SECP enhances clarity with new name reservation rules

February 04, 2025 (MLN): In order to streamline the name reservation process, the Securities and Exchange Commission of Pakistan (SECP) has introduced new name reservation Guidelines, replacing the existing FAQs to enhance clarity and efficiency.

The Guidelines provide guidance on the regulatory and legal framework governing company registration, including the name reservation process.

They outline the procedure for applying for a company name, name reservation criteria, and tips for choosing appropriate and successful names.

It also includes the mechanism for filing of appeal against rejection of names.

These guidelines are placed on the website of the Commission.

In the guidelines, criteria for resembling name has been reviewed to facilitate the investors and business community to ease out the difficulties.

Further, clarity has been provided for use of, numeric values, specific words for licensed entities/modarabas.

The criteria for the word Pak/Pakistan used as prefix or suffix has been relaxed, according to the press release.

However, proof of Government would be required for use of word ‘of Pakistan’ as it gives the impression of public sector entities.

In order to reduce processing time, minimize human intervention, and enhance accuracy, SECP is implementing an AI-powered Name Reservation System to eliminate subjectivity in evaluating company name applications.

Automated approvals and AI-driven decision-making will expedite the name reservation process while promoting corporatization, fostering ease of doing business, and strengthening Pakistan’s overall business environment.

The Securities and Exchange Commission of Pakistan (SECP), in recent years, has undertaken significant reforms to streamline the company incorporation process, making it more efficient, accessible, and cost-effective.

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