To facilitate not-for-profit companies in the wake on coronavirus pandemic, the Securities and Exchange Commission of Pakistan (SECP) has relaxed the time period for renewal of license, issued in pursuance of section 42 of the Companies Act, 2017.
The SECP has issued a notification to provide guidelines for renewal of licenses. According to these guidelines, companies whose licenses have expired in the months of February, March, April and May 2020 and have not applied for its renewal will continue to carry on their work and their licenses will not be revoked till June 30, 2020. Upon receipt of their applications, license will be renewed from the date of expiry of their existing license.
However, companies which have applied for renewal of licenses before or after February 1, 2020 with deficient applications are required to respond to the quarries/address the deficiencies latest by May 30, 2020, failing which their license shall be revoked.
Whereas, companies whose licenses were due for renewal before the month of February 2020, and have not applied for renewal, their license shall be revoked in accordance with the provisions of section 42(5) of the Companies Act, 2017. Further, companies, which do not find any difficulty in complying with the requirements of the renewal of their license, may apply in a routine manner.
The SECP’s response to COVID-19 is focused on the health and safety of business workforce all over Pakistan and maintaining continuity of economic activity.