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1- HEALTH INSURANCE SCHEME A NECESSITY
2- INCOME TAX LAWS IN PAKISTAN
3- WHEAT CRISIS DEEPENED
4-
IMPROVEMENT IN CORPORATE SECTOR


IMPROVEMENT IN CORPORATE SECTOR

 

During the month of October 2004 a total of 202 companies were registered with the SECP

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From SHAMIM AHMAD RIZVI, 
Islamabad

Nov 29 - Dec 05, 2004
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The growing trend in company incorporation continued during the first 4 months (July-October 2004) of the current financial year as well. Over two hundred new companies are being registered every month at various registration offices set up by the Securities and Exchange Commission of Pakistan (SECP) to facilitate incorporation of new companies.

During the month of October 2004 a total of 202 companies were registered with the SECP under the Companies Ordinance, 1984 as compared to 162 companies registered during the corresponding month of the previous year reflecting an increase of about 25 percent, bringing the number of registered companies to 44,618 on October 31, 2004.

The number of new registration every month has been increasing considerably as compared to growth in last year's corresponding months. From the month of March 2004, the corporate sector has maintained new incorporations exceeding the mark of 200 companies each month, which has far surpassed the comparative registration figures of the previous year.

Highest numbers of companies registered during the month were reported from Company Registration Office (CRO) Karachi, followed by Lahore and Islamabad. Karachi office accounted for 79 companies, or 39% of the 202 incorporated companies. Lahore and Islamabad had a total of 68 and 42 companies each. Company registration offices of Faisalabad, Multan, and Peshawar registered 4, 5, and 4 companies respectively.

Total authorized capital of the 198 limited by shares companies registered during Oct 2004 amounted to Rs. 4,157.15 million. 182 were private companies having authorized capital of Rs. 1,823.25 million, 8 Single Member Companies with an authorized capital of Rs. 13.3 million, and 8 were public companies with an authorized capital of Rs 2,320.6 million.

 

 

COMPANY KIND & AUTHORIZED CAPITAL

CATEGORY OF COMPANIES

NO. OF COMPANIES

AUTHORIZED CAPITAL(PAK RS. IN MILLION)

Public Company

8

2,320.6

Private Company

182

1,823.25

Single Member Company

8

13.3

TOTAL

198

4,157.15

The analysis of new registration by Sectoral Classification during the month of Oct 2004 reveals that the most flourishing sector in terms of number of new registration is Services sector whereby 26 companies were registered, followed by 22 companies registered in Trading and 19 in Communication sector.

NO.

SECTOR NAME

NUMBER OF COMPANIES

1

Finance and Banking

3

2

Textile

10

3

Trading

22

4

Fuel and Energy

7

5

Engineering

4

6

Auto and Allied

4

7

Transport

6

8

Communication other than transport

19

9

Chemical and Pharmaceuticals

17

10

Paper and Board

4

11

Construction

7

12

Real Estate Development

10

13

Food and Beverages

6

14

Information Technology

15

15

Services

26

16

Cabels and Electrical Coods

1

17

Leather and Tanneries

1

18

Power Generation

3

19

Education

3

20

Sport Goods

1

21

Tourism

2

22

Mining and Quarrying

2

23

Glass and Ceramics

2

24

Vanaspati and Allied

1

25

Corporate Agricultural Farming

4

26

Miscellaneous

22

 

TOTAL COMPANIES

202

The total number of companies at work as on Oct 31, 2004 were 44,618 including 2,801 public companies, 40,562 private companies, 176 single member companies, 497 associations not for profit, companies limited by guarantee and trade organizations, 577 foreign companies and 5 companies with unlimited liabilities. This is an increase of 6% as compared to 42,162 companies registered upto Oct 31, 2003.

NUMBER OF COMPANIES AT WORK

Category of Companies

No. of Companies

Public Listed Companies

636

Public Unlisted Companies

2,165

Private Companies

40,562

Single Member Companies

176

Association under section 42

275

Companies under section 43
(Guarantee limited companies)

54

Trade Organizations

168

Companies with Unlimited Liability

5

Foreign Companies

577

TOTAL

44,618

 

 

The growth in company incorporation characterized the whole of the past year whereby it is observed that the overall expansion is contributed by 46% increase during the preceding twelve months in comparison with the previous period. During the period from Nov 01, 2003 to Oct 31, 2004, the numbers of new companies registered are 2,456 as against only 1,684 companies registered during the previous twelve months. Looking ahead, the corporate sector is anticipated to grow at a higher pace in future as well.