Mohsin Siddiqui (Chief Reporter)
The Securities and Exchange Commission of Pakistan (SECP) has announced a record-breaking registration of 2,864 new companies in July 2024. This remarkable achievement marks a 25% increase compared to the same month last year, bringing the total number of registered companies in Pakistan to 225,561.
In July, private limited companies dominated the new registrations, making up approximately 58% of the total. Single-member companies accounted for 39%, while the remaining 3% comprised public unlisted companies, not-for-profit associations, trade organizations, and limited liability partnerships. Impressively, 99.8% of these registrations were completed online, showcasing the efficiency and accessibility of SECP’s online registration system.
The IT sector led the surge in new company registrations, with 471 companies formed in July. The trading sector followed with 364 new companies, and the services sector closely trailed with 362 registrations. Other significant sectors included real estate development and construction with 284 companies, tourism with 164, and food and beverages with 139.
The e-commerce sector also saw substantial growth, with 120 new companies registered. The education sector followed with 111 new companies, and the textile sector registered 65 new companies. Additional sectors such as marketing and advertisement, corporate agricultural farming, chemicals, healthcare, and power generation also experienced significant numbers of new company formations. Conversely, smaller sectors like arts and culture, logging, and sports-allied saw fewer registrations.
Foreign investment played a pivotal role in the surge of new company registrations, with 86 new companies attracting international funding. Investors came from a diverse array of countries, including Afghanistan, Antigua and Barbuda, Australia, Azerbaijan, Canada, China, Germany, Greece, Iraq, Italy, the Netherlands, Poland, Qatar, Russia, Sri Lanka, Turkey, the UK, the US, and Zambia.
China emerged as the largest foreign investor, contributing to the registration of 64 new companies. Turkey followed with investments in three companies, while Afghanistan and the UK each invested in two companies. The remaining countries each invested in one company, demonstrating the global interest in Pakistan’s expanding business landscape.
The record number of new company registrations in July underscores a vibrant and dynamic business environment in Pakistan. The significant increase in registrations reflects growing investor confidence and the attractiveness of Pakistan as a destination for business ventures. The surge in foreign investment further highlights the international community’s interest in participating in Pakistan’s economic growth.
The near-universal use of SECP’s online registration system is a testament to the efficiency and user-friendliness of the platform. This digital approach has made it easier for entrepreneurs to establish new businesses, reducing bureaucratic hurdles and fostering a more conducive environment for business growth.
The IT sector’s leading position in new registrations indicates the growing importance of technology and innovation in Pakistan’s economy. The substantial growth in the trading and services sectors also points to a diversified economic landscape with multiple avenues for business opportunities.
The continuous rise in company registrations, coupled with substantial foreign investment, suggests a promising future for Pakistan’s business environment. This trend is expected to continue as more international investors recognize the potential of the Pakistani market.
