SECP to launch AI-powered system for swift company name approvals

The Securities and Exchange Commission of Pakistan (SECP) is set to introduce an AI-powered Name Reservation System to enhance efficiency and eliminate subjectivity in evaluating company name applications. 

The move is part of broader efforts to simplify the company registration process and promote ease of doing business.

According to details shared by the SECP, a key change in the guidelines is the relaxation of rules for using “Pak” or “Pakistan” as a prefix or suffix in company names. However, any name including “of Pakistan” will require government approval, as it may imply affiliation with public sector entities.

The commission has also issued new name reservation guidelines, replacing the existing FAQs. These guidelines clarify the legal and regulatory framework, outline the procedure for name reservation, and provide tips for selecting appropriate company names. 

The updated criteria address issues related to name resemblance, numeric values, and specific words for licensed entities and modarabas.

The SECP emphasized that implementing the AI-powered system will significantly reduce processing time, minimize human intervention, and enhance accuracy in company name approvals. 

The automated mechanism will expedite decision-making, supporting the government’s corporatisation drive and improving Pakistan’s business environment.

In recent years, the commission has undertaken multiple reforms to simplify the incorporation process, making it more efficient and cost-effective. The AI-driven initiative is expected to be a major step in fostering transparency and promoting business-friendly policies in the country.