Single Member Company Under the Companies Act, 2017
The concept of a Single Member Company (SMC) was introduced to encourage entrepreneurship and provide legal protection to individuals who wish to run a business independently. Under the Companies Act, 2017 of Pakistan, a Single Member Company is a private company that is owned by only one person. This structure allows an individual entrepreneur to...
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Authorised Capital vs Paid-Up Capital Under Pakistani Company Law 2017
When establishing a company in Pakistan, one of the most important legal and financial considerations is the company’s capital structure. Two commonly used terms in corporate law are authorised capital and paid-up capital. Although these terms are related, they have completely different legal meanings and practical implications. Every entrepreneur, investor, accountant, and company director should...
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How to Register a Public Limited Company in Pakistan
A Public Limited Company in Pakistan is a business organization that is formed under the laws of the country and registered with the Securities and Exchange Commission of Pakistan (SECP). It is a company whose shares can be offered to the general public for investment. The ownership of the company is divided into shares, and...
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What is an LLP? Key Benefits and How to Register an LLP with SECP
An LLP or Limited Liability Partnership, is a business structure that combines the flexibility of a traditional partnership with the benefit of limited liability for its partners. It is a separate legal entity from its partners, meaning the LLP can own property, enter contracts and be sued in its own name. Each partner’s liability is...
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Private Limited Company in Pakistan: Meaning, Benefits and Registration Process
A private limited company is a legally recognized business structure that exists as a separate legal entity from its owners. This means the company can hold property, enter into contracts, open bank accounts and sue or be sued in its own name. It is formed by registering with the corporate regulatory authority of the country,...
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Understanding Types of Shares Under the Companies Act 2017 and How They Work
Shares are the foundation of corporate ownership and play a vital role in the financial structure of every company. Under the Companies Act 2017, shares represent units of ownership issued by a company to its shareholders in exchange for capital investment. These shares not only help businesses raise funds for growth and expansion but also...
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