The Securities and Exchange Commission of Pakistan (SECP) has introduced substantial increases in fees for the submission of documents across various categories of companies. The revisions, announced through SRO 1806(I)/2024, amend the Seventh Schedule of the Companies Act 2017 and come as part of the Commission’s latest regulatory updates.
New Fee Structure for Company Registration
Under the amended regulations, the fees for registering companies with a nominal share capital not exceeding Rs. 100,000 have been significantly raised.
- Electronic Submissions: The fee has increased from Rs. 1,100 to Rs. 5,500.
- Manual Submissions: The fee has surged from Rs. 2,200 to Rs. 10,000.
Changes in Name Reservation Fees
The SECP has also increased fees for reserving proposed company names, an essential step in the company registration process.
- Electronic Submissions: The fee has risen from Rs. 200 to Rs. 1,000.
- Manual Submissions: The fee has jumped from Rs. 500 to Rs. 2,000.
Group Company Registration Fees
The SECP has introduced a uniform fee of Rs. 100,000 for registering companies as a group under Regulations 138/140 of the Companies Regulations 2024. This applies to both electronic and manual submissions.
Additional Fee Increases
For applications seeking approval, sanction, permission, exemption, direction, or confirmation from the SECP or the registrar, a non-refundable application processing fee has been introduced. The exact fee for such applications remains subject to the specific nature of the request and will be detailed in the SECP’s directives.
Implications of the Fee Hikes
These fee revisions are aimed at streamlining operations and aligning regulatory costs with administrative demands. However, the substantial increases, particularly for manual submissions, may pose financial challenges for smaller businesses and startups seeking registration.
Broader Regulatory Context
The fee changes are part of the SECP’s ongoing efforts to modernise and regulate Pakistan’s corporate sector effectively. By incentivising electronic submissions through relatively lower fees, the Commission is encouraging companies to adopt digital processes.
Industry Reaction
The fee hikes have sparked mixed reactions from stakeholders. While some acknowledge the need for regulatory improvements, others have expressed concerns about the financial burden on new and small-scale businesses.
The SECP’s amendments to the fee structure underscore its commitment to improving compliance and facilitating efficient regulatory processes, but they also place a greater financial responsibility on companies navigating these procedures.