The Securities and Exchange Commission of Pakistan (SECP) saw a surge in new company registrations in January 2023, with a total of 2,409 new companies added to the existing 185,173. During the month, a new record was set with 174 companies being registered in a single day. The paid-up capital of newly incorporated companies was reported at Rs 2.7 billion.
Of the new companies, 57% were registered as private limited companies, 39% as single-member companies, and 3% as unlisted public companies, not-for-profit associations, trade organizations, and limited liability partnerships. The vast majority of the companies were registered online, with 101 foreign users also registering from overseas.
The real estate development and construction industry was the leading sector for new company formations, with 407 companies, followed by information technology (334), trading (321), services (250), and tourism (99). Other industries with significant new company registrations included food and beverage, education, e-commerce, pharmaceuticals, textile, marketing & advertisement, engineering, healthcare, and chemical production.
Foreign investment was reported in 62 new companies, with investors from countries including Afghanistan, Canada, Chile, China, Egypt, Germany, Iran, Iraq, Jordan, Kenya, South Korea, the Netherlands, Nigeria, Norway, Oman, Singapore, Switzerland, Tanzania, the UK, and the US. China was the largest contributor of foreign investment, with 32 companies, followed by Chile and Canada with 3 companies each.
As a result of the SECP’s integration with the Federal Board of Revenue (FBR) and other provincial agencies, 2,255 firms were registered with the FBR for the creation of a National Tax Number (NTN), 40 companies with the Employees’ Old-Age Benefits Institution (EOBI), 41 companies with the Provincial Employees Social Security Institution (PESSI/SESSI), and 30 companies with the excise and revenue department.
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