Corporate Law at Pakistan
Corporate Law in Pakistan refers to the body of laws, rules, and regulations that govern the formation, operation, and dissolution of corporations and other business entities in Pakistan. Here’s a concise overview:
Key Legislation in Corporate Law (Pakistan):
Companies Act, 2017
Replaced the Companies Ordinance, 1984.
Governs incorporation, regulation, responsibilities, and dissolution of companies.
Administered by the Securities and Exchange Commission of Pakistan (SECP).
Securities Act, 2015
Regulates capital markets and protects investor interests.
Ensures transparency and accountability in securities trading.
Limited Liability Partnership (LLP) Act, 2017
Allows professionals and small businesses to register LLPs, combining partnership flexibility with limited liability.
Partnership Act, 1932
Governs partnerships (non-incorporated entities).
Foreign Companies Regulations
Foreign companies can operate in Pakistan by registering with the SECP.
Subject to compliance with local corporate and tax laws.
Key Institutions:
Securities and Exchange Commission of Pakistan (SECP):
Regulates corporate entities, capital markets, insurance, and non-banking finance companies.
Federal Board of Revenue (FBR):
Handles taxation of companies and corporate tax compliance.
Types of Business Entities:
Private Limited Company
Public Limited Company (listed or unlisted)
Single Member Company
Limited Liability Partnership
Sole Proprietorship (not governed by corporate law but by general business law)
Corporate Governance Standards:
Mandatory for listed companies to follow the Code of Corporate Governance issued by SECP.
Emphasizes transparency, board independence, and audit controls.
Common Legal Compliance Requirements:
Filing annual returns and financial statements
Holding annual general meetings (AGMs)
Maintaining statutory registers
Ensuring proper tax registration and filing
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