SECP:
The Securities & Exchange Commission of Pakistan (SECP) is the regulatory body in the country to regulate the corporate sector and the capital market with the aim to ensure transparency and efficiency in market.
Types of legal companies:
Single Limited Company
A single member company can be defined as a company with only one member, also referred to as the shareholder.
Not required to pay company’s debts with their personal assets.
PKR 100,000 is considered to be the minimum capital requirement.
Incorporation in 4 weeks.
Public Limited Company
Public limited companies are listed on the stock exchange where it's share/stocks are traded publicly
Not required to pay company’s debts with their personal assets.
Minimum 7 share holders and capital of PKR 500,000 required.
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LAW PPT FINAL.pptx
1. CORPORATE AND BUSINESS LAW
PRESENTATION
SUBMITTED BY:
S.M.KUMAIL ABBAS
YOUSUF FAZAL
M. ADIL JAMIL
HUSSAM UDDIN
SUBMITTED TO:
SIR SAAD SALMAN
2. FORMATION OF A COMPANY
SECP
Securities & Exchange Commission of Pakistan (SECP) is the regulatory body in the country to regulate the corporate
sector and the capital market with the aim to ensure transparency and efficiency in market.
Types of legal companies:
Single Member Company
A single member company can be defined as a company with only one member, also referred to as the shareholder.
Not required to pay company’s debts with their personal assets.
PKR 100,000 is considered to be the minimum capital requirement.
Incorporation in 4 weeks.
Public Limited Company
Public limited companies are listed on the stock exchange where it's share/stocks are traded publicly
Not required to pay company’s debts with their personal assets.
Minimum 7 share holders and capital of PKR 500,000 required.
3. Cont.
Private Limited Company
Two or more persons
PKR 100,000 is the minimum capital requirement.
Any foreign national can be a shareholder, except for those coming from Israel.
Registered address of the company’s office must be in Pakistan
The incorporation time of a limited liability company in Pakistan is generally six weeks.
The financial statements of a private limited company are not public, their shares do not trade
on Pakistan Stock Exchange and their accounts are not required to be audited.
Liability is restricted to the scope of their shareholding; They are not required to pay company’s
debts with their personal assets.
4. This is the e-portal for SECP from where we can easily register our company
step by step.
5. These are the different forms available on SECP site, each form has it’s own
legal status and importance
7. KYAH (Private) Limited
Name
and
surname
(present &
former) in
full
(in Block
Letters)
NIC No.
(in
case of
foreigner,
Passport No)
Father's/
Husband's
Name in full
Nationality(ies)
with any
former
Nationality
Occupation
Usual residential address in full or
the registered/
principal office
other than natural person
Number of
shares
taken by
each
subscriber
(in
figures and words)
Signatures
KUMAIL ABBAS 42000-1502402-1 ALI RIZVI PAKISTANI Sales Manager Gulshan e Iqbal, Karachi Five thousand (5,000)
YOUSUF FAZAL 42000-1502402-2 YOUNUS AFZAL PAKISTANI Supply
Manager
F.B Area Karachi Five thousand(5,000)
HUSSAM UDDIN 42000-1502402-3 HASSAN KHAN PAKISTANI Engineer Gulistan e johar, Karachi Five thousand(5,000)
ADIL JAMIL 42000-1502402-4 FAZIL JAMIL PAKISTANI Accountant Karimabad, Karachi Five thousand(5,000)
Total number of shares taken (in figures and words) TWENTY THOUSANDS
(20,000)
8. STEP 2: DOCUMENTS OF INCORPORATION
Memorandum of Association
It is a legal document prepared during the formation and registration process of a company to define its
relationship with shareholders and it specifies the powers & objectives of company.
Article of Association
Specifies the rules regulations for a company's operations and defines the company's purpose.
Application of company Incorporation (Form 2)
There is no need to create Form 1, Form 21 and Form 29 manually, as eservices system will
automatically generate afterwards.
Availability of Name letter issued by SECP
CNIC copies of all Directors
10. AUTHORIZATION CAPITAL
It is the maximum amount of the capital for which shares can be issued by the Company to shareholders.
PAID UP CAPITAL
Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock.
Paid-up capital of a company can never be more than its authorized capital but it can be equal to the authorized capital.
Face Value
Number of
shares
Total
Authorized Capital 5 20,000 100,000
Paid Up Capital 5 16,000 80,000
Capital Structure
11. STEP 3: DIGITAL SIGNATURES
Witness of our documents will be NIFT ( National Institutional Facilitation
Technologies)
Digital certificate from NIFT for each director of the company
Name Reservation certificate from SECP (Securities & Exchange Commission of
Pakistan)
1. One Login/user ID for one Director of the proposed company.
2. Digital Signatures are mandatory for submitting case through eservices(online)
SBC will fill in the rest of NIFT form and submit at NIFT counter at CRO-SECP
12. STEP 3: DIGITAL SIGNATURES
Attested copies of CNIC of all Directors
Attested copies of availability of name letter issued by SECP
NIFT will deliver digital signatures
NIFT Normal Fee: Rs.1,500 per director
13. STEP 4: FEE OF INCORPORATION/FILING
It is fixed to your share capital
Can be calculated online using Incorporation Fee Calculator
14. STEP 4: FEE OF INCORPORATION/FILING
ONLINE PAYMENT
Facility is available for MCB and UBL account holders only
You can pay via Credit and debit card
15. STEP 4: FEE OF INCORPORATION/FILING
OFFLINE PAYMENT
Can be done by manual challan
Company registration application required
Can be paid at MCB or UBL designated
branches
Post Payment of the fee, SECP
Documents Required
Declaration of compliance
Identification of office’s location
Copies of CNIC/NICOP of the subscribers
NOC/Letter of Intent/ License
Copies of the Memorandum and Articles
of Association with each member’s
signature
16. CERTIFICATE OF INCORPORATION
If any Objection arrives you might receive and email.
Make the required correction and submit the form again
7 working days time
You will receive a confirmation email
Incorporation Certificate can be picked from Company Registration office (CRO)
17. Register Company for Income/Sales Tax
DOCUMENTS REQUIRED
Name of company and business name
Business address, Phones, Email, Contact Number
Accounting period
Principal business activity
Company type, like public, private, trust, NGO etc.
Date of registration
Incorporation certificate by (SECP)
Registration certificate
Trust deed in case of trust
Name of representative with CNIC or NTN.
Last Paid Utility Bill
Place is Rental/Owned
18. Register Company for Income/Sales Tax
Use Iris Portal credentials to login. Once logged in, the person shall select Form 14(1) (Form of
Registration filed voluntarily through Simplified) (Sales Tax) from the Registration.
Form 181 (Form of Registration filed voluntarily) (Income Tax). Scan and attach given above documents
and submit the application and Form 181 (filed for modification) Income Tax.
Every person engaged making taxable supplies including zero-rated supplies in Pakistan and is importer;
exporter; seller; distributor; retailer; or wholesaler of goods is required to get registered for sales tax with
Federal Board of Revenue (FBR).
19. Annual Returns (Form A/B)
Every company required to file an annual return once in a year.
Giving details of directors, Chief executives, CFO, Secretary, Legal advisor, Registered office
address, member and share capital.
A company having a share capital files annual return on Form-A
A company having not a share capital files annual return on Form-B
20. FORM 29
Form 29 is compulsory document for every company, which is also submitted annually or
any change of company structure like, change in Director, CEO appointment / resign,
appointment of Legal Adviser, Appointment of company secretary, CFO appointment.
Form 29 is required to be filed within 15 days from the date of appointment or any change
among them.
Single Member Company (SMC) Registration. SMC is a private company which has only one
member/director.
24. Articles of Association
Shares
Transfer and Transmission of Shares
Alteration of Capital
General Meetings
Votes of Members
Power and duties of directors
Filling of vacancies
Dividends and Reserve
Accounts
26. Form - II
Part 1
Part 2
Company Information
Capital Structure
Special Business Information
Company Subscribers, Directors Chief Executive Officers
Company limited by shares
Part 3