ISLAMABAD: Taking a major step to facilitate the corporate sector, the Securities and Exchange Commission of Pakistan (SECP) has decided to drastically reduce the number of forms, applications, declarations and returns for different types of companies for ease of doing business.

The SECP has issued SRO 604(I)/2021 to issue draft amendments to the Companies (General Provisions and Forms) Regulations, 2018.

Under the companies (General Provisions and Forms) Regulations, 2018, the number of forms and returns to be filled by different companies stood at 45. It has been proposed to reduce the number from 45 to 25 forms and returns.

The draft companies (General Provisions and Forms) Regulations, 2018 has also issued more simplified forms and declarations, replacing the existing forms.

Sources told Business Recorder that the reduction in the number of returns and forms for the companies to reduce the compliance requirement for the corporate sector, reduce their cost, avoid duplication, ease of doing business, reduce the post registration compliance requirements and withdraw unnecessary conditions under different forms and returns.

Under the revised rules, pursuant to the provision of section 506 of the Companies Act, formats of forms and returns are specified which shall be used in all matters to which those forms and returns refer. The draft revealed that now there would be a Form-A and Forms 1-25 as compared to existing 45 forms and applications.

According to the draft rules, the SECP has also issued a procedure for issuance of notice of rectification of register of members / directors. The SECP stated that when the court makes an order for rectification of the register of members or register of directors in respect of a company, the company shall file notice of the rectification with the registrar within fifteen days from the receipt of the order, giving therein, in addition to other facts, if any, the name of the court, the date of order, case number and case title, details of rectification ordered by the court and the rectification as made in compliance with the order. The company shall file relevant statutory returns with the registrar which becomes due for filing after rectification is made in accordance with court order, SECP added.

Copyright Business Recorder, 2021