SECP Marks 39,704 Companies Inactive Over Four Years of Non-Filing
Inactive Companies: SECP marks 39,704 firms inactive over four years of missed filings.
The Securities and Exchange Commission of Pakistan (SECP) has marked 39,704 companies as “Inactive by Registrar” after they failed to submit annual returns and/or financial statements for four consecutive years.
The SECP said the measure would improve the reliability of Pakistan’s corporate register. It would also help prevent dormant companies from being misused.
According to a press release issued on Saturday, the inactive status will appear in the SECP’s system. Banks and other stakeholders will also be able to view it.
These companies cannot open new bank accounts until they submit their overdue documents and regain active status. They will also face restrictions on accessing financial services and registering changes in their directors.
Lahore and Islamabad Account for Most Inactive Companies
The SECP’s figures show that Lahore and Islamabad account for the largest numbers of inactive companies.
The city-wise breakdown is as follows:
- Lahore: 13,927
- Islamabad: 13,859
- Karachi: 4,868
- Peshawar: 2,031
- Multan: 1,861
- Faisalabad: 1,384
- Gilgit: 1,102
- Quetta: 436
- Sukkur: 236
Companies Act Requires Regular Filings
The Companies Act, 2017 requires companies to file annual returns and financial statements, where applicable.
These documents keep public records of company ownership and management up to date. The SECP said prolonged non-filing could weaken the corporate register.
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It also warned that outdated corporate information could undermine efforts to prevent money laundering and terrorism financing.
Pakistan’s Corporate Register Continues to Expand
Despite the action against non-filing companies, Pakistan’s corporate sector continues to grow.
The country had 317,002 registered companies at the end of September 2026. The SECP registered 43,559 new companies during the previous financial year, marking a 24% increase from the year before.
The regulator has also digitised company name reservations and incorporation. It said 99.9% of new companies now complete registration online.
SECP Offers Companies a Path Back to Compliance
SECP Chairman Dr Kabir Ahmed Sidhu said a reliable corporate register was essential for trust in the business sector.
“A clean and credible registry is the bedrock of trust in the corporate sector,” he said.
He added that the SECP aimed to protect the financial system while giving companies a clear opportunity to meet their legal obligations and regain active status.
Companies marked inactive can return to active status by submitting their overdue documents to the regulator.
