SECP marks over 39,000 non-filing companies inactive

The Securities and Exchange Commission of Pakistan (SECP) has made 39,704 companies inactive by registering, following their failure to file annual returns and financial statements for four consecutive years. This action aims to maintain a more reliable corporate register and deter dormant companies from being exploited. Once marked as inactive, these companies will not be able to establish new bank accounts or engage in financial activities until they submit overdue documents and regain active status. They will also be barred from registering changes in their directors.

Lahore, Islamabad, Karachi, Peshawar, Multan, Faisalabad, Gilgit, Quetta, and Sukkur are among the cities hosting the largest number of these inactive companies. Filing annual returns and, when necessary, financial statements is mandatory under the Companies Act of 2017. This filing ensures that public information regarding companies, their ownership, and management remains current.

The SECP warns that prolonged non-filing undermines the corporate register and could obstruct efforts to combat money laundering and terrorist financing.

As of September 2026, Pakistan registered a total of 317,002 companies. During the previous fiscal year, the SECP added 43,559 new companies, marking a 24% increase compared to the prior year. Now, all company name reservations and incorporations are conducted digitally, with 99.9% of new companies registered online. Dr. Kabir Ahmed Sidhu, SECP Chairman, emphasized in a statement that a reliable and credible corporate registry is essential for cultivating trust within the corporate sector.

The SECP is safeguarding the integrity of the financial system while offering companies a clear path to regain compliance.