STEP BY STEP PROCESS OF STARTUP COMPANY INCORPORATION

We have suggested Startups to incorporate as multi-members Limited Liability Private Company, which is also known as a Private Limited company.

This article will explain how startups can register their Private Limited Company Online with Securities and Exchange Commission of Pakistan (SECP).

Step 1. User Registration

At first step, founder of the startup needs Personal User Registration on SECP’s e-services Portal by providing the required personal information including Personal Cell No. and an Email on which user activation codes will be communicated.

On successful User Registration, founder will receive a four digits Personal Identification Number (PIN) and this PIN will be used to digitally sign all future documents, forms and other correspondence with SECP electronically.

If the Startup has other co-founders then all such co-founders shall also go through the same User Registration process, and if there is only one founder then at least one more person to be shareholder, member and director, is needed to register a multi-members Private Limited Company.

Step 2. Application for Name Reservation

After User Registration of all co-founders or members, Founder or any other member will logon SECP’s e-services Portal and apply for Company Name Reservation.

In name reservation application, applicant has to propose three different company names in order of priority for reservation and also need to mention their meaning and relevance with business activities. There are certain prohibited names which cannot be included in the proposed names, the criteria specified in Section 10 of the Companies Act, 2017 and Regulation 4 of Companies (Incorporation) Regulations, 2017 should be ensured.

There are three payment methods currently available on SECP e-services portal namely:

  1. Bank Challan (designated Branches of Banks only)
  2. ADC Payment Method
  3. Credit Card Payment

Select ADC payment method to pay electronically through mobile Banking App. or Wallet. You can also use other available payment methods as per your convenience. Select category of your proposed company, mention Principal Line of business and address for correspondence. Submit the application and pay the application fee. On the basis of this address, application will be assigned to regional Companies Registration Office (CRO).

The registrar of concerned CRO, if satisfied with any of your proposed names, will reserve the name for sixty days and issue a Name Reservation Letter to you, letter will be communicated via email as well as through courier on given address.

Step 3. Company Incorporation Application

Application for company incorporation can be filed along with Company Name Reservation Application in a combined process or through a separate application after getting Name Reservation Letter from SECP.

Following information is also required while filing out application for company incorporation:

  1. Company’s Registered Address, Phone and Email
  2. Total Number of Shares
  3. Per Share Value
  4. Number of shares assigned to each co-founder or member
  5. Chief Executive Officer
  6. Directors (at least two)

Application is filed with scanned copies of these documents:

  1. Memorandum of Association and Articles of Association (Auto-generated in case of combined process)
  2. Valid CNICs copies of all co-founders or members
  3. Company Name Reservation Letter (in case of separate application)
  4. NOC or License from relevant regulatory authority in case of specialized business

Complete application shall be signed electronically by every co-founder or member before final submission to SECP. On submission, application fee shall be due, pay the fee through any of above mentioned payment channel.

 The registrar shall examine the documents submitted for registration and if satisfied that the same are complete in all respects and all other requirements have been complied with, shall register the memorandum and other documents filed.

In case any discrepancy or deficiency is observed by the registrar in the documents filed, the same shall be communicated to the applicant on email for resolution. After removal of discrepancy or deficiency, Registrar will register your company and a scanned copy of Incorporation Certificate will be sent through email within a day and you can also receive Incorporation Certificate from your regional CRO normally after three working days.

During the incorporation application, FBR process company NTN with data collected on third party form included in application and send FBR’s User Password and PIN on Chief Executive Officer’s email address and cell phone number, you can download company’s NTN Certificate by logging on FBR iris Portal.