Entrepreneurship on the rise: SECP registers 19,251 companies in last 8 months

SECP registered 19,251 new companies in the July-March period of the fiscal year 2020-21

Pakistan’s Securities and Exchange Commission of Pakistan (SECP) witnessed 72 percent growth in the registration of new companies as 2,513 new companies were registered in March 2021 despite the COVID-19 challenges, compared to the same month last year. This is the highest number of companies ever registered in a single month, SECP said.

In March, nearly 99 percent companies were registered online and 25 percent of applicants completed the incorporated process the same day. At least 260 foreigners also registered from overseas.

65% are private limited companies

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

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.

Types of companies registered

  • Construction and real estate sector: 414
  • Trading: 393
  • IT: 311
  • Services: 247
  • Food and beverages: 110

Highest number of companies registered in Islamabad

The highest numbers of companies, at least 850 were registered in Islamabad, followed by 751 in Lahore and 385 in Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 176, 170, 104, 43, 22 and 12 companies respectively.

39% increase in company registration as compared to 2020

SECP has incorporated 19,251 companies in the first three quarters of the fiscal year (July to March 2020-21), representing an annual growth of 39 percent, compared to the same period last year. The SECP registered 14,493 companies in 2018-2019 and 16,945 companies in 2019-2020.

The total number of registered companies with SECP has now reached 139,620. Out of the total registered companies, 118,280 companies are active, which accounts for 85 percent of total companies which are filling their annual returns.

The reforms introduced by SECP for ease of doing business and digitalization are resulting in the continued growth of entrepreneurship in the country, the organization said.

Salma Khan
Salma writes on topics ranging from education to technology to business. She can be reached at Twitter and Facebook.

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