SECP reveals draft regulations under the Companies/LLP Act

KARACHI

The Securities and Exchange Commission of Pakistan (SECP) has notified the draft Companies (Incorporation) Regulations, 2017, draft Intermediaries (Registration) Regulations, 2017 and draft Limited Liability Partnership Regulations, 2017, to obtain public opinion. All the regulations have been placed on the SECP’s website.

The draft companies (incorporation) regulations, 2017, specify a simplified procedure for company incorporation process, including the procedure for reservation of name of proposed company, a list of words prohibited for use as company name, criteria for use of certain names by entities undertaking specialized businesses and procedure for company registration.

The draft intermediaries (registration) regulations, 2017 specify requirements for intermediaries, who will be authorized to file statutory returns/documents/reports to the registrar or the SECP on behalf of companies. The salient features of regulations include eligibility requirements for registration, the procedure to obtain registration, renewal and cancellation of registration, a mechanism for appointment and removal of authorized intermediary by the company and duties and responsibilities of authorized intermediary. The existing intermediaries shall be required to obtain registration with the SECP within 90 days of notification of regulations.

The Limited Liability Partnership (LLP) is an alternative form of business establishment, which has the flexibility of a general partnership and will avail all the advantages of a limited liability company. The draft Limited Liability Partnership Regulations, 2017, specify the form and manner of registration of LLP, fitness and propriety of designated partners, accounts and audit requirement and conversion of existing firms and private limited companies to LLP.

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