The SECP, or Securities and Exchange Commission of Pakistan, is like a watchdog for businesses in Pakistan. Its job is to make sure companies follow the rules, are fair to investors, and keep everything transparent. Think of them as the referees of the business world, making sure everyone plays by the book.
Why SECP Fees Matter
If you’re thinking of starting a company in Pakistan, it’s crucial to know about the SECP fees. These are like the entry ticket and the ongoing cost of doing business. They cover things like registering your company, filing important documents, and even making changes down the line.
SECP’s Role in Regulating Companies
The SECP is guided by the Companies Act 2017. This law sets out the rules companies must follow. The SECP uses this law to regulate businesses, and the fees they collect help them do this effectively. The Seventh Schedule of the Act lists all the different fees and tells you how much you need to pay for each service.
In this post, we’ll take a closer look at the world of SECP fees. We’ll break down what you need to pay for registering your company, reserving a name, filing those important documents, and more. We’ll also talk about things like late fees and how to get official copies of documents. By the end, you’ll have a clear understanding of the costs involved in setting up and running a company in Pakistan, helping you plan your budget and avoid any surprises.
Getting Started: SECP User Registration
eZfile: Your Online Gateway to SECP Services
The SECP has made things easier with its online platform called eZfile. This is where you can do most of your company-related tasks without having to visit an office. Think of it like your one-stop shop for all things SECP.
User Registration Fee: A Small Price for Big Convenience
To use eZfile, you need to create an account. This is like signing up for any website. There’s a one-time fee of Rs. 200 for this, which is a small price to pay for the convenience of doing everything online.
Once you’re registered, you can access all the services eZfile offers, from registering your company to filing important documents.
SECP Name Reservation
Reserving Your Company’s Name
Before you can register your company, you need to pick a name for it and make sure no one else is using it. This is where name reservation comes in. It’s like putting a temporary hold on a name while you get everything else ready.
Fee for Name Reservation
The SECP charges Rs. 200 (plus any bank fees) to reserve a name. This fee is a one-time payment, so you only pay it once, even if you need to reserve multiple names before finding the perfect one.
Name Reservation Expiry and Reapplication
Once you reserve a name, it’s yours for a set period. This gives you time to complete the company registration process. If you don’t register your company within that time, the reservation expires, and you’ll need to reapply and pay the fee again.
But, once your company is registered with the reserved name, that name is yours to keep, unless you decide to change it later.
SECP Company Registration Fee Calculator (2024)
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Additional Services
SECP Company Registration Fees
Understanding Authorized Capital
Before we dive into the fees, let’s talk about “authorized capital.” This is basically the maximum amount of money your company is allowed to raise by selling shares. It’s like setting a limit on how much your company can grow in the beginning. The amount of authorized capital you choose affects how much you’ll pay to register your company.
Fee Tiers: How Much Will You Pay?
The SECP has different fee levels based on your company’s authorized capital.
- If your authorized capital is up to Rs. 100,000, you’ll pay Rs. 2,200 if you register online or Rs. 5,000 if you do it offline.
- For every Rs. 100,000 above that initial amount, there’s an additional fee. This means the more capital your company is authorized to raise, the higher the registration fee.
Special Case: Not-for-Profit Companies
If you’re setting up a not-for-profit company (under Section 42 of the Companies Act), the fees are different. It costs Rs. 27,500 to register and an additional Rs. 150,000 for a license.
Company Registration Fees in Pakistan
| Authorized Capital | Online Filing Fee | Offline Filing Fee |
|---|---|---|
| Up to Rs. 100,000 | Rs. 2,200 | Rs. 5,000 |
| For every Rs. 100,000 or part thereof above the first Rs. 100,000 up to Rs. 5 billion | Rs. 700 | Rs. 700 |
| For every Rs. 100,000 or part thereof above Rs. 5 billion | Rs. 1,650 | Rs. 1,650 |
| Section 42 Company (Not-for-profit) Registration Fee | Rs. 27,500 | Rs. 55,000 |
| Section 42 Company License Fee | Rs. 150,000 | Rs. 150,000 |
SECP Filing Fees
What Are Filing Fees?
Once your company is registered, you’ll need to keep the SECP updated on any changes or important events. This is done by filing various forms and documents. These could include things like your annual financial statements, changes to your company’s information, or any special resolutions you pass. Each time you file something, there’s a fee.
How Much Are the Filing Fees?
The standard fee for filing most forms or documents is Rs. 1,000 if you do it online through eZfile, or Rs. 1,500 if you submit them physically at an SECP office.
Filing Fees Table
| Document | Online Filing Fee | Offline Filing Fee |
|---|---|---|
| Any statutory form or return | Rs. 1,000 | Rs. 1,500 |
Mortgage and Charge Fees
What are Mortgages and Charges?
Sometimes, companies need to borrow money, and they might use their assets (like buildings or equipment) as collateral. This is called creating a mortgage or charge on the asset. It’s like saying, “If we can’t pay back the loan, you can take this asset.” The SECP charges fees for registering, changing, or removing these mortgages or charges.
How Much Are the Fees?
- To register, change, or satisfy (meaning pay off) a mortgage or charge within 30 days, it costs Rs. 11,000 if you do it online, or Rs. 15,000 if you do it offline.
- If you’re satisfying a charge after one year, the online fee is Rs. 16,500
Fee for Mortgage or Charge
| Type of Document | Online Filing Fee | Offline Filing Fee |
|---|---|---|
| Registration, modification, and satisfaction of Mortgage or Charge (within 30 days) | Rs. 11,000 | Rs. 15,000 |
| Filing Satisfaction of charge document within 1 year | Rs. 11,000 | Rs. 16,500 |
| Filing Satisfaction of charge document after 1 year | Rs. 16,500 | Rs. 24,750 |
SECP Late Filing Fees
What Happens if You Miss a Deadline?
It’s important to submit all your forms and returns to the SECP on time. If you’re late, there are penalties. These are called late filing fees, and they can add up quickly.
How Much Are the Late Fees?
The late fees depend on how late you are:
- If you’re up to 90 days late, you’ll pay double the normal fee.
- If you’re between 90 days and 180 days late, it’s triple the normal fee.
- Between 180 days and one year late, it’s four times the normal fee
- If you’re more than a year but less than two years late, it’s five times the normal fee.
Late Filing Fee Table
| Time of Filing | Fee (including late fee) |
|---|---|
| Within 90 days | Two times the normal fee |
| Within 180 days | Three times the normal fee |
| Within 1 year | Four times the normal fee |
| Within 2 years | Five times the normal fee |
SECP Fees for Various Applications
Beyond the Basics: Fees for Specific Applications
Apart from the regular fees we’ve discussed, there are also fees for specific things you might need to do with your company, such as changing its name, issuing more shares, or even getting approval for a director to take a loan from the company.
How Much Are These Application Fees?
- If you want to change your company’s name, it’ll cost you Rs. 2,500 if you apply online, or Rs. 5,000 if you apply offline.
- For more complex applications, like setting up an Employee Stock Option Scheme (where you give employees the option to buy company shares), the fee is Rs. 25,000.
Application Fees Table
| Application | Online Filing Fee | Offline Filing Fee |
|---|---|---|
| Approval for change of name of a company | Rs. 2,500 | Rs. 5,000 |
| Alteration in the memorandum of association | Rs. 5,000 | Rs. 10,000 |
| Conversion of the status of a company | Rs. 2,500 | Rs. 5,000 |
| Issuance of shares at a discount | Rs. 5,000 | Rs. 10,000 |
| Issuance of further share capital other than right issue | Rs. 25,000 | Rs. 50,000 |
| Approval of Employee Stock Option Scheme | Rs. 25,000 | Rs. 50,000 |
| Issuance of shares with different rights and privileges | Rs. 25,000 | Rs. 50,000 |
| Extension in the prescribed period for holding the AGM of a public company | Rs. 10,000 | Rs. 15,000 |
| Extension in the prescribed period for holding the AGM of a private company | Rs. 3,000 | Rs. 5,000 |
| Fresh election of directors | Rs. 5,000 | Rs. 10,000 |
| Approval of a loan to a director | Rs. 5,000 | Rs. 10,000 |
| Obtaining the status of an inactive company | Rs. 5,000 | Rs. 10,000 |
| Application by an inactive company for obtaining the status of an active company | Rs. 5,000 | Rs. 10,000 |
SECP Fees for Certified True Copy (CTC)
What is a Certified True Copy (CTC)?
The SECP keeps a record of all the documents your company files. Sometimes, you might need an official copy of one of these documents. This is called a Certified True Copy, or CTC. It’s like a stamp of approval from the SECP saying this is a real, accurate copy of the original document
How to Get a CTC and How Much it Costs
You can get a CTC by applying online or in person at an SECP office. The fees vary depending on which document you need.
- For a certificate of incorporation (the document that officially creates your company), it costs Rs. 100 online or Rs. 600 offline.
- For your Memorandum and Articles of Association (the documents that set out your company’s rules and purpose), the fee is Rs. 250.
CTC Fees Table
| Document | Online Application Fee | Offline Application Fee |
|---|---|---|
| Certificate of incorporation | Rs. 100 | Rs. 600 |
| Memorandum and Articles of Association of a private limited company | Rs. 250 | Rs. 1,500 |
| Memorandum and Articles of Association of other than a private limited company | Rs. 500 | Rs. 3,000 |
| Any return other than financial statements of a private company | Rs. 100 | Rs. 600 |
| Any return other than financial statements of a company other than a private company | Rs. 200 | Rs. 900 |
| Extract of any other document, financial statements, or register | Rs. 20 per page (minimum Rs. 100) | Rs. 20 per page (minimum Rs. 100) |
| System-generated company profile | Rs. 1,000 | Not available |
| System-generated register/report of outstanding charges/mortgages | Rs. 2,000 | Not available |
| System-generated detail of officers of a Company | Rs. 200 | Not available |
| System-generated detail (name, address, capital) of a company | Rs. 200 | Not available |
Wrapping Up: SECP Fees
Understanding and paying your SECP fees on time is crucial. It’s not just about following the rules; it’s about making sure your company stays in good standing and avoids any penalties.
Remember, the fees we’ve talked about can change. The SECP updates the Seventh Schedule from time to time, so it’s important to stay informed. You can always check the SECP website or talk to a professional if you’re unsure about any fees.
By staying on top of the SECP fees and understanding what you need to pay and when, you can focus on what really matters – growing your business!
Need help navigating the complexities of SECP regulations? Contact HETCO for expert guidance and support.