Corporate Consultancy
Corporate consultancy services play a crucial role in guiding businesses through the complex regulatory environment in Pakistan. The Securities and Exchange Commission of Pakistan (SECP) serves as the regulatory authority overseeing corporate governance, compliance, and financial reporting standards in the country. This article explores the significance of corporate consultancy in Pakistan and the regulatory framework established by the SECP.
Incorporation and Registration: Corporate consultants assist entrepreneurs and businesses in the process of incorporating companies, obtaining necessary licenses, and registering with relevant regulatory authorities, including the SECP.
Compliance and Governance: Consultants guide corporate governance
practices, ensuring adherence to regulatory frameworks, such as the
Companies Act, 2017, and SECP regulations. They help businesses establish
effective internal controls, risk management frameworks, and board structures.
Financial Advisory: Corporate consultants offer financial advisory services,
including financial planning, budgeting, and capital structuring. They assist
businesses in raising capital, preparing financial statements, and complying
with accounting standards prescribed by the SECP.
Types Of Companies
Single Member Company (SMC- Private Limited)
This is a variant of the private limited company where only one
member/shareholder is required. The liability of the shareholder is
limited to the amount unpaid on their shares.
Private Limited Company
- This is the most common type of company in Pakistan. It can have
2 to 50 members/shareholders. - The liability of shareholders is limited to the amount unpaid on
their shares. - It cannot offer its shares to the public.
Public Limited Company Listed or Unlisted
Foreign Company
A foreign company is incorporated outside Pakistan but establishes
a place of business within Pakistan. Such companies are required to register with the SECP.
Non-Profit Organization (NPO):
These are organizations established for charitable, religious, cultural,
educational, social, or similar purposes. They operate without the intention of making a profit for their members.
Modaraba Company:
A modaraba company is formed to conduct modaraba business,
which involves the management of funds on a profit-sharing basis.
Association Not for Profit under Section 42:
These are formed to promote commerce, art, science, religion, charity, or any other useful object.
They are registered under Section 42 of the Companies Act, 2017.
Partnership (Registered or Unregistered):
Partnerships can be registered or unregistered and are governed by
the Partnership Act, of 1932.
In a registered partnership, the firm is registered with the Registrar
of Firms under the Act.
Limited Liability Partnership (LLP):
Introduced relatively recently in Pakistan, an LLP combines features of
partnerships and corporation) It provides limited liability to its partners while allowing flexibility in management like a partnership.
These are some of the common types of companies that can be registered with the SECP in Pakistan, each with its own set of regulations and requirements.