SECP revises policy: Security companies required to raise capital to over Rs 10 million

The Securities and Exchange Commission of Pakistan (SECP) has revised policy for establishment and functioning of private security companies under which they are required to increase authorized and paid-up capital up to more than Rs 10 million. The SECP has issued circular number 8 of 2018 on Wednesday, barring single member companies from forming private security companies.
Under the revised policy issued by the SECP for private security companies here on Wednesday, in terms of Ministry of Interior's letter dated 4.6.2018 forwarding policy on establishment and functioning of private security companies, 2018 (the policy), new proposed and existing security companies are required to increase and maintain their authorized capital as well as paid-up capital of more than Rs 10 million. In addition, as per policy, single member companies are not eligible to be formed as private security company.
In this regard, it is advised that the following documents will be filed with the relevant Company Registration Office (the CRO) of the commission if the authorized and paid up capital requirements are not already fulfilled:-
By the new proposed private security companies, the SECP has prescribed documents including duly signed memorandum and articles of association showing authorized capital and paid-up capital of more than Rs 10 million (say at least Rs 10.1 million) and in already filed cases which are waiting for NOC, duly revised and signed memorandum and articles of association; and
By the existing private security companies already registered with the commission, the SECP has prescribed documents including Form-7 and form-26 along with revised memorandum and articles of association to increase their authorized capital, and Form-3B and Form-3 to increase their paid up capital by issue of further shares in accordance with the provisions of section 83 of the Companies Act, 2018 (the Act) along with reports or documents as may be required in terms of section 70 of the Act.
In case of single member companies having objects of a private security company, whether new proposed or already registered, necessary documents to form or to convert into a normal private company shall be filed along with documents relating to additional subscriber(s)/ director(s), which shall be forwarded for security clearance and grant of NOC by the M/o Interior.
In case of failure by the existing single member or private security companies to file the required documents with the CRO to meet the above requirements, the cases of such companies shall be referred to Ministry of Interior for further appropriate action, the SECP added.