The Securities and Exchange Commission of Pakistan (SECP) marked a significant stride in economic development by registering 2,463 new companies in the month of October 2023. This surge brings the total number of registered companies to an impressive 205,456, with a cumulative capitalization of PKR 4.24 billion for the newly incorporated entities.
A breakdown of the registered companies reveals that 56% opted for the private limited company structure, while 41% chose to register as single-member companies. The remaining 3% diversified into public unlisted companies, not-for-profit associations, trade organizations, limited liability partnerships (LLPs), and foreign companies. Remarkably, nearly 99.6% of these registrations were processed online, showcasing the SECP’s commitment to digitization.
The IT sector emerged as the frontrunner in incorporations, boasting 326 new companies. It was closely followed by trading (322), services (298), real estate development & construction (290), education (107), tourism (100), food & beverages (90), ecommerce, and mining & quarrying (67 each). Other sectors contributing to this surge include corporate agricultural farming, marketing & advertisement, textile, pharmaceutical, transport, engineering, chemical, power generation, healthcare, cosmetics & toiletries, broadcasting & telecasting, lodging, communications, cables & electrical goods, and paper & board.
The SECP’s integration with the Federal Board of Revenue (FBR) and provincial departments has streamlined the registration process. A total of 2,281 companies used the SECP eService for registration with FBR, while 61 companies secured registration with the Employees Old Age Benefit Institute (EOBI). Additionally, 27 companies obtained registration with PESSI/SESSI, and 34 companies completed the registration process with the excise and taxation departments.
Foreign investment played a notable role in this surge, with 75 new companies attracting investments from various countries. China led the pack with 40 companies, followed by Afghanistan (5), the UK (4), Germany and the UAE (3 each), and the Netherlands, Norway, and the US (2 each). A total of 14 companies attracted investments from other countries including Algeria, Australia, Denmark, El Salvador, France, Indonesia, South Korea, Libya, Malaysia, Nigeria, Spain, Syria, Thailand, and Turkey.
According to the SECP, this influx of new companies and foreign investments highlights the resilience and growth potential of Pakistan’s business landscape, reflecting positively on the country’s economic trajectory.
