Conversion of steel sector AOPs into companies: SECP announces facilitation measures

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has announced special facilitation measures to support the conversion of Associations of Persons (AOPs) in the steel sector into companies.

On the directions of Minister of State for Finance Bilal Azhar Kayani, SECP Chairman Dr Kabir Ahmed Sidhu has established a dedicated facilitation desk to assist steel sector businesses and ensure smooth and timely processing of their conversion and incorporation applications.

Through the Finance Act, 2026, the federal government has introduced amendments in the Second Schedule of the Income Tax Ordinance, 2001, making incorporation as a company a requirement for steel sector businesses to avail certain tax incentives.

As a result, steel mills operating as unincorporated entities, including AOPs, will face a higher tax incidence compared to SECP-registered companies, which will benefit from the preferential tax treatment provided under the revised framework.

Following these amendments, the Pakistan Association of Large Steel Producers (PALSP) approached SECP seeking guidance and facilitation for the conversion of steel sector AOPs into companies.

Company incorporation with SECP is a fully digital, simple and hassle-free process. It involves four easy steps: user registration, name reservation, submission of digitally signed incorporation application, and payment of the prescribed fee. Subject to complete documentation, a company can be incorporated within four hours.

The SECP incorporates over 3,500 companies on average every month, reflecting the efficiency of its digital corporate registry. For assistance, stakeholders may contact Saila Jamshaid, Additional Director/Incharge Business Centre, at 051-9195405 or [email protected].

To further facilitate the steel sector, SECP, in coordination with the Federal Board of Revenue (FBR), will conduct an awareness webinar on Wednesday, July 8, 2026, to guide businesses regarding the conversion process.

Copyright Business Recorder, 2026