SECP sees sharp rise in new company registrations

May 18, 2026 (MLN): The Securities and Exchange Commission of Pakistan recorded strong growth in company incorporations, foreign investment, and compliance filings during February-April 2026, showing the impact of reforms introduced under its new management.

According to the regulator, 10,511 new companies were registered during the three-month period, marking a 21% increase compared to 8,693 incorporations recorded in the corresponding period last year.

April alone witnessed incorporation of 4,082 companies, the highest monthly figure ever achieved by the commission.

The SECP said its reform agenda remained focused on accelerating disposal of incorporation and licensing applications, enhancing regulatory guidance for businesses, and strengthening institutional capacity through workforce expansion.

Foreign participation in Pakistan’s corporate sector also showed notable improvement during the period. Investors from more than 22 countries registered companies in Pakistan, while around 220 firms were incorporated with foreign shareholding.

These companies carried cumulative paid-up capital of Rs882 million, significantly higher than Rs277 million recorded in the same period last year, reflecting a sharp increase of around 218%.

The regulator noted that foreign investment remained concentrated in trading, services, information technology, construction, and mining sectors, with Chinese investors continuing to rank among the leading foreign participants in newly registered companies.

Meanwhile, compliance filings surged amid stricter enforcement and awareness initiatives launched by the SECP.

The corporate registry received 61,960 statutory returns during February-April 2026, compared to 38,326 returns filed in the corresponding period last year, showing growth of 61%.

The commission said it had launched a comprehensive compliance drive to facilitate companies in filing statutory returns, particularly focusing on Ultimate Beneficial Ownership (UBO) compliance requirements.

In a move aimed at promoting digitization and transparency, the SECP issued a notification for conversion of physical shares into book-entry form on transaction basis.

The regulator also signed agreements with Askari Bank and NayaPay to facilitate faster bank account opening for newly incorporated companies.

As part of efforts to improve access to corporate services, the SECP plans to establish Business Facilitation Centres in Islamabad, Karachi, Lahore, Sialkot, and Faisalabad.

Going forward, the regulator said it would continue advancing automation initiatives, including AI-enabled name reservation, automated Form-A registration, digital compliance monitoring, and further ease-of-doing-business reforms aimed at modernizing Pakistan’s corporate sector.

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