SECP Launches 3-Month Regularization Scheme for Companies

The Securities and Exchange Commission of Pakistan (SECP) has introduced the Companies Regularization Scheme (CRS), effective from June 15 to September 15, 2024. This scheme allows companies to file overdue statutory returns under the Companies Act, 2017, without incurring additional fees. The Companies Regularization Scheme (CRS) enables companies to submit overdue annual returns, statutory forms, and annual accounts by paying a one-time filing fee. SECP assures that no penalties for late filings will be imposed for documents filed under this scheme. However, documents requiring registration under sections 100, 101, 105, 106, 108, or 109 of the Companies Act, 2017, are not included in this scheme. According to the SECP, the CRS scheme is open to all companies except listed ones. This includes non-listed public companies, private companies (including single-member companies), trade organizations, associations not for profit under section 42 of the Act, companies limited by guarantees, and foreign companies. According to the SECP, the CRS applies to defaults committed up to October 28, 2023, and requires physical submission of documents, as online filing for multiple returns is currently impractical. SECP urges companies to take advantage of this scheme to regularize their filings. Failure to do so will result in legal action against non-compliant companies. For more information, companies can contact their relevant Company Registration Office.