SECP fast tracks steel sector corporatization

July 06, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has introduced special facilitation measures to accelerate the conversion of steel sector Associations of Persons (AOPs) into registered companies following changes introduced through the Finance Act, 2026.

On the directives of the Minister of State for Finance, Mr. Bilal Azhar Kayani, SECP Chairman Dr. Kabir Ahmed Sidhu has established a dedicated facilitation desk to support steel businesses and ensure the timely processing of conversion and incorporation applications.

Under amendments made to the Second Schedule of the Income Tax Ordinance, 2001 through the Finance Act, 2026, steel sector businesses must incorporate as companies to qualify for certain tax incentives.

Consequently, unincorporated entities, including AOPs, will face a higher tax burden than SECP-registered companies, which will benefit from the revised preferential tax regime.

The initiative follows a request from the Pakistan Association of Large Steel Producers (PALSP), which sought SECP's guidance to facilitate the conversion of steel sector AOPs into companies.

SECP said company incorporation is a fully digital process comprising four steps: user registration, name reservation, submission of a digitally signed incorporation application, and payment of the prescribed fee.

Subject to complete documentation, incorporation can be completed within four hours.

The regulator currently incorporates more than 3,500 companies each month through its digital corporate registry.

To further support the transition, SECP, in collaboration with the Federal Board of Revenue (FBR), will hold an awareness webinar on Wednesday, July 8, 2026, to guide steel businesses on the conversion process.