Private Limited Company (Pvt Ltd)
A Private Limited Company is a separate legal entity that offers limited liability to its shareholders. Its shares are privately held, which means they cannot be traded publicly. This structure is ideal for small to medium-sized businesses aiming for scalability while protecting the personal assets of shareholders. Private Limited Companies in Pakistan are governed by the Companies Act, 2017, and regulated by the Securities and Exchange Commission of Pakistan (SECP).
Benefits
- Limited Liability:
Shareholders’ liabilities are limited to the value of their shares. - Separate Legal Entity:
The company can own property, enter contracts, and sue or be sued independently of its owners. - Perpetual Succession:
Business continuity is unaffected by changes in shareholders. - Credibility:
Enhanced trust and reputation with clients, suppliers, and financial institutions. - Tax Benefits:
Enjoy incentives and deductions available exclusively to corporate entities.
Key Features
- Shareholders: Minimum of 2, maximum of 50.
- Shares: Cannot be offered to the public or freely traded.
- Liability: Limited to unpaid share value.
Required Documents
- Memorandum of Association (MoA) – Outlines the objectives of the company.
- Articles of Association (AoA) – Details the governance and management rules.
- CNICs of all directors and subscribers.
- Proof of registered office address.
- Declaration of compliance.
- Digital signatures.
Registration Process
- Name Reservation:
- Apply online through SECP’s e-Services portal.
- Pay the nominal fee for name approval.
- Document Preparation:
- Draft and sign MoA and AoA.
- Gather all required documents.
- Submission:
- Fill Form A on SECP’s portal, attach documents, and pay the incorporation fee.
- SECP Verification and Approval:
- SECP reviews your application and issues a Certificate of Incorporation upon approval.
Legal Framework
- Companies Act, 2017
- SECP Regulations
Why Choose a Private Limited Company?
This structure is perfect for businesses that require a professional image, limited liability, and scalability with private ownership.
Public Limited Company
A Public Limited Company is a corporate entity that can raise capital by offering shares to the public. This type of company is suitable for large-scale businesses aiming for growth and expansion. Public Limited Companies are governed by the Companies Act, 2017, and regulated by the Securities and Exchange Commission of Pakistan (SECP).
Benefits
- Access to Capital:
Raise funds by issuing shares to the public. - Enhanced Credibility:
Listed status increases visibility and market trust. - Liquidity for Shareholders:
Shares can be traded on the stock exchange. - Attracting Talent:
Ability to offer stock options as incentives. - Perpetual Succession:
Ensures continuity regardless of changes in ownership.
Required Documents
- Memorandum of Association (MoA) – Defines company objectives.
- Articles of Association (AoA) – Governs internal management.
- Certified CNICs of directors and shareholders.
- Proof of registered office address.
- Proof of initial capital deposit.
- Declaration of compliance.
Registration Process
- Name Reservation:
- Apply through the SECP e-Services portal.
- Document Preparation:
- Draft MoA and AoA.
- Gather shareholder and director information.
- Filing with SECP:
- Submit documents via SECP’s portal.
- Pay registration fees based on authorized capital.
- Certificate of Incorporation:
- SECP issues the certificate upon approval.
- Public Offering (if applicable):
- File a prospectus with SECP to issue shares to the public.
Legal Framework
- Companies Act, 2017
- Securities Act, 2015
- SECP and Stock Exchange Regulations
Why Choose a Public Limited Company?
A Public Limited Company is ideal for businesses seeking to scale operations through public funding while maintaining a strong market presence and credibility.