The Securities and Exchange Commission of Pakistan (SECP) unveiled the consolidated Companies Regulations, 2024, aimed at providing a comprehensive framework to facilitate both local and foreign companies conducting business operations in Pakistan.
The newly issued S.R.O. (I)/2024 by the SECP encompasses the Companies Regulations, 2024, which will be immediately enforceable. This consolidated set of regulations encompasses various aspects of company operations, including incorporation procedures, post-incorporation compliance, reporting requirements, issuance of licenses under Section 42 of the Companies Act, 2017, share capital management, group registration, streamlined company exit processes, share buyback mechanisms, registration of intermediaries, and more.
With an emphasis on simplifying compliance procedures, the Companies Regulations, 2024 include standard forms and application samples to facilitate adherence to regulatory requirements. The implementation of these regulations will be rolled out gradually in a phased manner.
In tandem with the introduction of the Companies Regulations, 2024, the SECP has annulled several existing regulations to streamline the regulatory landscape. Notably, regulations such as the Companies (Incorporation) Regulations, 2017; Companies (General Provisions and Forms) Regulations, 2018; Companies (Registration Offices) Regulations, 2018; Associations with Charitable and Not-for-Profit Objects Regulations, 2018; Intermediaries (Registration) Regulations, 2017; Group Companies Registration Regulations, 2008; and Unlisted Companies (Buy-Back of shares) Regulations, 2023, have been repealed to align with the consolidated framework.
One significant aspect addressed in the new regulations pertains to the process of reserving a company name or effecting changes to it. Henceforth, individuals seeking to establish a company will have the flexibility to submit either a separate application for name reservation or opt for a combined application for both name reservation and incorporation.
The issuance of the consolidated Companies Regulations, 2024 underscores the SECP’s commitment to fostering a conducive business environment and promoting ease of doing business in Pakistan. By streamlining regulatory processes and enhancing clarity, these regulations aim to encourage investment, spur economic growth, and facilitate the smooth functioning of businesses across various sectors.
