Companies facing default: SECP launches regularisation scheme

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has launched a regularisation scheme (the Companies Regularisation Scheme) for companies grappling with defaults on annual filings.

The regularisation window will remain open from June 15, 2024, to September 15, 2024, providing an opportunity for companies to file their overdue annual returns, documents and accounts by simply paying regular filing fees. There will be no additional charges, penalties, or late fees for filing overdue returns during the scheme period.

The Companies Regularisation Scheme applies to a wide range of companies, including non-listed public companies, private companies, SMCs, foreign corporations, and non-profit organisations established under Section 42 of the Companies Act. However, this regularisation scheme is not applicable to listed companies.

The scheme covers defaults committed up to October 28, 2023. To make the process simple and easy, the companies are required to make physical filings so that returns for multiple years can be filed simultaneously.

SECP’s Company Regularisation Scheme aims to promote compliance and ease regulatory burden by allowing companies to regularize filing defaults without heavy penalties. For more information about the Companies Regularization Scheme, including eligibility criteria and filing procedures, please visit SECP website www.secp.gov.pk.

Copyright Business Recorder, 2024