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The News

Published Date: Dec 17, 2015

SECP denies contents of article in ‘The News’

ISLAMABAD: In response to the article published in daily The News dated 13-12-2015, titled “Declining investment inflows” by Dr Vaqar Ahmed and M Abdul Wahab, the SECP denies its contents to the extent the same pertains to SECP.
SECP clarified in a statement that in case of online registration of company there is no role of consultant, since the application for online submission can only be signed and submitted by the subscriber to the Memorandum of Association. It said the e-Services system of the SECP enables the promoters to submit documents online without the need of visiting any SECP office. The system is available 24/7 and anyone can use the system anytime from anywhere in the world.
For the facilitation of the stakeholders, it said the SECP has made available on its website a host of information, such as the name search facility, model memorandums and articles of associations of more than 80 major business sectors, different guides on incorporation and post-incorporation requirements, fee calculators etc. Moreover, the SECP has already introduced different online payment options in e-Services which include payment of fee through credit cards and online fund transfer facility, which make the system really hassle fee and user friendly. It said during online incorporation, only few essential information is required to be entered on one page (the JSP page) and the system automatically populates data into the required statutory forms. To further facilitate online filing, fee for online submission has been kept lower than that of offline submission. Besides, Fast Track Registration Services (FTRS) have also been introduced for completion of various services offered by the Commission, including name reservation and company registration, within a minimum of four working hours.
The SECP said the subscribers also have the option to submit documents offline/manually. “In that case too, it is not mandatory or necessary to hire the services of a consultant. Only documents in physical form can be filed through consultant. The promoters/ business community may themselves file the documents and get a company registered by availing the facilities provided by SECP,” it said.
It said perhaps the information in the said article has been obtained from the “Doing Business” report. “The fee mentioned in the said report is probably based on top 500 consultants in the world which may charge extraordinary fee. Whereas, in fact, if the services of a consultant are hired for the purpose of registering a company, they normally charge Rs10,000 to Rs20,000 fee.”
It is pertinent to mention that a time frame for disposal of various returns/applications, submitted to the registrar, has been prescribed in the Companies (Registration Offices) Regulations, 2003 and the Registrars are bound to follow the given time frame, and most of cases are disposed of within the given time frame. Under the said Regulations, for confirmation of name, registration of charges and issuance of copies, the given time frame is one day, while all the applications for the incorporation of companies are to be disposed of in two days.
The SECP said there is another misconception in the said article that “despite of online filing system one has to visit the office physically to obtain certified copies”. “In fact, if at the time of submission, the applicant mentions that the copies should to be dispatched, the instructions are followed and the applicants need not to visit the office.”
The SECP said presently, over 70 percent of companies are being incorporated through online submission which clearly shows the trust the stakeholders have in the SECP e-Services system. “Moreover, 2,216 new companies have been registered during Jul to Nov, 2015, as compared to 1,723 in the same period last year which depicts a growth of over 28 percent and is a clear sign of confidence by the investors.”
The statement said the SECP has received no major complaints regarding delays in registration of company or receipt of CTCs. “The SECP continuously reviews and modifies its systems and procedures to ensure hassle fee availability of services to the stakeholders/corporate sector and will continue its reforms in the future,” it added.