ISLAMABAD: During the financial year 2020-21, 25 533 new companies were registered showing growth of 51 percent said the Securities and Exchange Commission of Pakistan Annual Report (SECP) 2021.
According to the annual report, total amount of registered companies reached 145,913.
A trend that has been proven in formation of companies, there were approximately 68 percent companies were registered as private limited liability companies, 29 percent were registered as companies with one member, and 3 percent were registered as public unregistered, association not-for-benefit, trade organizations, foreign companies and limited liability partnerships, the report said.
In addition, 99 percent companies were registered online and about 33 percent of companies have been registered in same day.
The report states that in in financial year 2020-21, construction and real real estate sector took in lead with inclusion of 4394, trading with 4062 IT with 2835, services with 2264 people, corporate agriculture with 80, food and drink with 1070, e-commerce with 949, education with 664, textiles with 333, pharmaceuticals with 566, tourism with 498 units, fuel and energy with 165 engineering with 585, marketing and advertising with 565, transport with 254, health care with 196, mining with 294, chemical with 327, cosmetics and toiletries with 239, auto and ally with 318, communication with 176, broadcasting and television broadcasting with 149, cables and electrical goods with 244, power generation with 221, steel and related with 151, paper and board with registered 99 and 3835 companies in other sectors.
Foreign investment reported in 529 new companies. These companies have foreign investors from Afghanistan, Australia, Austria, Bahrain, Bermuda, Canada, Cayman Islands, China, Czech Republic, Denmark, Egypt, France, Germany, Hong Kong, Iran, Iraq, Ireland, Italy, Japan, Jordan, Kenya . , Korea (South), Kuwait, Lebanon, Malaysia, Mauritius, Netherlands, New Zealand, Nigeria, Norway, Oman, Palestine, Philippines, Poland, Qatar, Russia, Saudi Arabia, Serbia, Seychelles, Singapore South Africa, Spain, Sri Lanka , Sweden, Syria, Taiwan, Tajikistan, Thailand, Turkey, UAE, UK, US, Uzbekistan and Yemen, the report said.
In addition, 21 foreign companies from China, Germany, Hong Kong, Italy, Japan, Korea (South), Malta, Saudi Arabia, Spain, Turkey, UAE, UK and USA have opened of business in Pakistan during last fiscal year.
During financial year 2020-21, SECP included 63 non-for- commercial associations in accordance with Article 42 of Companies Law, 2017, with objects of art, sports, social services and charity, etc.
In addition, licenses of 29 non-for- commercial associations have been updated and licenses of 3 not for- commercial associations were liquidated due to non-compliance.
As of June 30, 2021, number of companies licensed under section 42 of The Companies Act culminated in 1184.
Modern global market, with its inherent interconnectedness is indicative of an increase in M&A activity, given its apparent widespread advantages and benefits. for interested parties, in particular for shareholders of both acquiring and target companies. Multiple mergers driven by pending elimination of operating expenses that can be avoided after consolidation of activities, while others tend to focus on future growth perspectives through expansion market share as well as global expansionist measures.
Schemas are currently of arrangement of small large companies and public industry companies, directly or indirectly wholly owned by the federal government, approved by the SECP.
