while filing statutory returns, SECP officials said.
It also encompasses communication features, allowing users to receive updates, notifications, and announcements pertaining to corporate registry matters. Major benefits envisaged through the implementation of “eZfile” include an end-to-end digitized system, auto-alerts and reminders for mandatory compliances, a 360-degree view of a company, and process categorization on dashboards so as to keep the applicant informed at every step.
Moreover, in order to facilitate the corporate sector in complying with the applicable regulatory requirements, SECP has issued a consolidated version of ten separate regulations in the form of the “Companies Regulations, 2024”.
These regulations cover regulatory requirements applicable to company incorporation, post-incorporation compliance and reporting, issuance of licenses under Section 42 of the Companies Act, 2017, further issue of share capital, group registration, easy exit of companies, and registration of intermediaries, etc. For ease of doing business and to facilitate the external user, several procedures have been simplified. In the proposed regulations, the number of regulations has been reduced from 169 to 148. Several forms have been merged, resulting in a substantial reduction of existing forms from 75 to only 28. Applications and annexures (13 Nos.) have also been reduced to six (6) applications only. Now, these new forms have been made part of the “eZfile”.
It is pertinent to mention here that it is a big transformation from an old, outdated system to a new one. This transformation not only signifies a shift towards efficiency and convenience but also heralds a new era of innovation and progress. This transformation involves modifications and simplifications of various existing statutory forms/processes, SECP officials said.
During this transition period and migration of data, as expected, users have been experiencing some technical glitches. However, the SECP is continuously engaged with its development team to resolve issues. A significant number of issues, as pointed out like data migration, filing fees, auditor-related issues, attachment issues, etc., have been successfully resolved for users who submitted complete information. The system will be stable within a short span of time, SECP officials added.
Copyright Business Recorder, 2024
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