Digitalization results in 186pc growth in incorporation of new companies: SECP

ISLAMABAD: Process Simplification, facilitation to public and digitalization of incorporation processes has led to extraordinary growth of 186% in incorporation of new companies in April 2021.

The SECP, in April has registered a total 2,185 new companies, 186% higher as compared to the same month last year, raising the total number of registered companies to 141,805, said a press release issued here.

In April, around 99% companies were registered online, 29% of applicants completed the incorporation process the same day while 220 foreign users were also registered from overseas.

Aamir Khan, the Chairman SECP attributed the trend of growth to digitalization and automation, introduction of simplified combined process for name reservation and incorporation, very low level of fees, and assistance provided for incorporation by the newly established Business Centre.

The April incorporation included 67% private limited companies, 29 % single member companies and the remaining 4% were public unlisted companies, not for profit associations, trade organizations, foreign companies and limited liability partnerships (LLPs).

The IT sector, for the first time, took lead with the registration of 194 new companies in a month. The IT sector was followed by the trading sector with registration of 180 new companies, construction with 117, import & export with 115, and consultancy services with 110.

Foreign investment has been reported in 47 new companies. These companies have foreign investors from USA, China, Saudi Arabia, Germany, UAE, Greece, Turkey, Norway, Canada, Netherlands, Syria, UK, Hong Kong and Australia.

The highest numbers of companies, i.e. 736 were registered in Islamabad, followed by 667, 378 and 151 companies registered in Lahore, Karachi and Peshawar, respectively. The CROs in Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 131, 48, 48, 23 and 3 companies respectively.