Introduction and brief discription,type how to register a company and much more

1. Securities & Exchange
Commission of Pakistan
Group Participants:
Wajih Ul Hassan BSE181024
Hamail Naqvi BSE181022
Mohammed Srosh BSE181028
Sohaib Shaikh BSE181037

2. Introduction
The Securities & Exchange Commission of Pakistan
(SECP) is the financial regulatory agency in Pakistan whose
objective is to develop a modern and
efficient corporate sector and a capital market based on
sound authority principles, in order to encourage investment
and foster economic growth and prosperity in Pakistan.

3. Establishment
The Securities and Exchange Commission of Pakistan (SECP) is
the successor to the erstwhile Corporate Law Authority (CLA),
which was an attached department of the Ministry of Finance. The
process of the CLA's restructuring was started in 1997 under the
Capital Market Development Plan of the Asian Development
Bank (ADB). The parliament passed the Securities and Exchange
Commission of Pakistan Act, which was promulgated in December
1997. Consequently, the SECP, having an autonomous status,
became operational on January 1, 1999.[1] The Act gave the
organization the administrative authority and financial autonomy to
carry out the reform program for Pakistan’s capital market.

4. The business proposed to be undertaken by a company is
mentioned in clause III of its Memorandum of Association,
which relates to objects of a company. The Companies
Ordinance, 1984 (the Ordinance) allows a company to
alter the object clause of its Memorandum of Association
with the approval of the Securities & Exchange
Commission of Pakistan (SECP), on the petition filed by
a company within 60 days of the passing of Special
Resolution, for the reasons provided under section 21 of
the Ordinance and the procedure laid down under rule 3
read with
rules 28, 30 and 32 of the Companies (General
Provisions and Forms) Rules, 1985 (the Rules).
Memorandum Associations &
Article Association of a
Company

5. The memorandum of association should have
following contents
1.The name of the company that required registration and also whether it is a
company limited by shares, limited by guarantee or any other form of
business.The place also specifying the province where the registered office of
the company is going to be.
2.The basic objective of the registration of the company or in other words the
reason why the company is to be registered and the business it is going to
undertake. In case the company is going to be registered as Private Limited
company or any other form of company the fact shall also be mentioned that
the company is limited company and that the liability of the members of the
company is going to be limited up to the amount of unpaid capital in case of
Private Limited company.
3.The amount of share capital shall also be mentioned in the memorandum of
association with which the company proposes to get registered. The
distribution of the share capital into share of definite amount is also
mentioned in the memorandum of association.
4.Every subscriber or shareholder mentioned in the memorandum of
association of the company shall take at least one share it is not possible to
take half share. The number of shares each member of the company
proposes to take shall write opposite to his name that how many shares have
been taken by him.

6. Companies registered in Pakistan are allowed to make
alteration in their memorandum of association for the
following reasons:
o A company registered in Pakistan can make changes in its memorandum to
carry on business more economically or more efficiently.
o Registered companies in Pakistan can make alteration in its memorandum of
association to attain its purpose by new or improved means.
o Changes are also allowed in the memorandum if the company registered in
Pakistan is proposing to enlarge the area of its operations.
o A company can also make changes in the memorandum of association to carry
on any other business which can be conveniently be carried with the existing
business of the company.

7. cont.
o Similarly modification can also be made in the memorandum of association of
the company to restrict or abandon any business mentioned in the
memorandum of association.
o Changes are also made by companies in their memorandum of association to
sell or dispose of whole or part of their business.
o Sometimes changes are also made in the memorandum of association of the
company registered in Pakistan to amalgamate its business with any other
company.

8. The SECP is a collegiate body with collective responsibility.
The SECP is divided into the following divisions:
•Company Law Division
•Securities Market Division
•Specialized Companies Division
•Insurance Division
•Adjudication Division
•Prosecution and Legal Affairs Division
•Support Services Division
Organization

9. SECP’s main functions include; regulation of securities
market and related institutions like Central Depository
Company (CDC), Credit Rating Companies and Modarabas
(funds operating on the basis of Islamic economic principles);
administration of the company law; regulation of non-banking
finance companies like leasing companies, investment
banks and mutual funds, regulation of insurance business
and private pensions. One of the important functions of the
SECP is the incorporation/registration of companies. This
task has been entrusted to the Registration Department,
Company Law Division which has its field offices known
as Company Registration Offices (CROs) for the
purpose of incorporation / registration of different
type of companies.
Functions

10. For the convenience of general public, promoters
and directors of companies, SECP has established
its eight CROs at Islamabad, Karachi, Lahore,
Peshawar, Faisalabad, Multan, Sukhur and Quetta.
Online facilities for incorporation of companies and
filing of returns have been made available.
Registration of companies and monitoring of their
working according to law, functions of CRO’s
include providing services and guidance and also to
ensure that the companies and their directors
comply with the statutory requirements as
provided under the Companies Ordinance, 1984
(the Ordinance).
INCORPORATION OF A COMPANY

11. •Step 1: Approval of Company Name
•Step 2: Submission of Documents
•Step 3: Certificate of Incorporation
•Step 4: Deposit of Shares
•Step 5: Registration of Income, Sales, and Professional
Taxes
Registering a new company

12. Branch Office
A branch office is a suitable alternative to company
registration if your company wants to have a presence in
Pakistan without setting up a separate legal entity.
Liaison -Office
If you want to promote your products in Pakistan, you can set
up a 100% foreign-owned liaison office here.
Besides product promotion, you can also provide technical
advice and assistance, explore the various possibilities of
joint collaboration, and export promotion in Pakistan.
However, this type cannot engage in commercial or trading
activities and it is not subject to any minimum capital either.
Alternatives to company registrationin Pakistan

13. •Adding value through key relationships
•Building the relationship with the directors
•Relationship with independent directors
•Relationship with the independent Director and non-
executive directors
•Relationship with independent directors and Chairman
•–Conclusion
The role of the company secretary in Pakistan- current
perspectives