PAKISTAN: New Companies Regulatory Framework Released

The Securities and Exchange Commission of Pakistan (SCEP) has issued new draft regulations for companies - including foreign firms - operating in Pakistan. According to the Companies Regulations, 2022 draft, released on 20 July 2022, foreign firms in Pakistan, except non-profits, must provide additional documentation, including a profile of the company; information on directors; incorporation certificate; and authorisation to acquire shares. Foreign companies must also provide their charter, statute, memorandum and articles of association or instrument defining the firm’s constitution. A board resolution appointing a local principal officer is also mandated; and that principal officer’s official consent to process documents must be provided. 

Details for changes to company name and other information are also given in the amendments. Alterations to company details, such as charter, statute, memorandum and articles of association; registered office address; and the parent or local firm’s principal officers, must be submitted within 30 days of change. The SECP also requires foreign firms with members holding more than 25% of shares, voting rights, or controlling interest on behalf of others, to maintain updated particulars for ultimate beneficial owners.