Equity, Shareholding, and Corporate Compliance Under SECP Laws
Equity is one of the most important concepts in corporate law and finance because it represents ownership in a company. In Pakistan, equity and corporate shareholding matters are primarily governed by the Companies Act, 2017 and the regulations issued by the Securities and Exchange Commission of Pakistan (SECP). The Companies Act, 2017 replaced the Companies...
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Corporate and Regulatory Structure of Mutual Funds under Pakistani Law
A mutual fund is a collective investment scheme through which money from different investors is pooled together and invested in diversified financial assets such as shares, bonds, Sukuk, and money market instruments. In Pakistan, mutual funds are regulated under the framework of the Companies Act, 2017 and the rules and regulations issued by the Securities...
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Winding Up of Companies under the Companies Act, 2017 and SECP Regulations
The winding up of a company is a legal process through which the existence of a company is brought to an end. In Pakistan, the winding up procedure is mainly governed by the Companies Act, 2017 and the regulations issued by the Securities and Exchange Commission of Pakistan (SECP). The purpose of winding up is...
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Dividends Under the Companies Act 2017 and Related Regulations
Dividends play a vital role in corporate finance and shareholder relations, as they represent the distribution of a company’s profits among its shareholders. In Pakistan, the legal framework governing dividends is primarily regulated under the Companies Act 2017, administered by the Securities and Exchange Commission of Pakistan (SECP), along with the Companies (Distribution of Dividends)...
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Listed and Unlisted Companies Under the Companies Act 2017
In the modern business world, companies are generally categorized into two major types: listed companies and unlisted companies. Both forms of companies play a vital role in the economic development of a country. The distinction between them mainly depends on whether the company’s shares are traded on a stock exchange. Understanding their purposes, benefits, and...
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Holding Company under the Companies Act, 2017: Legal Framework, Benefits, Registration Requirements, and Regulatory Structure
A holding company is an important corporate structure recognized under the Companies Act, 2017 of Pakistan. It is commonly used by business groups, investors, and large organizations to control and manage multiple companies under a single corporate umbrella. According to Section 2(37) of the Companies Act, 2017, a holding company is a company of which...
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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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