The Securities and Exchange Commission of Pakistan (SECP) struck off over 3,000 inactive companies from its books during the period of December 2018 to December 2021 to rationalize the working of listed companies.
While answering a query raised by the Ministry of Finance, the SECP stated the number of incorporations increased considerably in the last three years.
“There were 95,621 registered companies in Pakistan by December 2018, which reached 158,537 at the end of December 2021, indicating a growth of 67 percent,” the SECP regulator said.
“This is the first time the SECP removed such a significant number of inactive companies from its register,” the commission added.
Moreover, the number of registered companies is increasing following the ease of executing the business introduced by the SECP. This leads to providing flexibility to the regulator to eliminate the inactive companies from its books, the commission continued.
The removal of 3,000 companies from the data of the SECP would affect the overall numbers of the business registration data, however, these inoperative companies were no more required to be part of the SECP’s database of operative companies.
While a number of inactive companies, which demanded de-registration or delisting, have been assisted after the completion of established rules and regulations.
The SECP added the pro-real estate policies of the government gave motivation for newer businesses to start and expand. The policies stimulated the ease of doing business and investor confidence also demonstrated benefits for the corporate industry, it said.
Besides, the SECP has recorded 16,451 new companies in 2019, 20,349 companies in 2020 while 26,116 companies were registered in 2021, increasing the total number from 95, 621 in December 2018 to 158, 537 on December 31, 2021, representing almost half of total incorporated companies in Pakistan have been listed during the last three years.
Furthermore, the growth trend is assigned to digitalization and automation, initiation of streamlined combined process for name registration and incorporation, very low level of fees and support provided for incorporation by the newly recognized Business Centre.
This enhanced attention on digitization and facilitation to customers resulted in tangible outcomes in terms of constantly improving the number of businesses options to get registered in Pakistan.