Every week, we have a client whose SECP application got rejected due to a simple reason that had nothing to do with their business plan, idea, or project. An expired CNIC, name spelled differently on two documents, or a name that does not follow SECP guidelines can add weeks to your processing time. Below you will find all the documents SECP will ask for during company registration.
Core Documents Required For Any Company
CNIC or Passport Copies
Each of the company’s directors, shareholders, and the chief executive must provide a copy of a valid ID. For Pakistani nationals, this means CNIC, and for foreign – a passport. The most common reason for rejection we encounter here is an expired CNIC, which the applicant was not aware of until SECP rejected their application.
Free tool: Search the SECP company register with our free SECP Company Search.
Proposed Company Name (with Alternatives)
SECP has a list of restricted words that require special approval, and a name that is too similar to an existing company’s name. It is a good idea to prepare 2-3 alternatives in case one is rejected. One of our clients’ applications was delayed by more than a week because they only had one name prepared, which SECP rejected.
Contact Information, Registered Office Address
A valid email address, a phone number, and a registered office address in Pakistan. The address where the SECP will be sending all of their correspondence is critical – make sure it is not a dummy address or a PO Box.
Director and Shareholder Particulars
Particulars of each of the directors and shareholders – name (exactly as it appears on the CNIC/passport), address, and % of shares. One of the most common reasons for rejection is inconsistency between the name on the CNIC and the application form.
Documents Depending on Your Company’s Structure
Single Member Companies (SMC)
If you are registering an SMC (a company with only one director/shareholder), you will also need to provide a nominee and their acceptance of the nomination.
Foreign Shareholders or Directors
In addition to a copy of the passport, foreign shareholders and directors usually require additional documentation, such as a residential address proof. Another thing to note here is that applications with foreign shareholders/directors undergo additional screening, so it is a good idea to double-check the application before submitting it.
Regulated Sectors
Banking, insurance, education, and several other sectors require a NOC (No Objection Certificate) from the relevant regulatory authority before SECP will approve the registration. If you are unsure whether your business falls under the “regulated” category, double-check before submitting the application – SECP will not approve it if the required NOC is missing, and you will have to start the process over.
Common Errors Leading to Processing Delays
Among other things, the most common causes of delay are:
- An expired CNIC
- A proposed company name that does not match the name on the ID
- A contact email address that is not regularly monitored (SECP will contact the applicant via email)
- A proposed company name that violates SECP guidelines
- Incorrect shareholder information (the application is resubmitted expecting changes “later”)
None of these errors are particularly difficult to remedy – all of these delays can be avoided if the applicant double-checks the application for obvious errors before submitting it. This is basically the only thing we do for our clients – review their SECP applications for errors.
FAQ
What is SECP?
SECP stands for Securities and Exchange Commission of Pakistan, the governmental organization that issues company registrations and oversees corporate entities in Pakistan.
Where Do I Register a Company?
Registering a company takes place online in SECP’s eServices portal. Getting the actual paperwork in order is what most applicants struggle with.
Do I Need a CNIC?
Pakistani Nationals are required to provide a CNIC, while foreign nationals must submit a passport copy instead.
Can I Register a Company with a Foreign Shareholder/ Director?
Yes, both foreign shareholders and directors are allowed, but additional documentation may be required for their application (see the “foreign shareholders/directors” section below).
If you would rather leave the “checking for errors” part to someone else, feel free to use our SECP Company Registration service
Consequences of Missing or Incorrect Information
SECP’s eServices portal will notify the applicant of an application’s incompleteness at the “review and approval” stage instead of immediately rejecting it. This means that the application will be returned to the applicant with objections, requiring them to amend the application and resubmit it, prolonging the processing time by approximately 3-5 working days. The most common reason for such an objection is inconsistency between the CNIC number on the application form and the one in NADRA records or the registered address not corresponding to the utility bill address. Double-checking these details before submitting the application will reduce processing time significantly.
Foreign Director or Shareholder
If any of the directors or shareholders are foreign nationals, SECP requires additional documentation for their application, such as a passport copy (as opposed to a CNIC for Pakistani Nationals). For foreign shareholders, additional documents may need to be provided, such as attestation of documents. This is one of the common reasons why incorporation takes longer for some companies, as the documents not being in order or missing entirely results in the application being returned to the applicant.
Example Working Timeline
For a private limited company with all Pakistani directors/shareholders and all necessary documents provided on the first try, the processing time can be estimated at approximately 1-2 working days from name reservation approval and another 3-5 working days from the start of the application until the incorporation certificate is issued. This makes it somewhere around a week to ten days for a simple private limited company with no foreign directors/shareholders and all required documentation provided on the first try to be incorporated. Add a few extra days to this estimate for every round of objections and required amendments if documents are not provided in the correct order or are missing.
FAQ
Do I Need a Physical Office Address?
You will need to provide a valid Pakistani address where SECP can send all of their correspondence (i.e., an address where someone can receive physical mail). It does not need to be a large office; the address of a residential apartment will suffice as well. However, it cannot be a PO Box. It is a good idea to provide an address where the director(s) of the company can receive letters as well.
Can I Register a Company with One Person?
Yes, you can register an SMC (Single Member Company), which will have one director/shareholder instead of the usual minimum of two directors/shareholders for private limited companies.
How Long is a Reserved Company Name Valid for?
SECP will hold the reserved company name for a limited time (usually around 90 days) after it has been approved for registration. If you do not complete the company registration within this timeframe, the name will be released and become available for anyone else to register.
