Securities and Exchange Commission (SECP) has taken major initiative by slashing the incorporation cost from PKR 1500 to a meager PKR 100 for its new User Registration System under its Electronic Service. This is indeed a breakthrough in the registration process for companies’ registration as it will make the process more efficient and quick. According to the officials, the turnaround time under the registration of e-services will also shrink from days to minutes.
The Chairman of SECP, Mr. Hijazi inaugurated the new user registration system during the Financial Reporting Workshop for economic journalists arranged by the SECP last week. He said that this facility will be a major step for the potential growth in the corporate sector.
E-Service and the User Registration System
E-service is a web portal launched by SECP in order to ease the process of company incorporation; specially the process of filing of forms and documentation. These activities will now be carried out electronically and handled by registrars.
The new User Registration System will eliminate the tiresome process of getting digital signatures from NIFT. Under the revamped registration process of e-services, user will get access to a user login, password and a PIN code. This process is available for you regardless of your nationality i.e. a Pakistani national or a foreigner.
The required documents can easily be submitted to the commission and the designated registrar online. SECP has made it a one-time registration process without the need of an annual renewal, as is the current practice against a fixed fee each time.
Special facility has been provided to small companies having an authorized capital of PKR 100,000 as they have to pay the filing and incorporation fee of only PKR 2,000. This amount is payable for online filing while offline filing fee is PKR 4,000 for small companies.
SECP has made major changes in its processes during December 2016 by establishing incorporation and facilitation desks in multiple cities. Desks have been established in Karachi, Lahore and Islamabad in order to provide speedy (single day) incorporation services to a company.
While inaugurating the registration system, Hijazi shed light on the reforms introduced by SECP and also their benefits. Some of the vital reforms include risk management systems and surveillance system to prevent any fallacious activities. He also assured that these systems will protect investors’ interests in the long run.