Company Registration In SECP

A company is a legal entity formed by one or more individuals for business activities and registered under the Companies Act, 2017. It’s a separate legal entity, distinct from its owners, allowing it to own property, enter contracts, and be sued in its own name. Companies in Pakistan can be categorized into different types, including public, private, and single-member companies, each with specific requirements and regulations.


Types of Companies:

Following are the types of legal entities which are incorporated through SECP.

1. Single Member Company.

2. Private Limited Company.

3. Public Limited Company.

4. Limited Liability Partnership (LLP)

1. Single Member Company:

According to Companies Act 2017, a company whose registered shareholders are limited to only one member or a company who has only one member is a single member company.

2. Private Limited Company:

According to companies Act 2017, a company whose registered shareholders are limited to minimum two or more members, but less than 50 members or a company who has two or more members but less than 50 members.

3. Public Limited Company:

A Company which can raise funds through public is public limited company. A business must have at least 3 members and 3 directors to register as public limited company. There is no limit of maximum members. A public limited company is further classified into two types:

1. Listed

2. Unlisted

1. Public Listed Company:

This type of company’s stocks are listed on Pakistan Stock Exchange (PSE)

2. Public Unlisted Company:

This type of company’s stocks are not listed on PSE but can raise funds through private equity offering.