One of the most critical aspects of organizing your enterprise’s prison identity and credibility is registering an enterprise call with the Securities and Exchange Commission of Pakistan (SECP). This guide on “How to Register a Business name in the SECP” helps you avoid conflicting names or every other prison trouble.
Understanding SECP
What is SECP?
The Securities and Exchange Commission of Pakistan (SECP) is a regulatory frame that offers corporate entities’ status quo and supervision. Launched in 1997, it controls industries such as coverage enterprises, NBFCs, capital markets, etc. Its most crucial venture is to protect buyers, preserve market integrity, and sell entrepreneurship.
Role Played by SECP in Business Registration
SECP plays a vital role during the registration process, which ensures businesses’ conformity to legal requirements in Pakistan. It advises choosing a business name, the required registration documentation, and the processes involved. Consequently, registering your business using SECP makes you legally recognized and operating within Pakistani laws.
Forms of Business Structures in Pakistan
Sole Proprietorship
A sole proprietorship is a situation in which one person owns and operates a business. It is easy to create but does not have the same level of protection as corporations.
Partnership
A partnership involves several individuals who own part of an enterprise together. Unlike the single ownership type, it requires a partnership agreement where there are benefits from pooled resources for enhanced support.
Limited Liability Company (LLC)
An LLC is a commonly used business structure because its owners are protected against personal liabilities or responsibilities for the company’s debts, such as tax obligations.
Public Limited Company
On the other hand, a Public Limited Company has more regulations over its affairs. This entity must meet more rules than private limited liability companies to raise funds by selling shares publicly.
How to Register a Business name in the SECP
- Open an SECP Account: Create an account on the e-Services portal the SECP provides. The portal will help you manage the registration process.
- Name Reservation: Upon logging in, complete the Name Reservation Form. This helps to reserve the desired business name and prevent its usage by any other entity. A small charge is required for this service.
- Submit Incorporation Documents: Once your name is reserved, you must submit the incorporation documents. These include a memorandum of association, copies of owners’ NICs, and other necessary papers.
- Pay Registration Fee: The registration cost varies depending on the type of business. Customers can make payments directly on the SECP portal.
- Confirmation: After submitting all documents and fee payments, SECP will look into your application. If everything is in order, you will be given a certificate of incorporation, thus legally making it your registered company’s name.
