ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has granted exemption from requirement of National Tax Number (NTN) under the Companies Ordinance, 2016 for a period of two year.
According to Circular No. 35/2016 issued by the commission stated that the Companies Ordinance, 2016 had been promulgated on November 11. 2016. The provision of Section 153 (h) of the Ordinance provides that a person shall not be eligible for appointment as director of a company, if he does not hold NTN as per the provision of Income Tax Ordinance, 2001.
“It has been observed that the promoters desirous of forming small size companies (SSC) find difficulties as NTN may not be available at the time of formation of company,” the SECP said and added that keeping in view and in order to promote corporatization, a general exemption for a period of two years had been granted to all small size companies as defined under the Third Schedule attached to the Ordinance, including Agriculture Promotion Companies formed in terms of Section 457 of the ordinance from the requirement of NTN as applicable in terms of Section 153(h) of the ordinance.
