All small-size companies: SECP announces NTN exemption for two years

The Securities and Exchange Commission of Pakistan (SECP) has announced general exemption-- for a period of two years-- to all small-size companies, including new Agriculture Promotion Companies, from the requirement of National Tax Number (NTN) at the time of formation of a company.
In this regard, the SECP has issued a circular (number 35 of 2016) after the promulgation of the Companies Ordinance, 2016 regarding exemption from NTN requirement under the Companies Ordinance, 2016.
The SECP said that the Companies Ordinance, 2016 ("the Ordinance")was promulgated on November 11, 2016.
The provisions of section 153 (h) of the Ordinance provides that a person shall not be eligible for appointment as a director of a company, if he does not hold a National Tax Number as per the provisions of the Income Tax Ordinance, 2001.
It has been observed that the promotors desirous of forming Small-Size Companies (SSC) face difficulties as National Tax Number may not be available at the time of formation of a company.
Keeping this in view and in order to promote corporatization, the Commission has decided to grant a general exemption for a period of two years 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, SECP added.