ISLAMABAD): During the fiscal year 2020-21, 25,533 new companies were registered showing a growth of 51 percent, said a Security and Exchange Commission of Pakistan (SECP) Annual Report 2021.
According to the annual report, the total number of registered companies has reached to 145,913.
The trend, witnessed in formation of companies, was that approximately 68 percent companies were registered as private limited companies, 29 percent were registered as single-member companies, while 3 percent were registered as public unlisted, association’s not-for-profit, trade organizations, foreign companies and limited liability partnership, the report said.
Furthermore, 99 percent companies were registered online and around 33 percent of the companies were registered in same day.
The report said that in the financial year 2020-21, the construction and real estate sector took the lead with the incorporation of 4,394, trading with 4,062, IT with 2,835, services with 2,264, corporate agricultural farming with 80, food and beverages with 1,070, e-commerce with 949, education with 664, textile with 333, pharmaceutical with 566, tourism with 498 each, fuel and energy with 165, engineering with 585, marketing and advertisement with 565, transport with 254, healthcare with 196, mining and quarrying with 294, chemical with 327, cosmetics and toiletries with 239, auto and allied with 318, communication with 176, broadcasting and telecasting with 149, cables and electric goods with 244, power generation with 221, steel and allied with 151, paper and board with 99, and 3,835 companies were registered in other sectors.
Foreign investment was 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, the 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, the UAE, the UK, the US, Uzbekistan and Yemen, report said.
Moreover, 21 foreign companies from China, Germany, Hong Kong, Italy, Japan, Korea (South), Malta, Saudi Arabia, Spain, Turkey, UAE the UK and the US have established places of business in Pakistan during the last fiscal year.
During the financial year 2020-21, SECP incorporated 63 not-for-profit associations under section 42 of the Companies Act, 2017, with objects of arts, sports, social services and charity etc.
Besides, licenses of 29 not-for-profit associations have been renewed, while licenses of 3 not for-profit associations were revoked due to non-compliance.
As of June 30, 2021, the number of companies licensed under section 42 of Companies Act culminated 1,184.
The contemporary global market, with its inherent interconnectedness, evidences increasing Merger and Acquisition activity, given its apparent widespread benefits and gains for stakeholders – specifically for shareholders of both the acquiring and target companies. Numerous mergers are driven by the expected elimination of avoidable operational costs subsequent to consolidation of activities, while others tend to target future growth prospects through enhanced market share and global expansionary measures.
Presently, schemes of arrangement of small-sized companies and public sector companies, directly or indirectly wholly owned by Federal Government, are approved by the SECP.