COMPANY INCORPORATION PROCESS AND INFORMATION

Why should I form a company?

Being a regulated entity, a Company enjoys a professional image and credibility in the eyes of its customers, suppliers, creditors, and other stakeholders. The company provides the following benefits:

Protect your business name

Perpetual Existence

Enhanced Ability to raise capital

Limited Liability

Become part of a documented and regulated sector

I want to incorporate a company Do you want to incorporate as a Company or

Limited Liability Partnership?

What type of company do you want to incorporate?

One person may form a single member company by complying with the requirements in respect of registration of a private company and such other requirements as may be specified.

Private Limited Company Two or more persons so associated may form a private limited company by complying with the requirements in respect of registration of a private company and such other requirements as may be specified.

Public Limited Company Three or more persons associated with any lawful purpose may, by subscribing their names to a memorandum of association and complying with the requirements of this Act in respect of registration, form a public company.

Limited Liability Partnership: Two or more persons associated with carrying on a lawful business to profit may form an LLP by subscribing their names to incorporation documents. LLP means any written agreement between partners of a limited liability partnership, which determines mutual rights and duties of the partners and their rights and duties concerning the limited liability partnership.

Step Wise Procedure for Company Incorporation

Company incorporation may be completed in a TWO-STEP PROCESS: Name Reservation, Company Incorporation.

Apply Name Reservation and Incorporation simultaneously. In this process, the Memorandum of Association and Articles of Association are generated automatically.

What information is required for Company Incorporation

A suitable Company Name.

Principle Line of Business of the Company.

Registered Office Address.

Subscriber/Shareholder (persons who will take shares of the company).

Directors (persons who will manage the affairs of the company on behalf of the shareholders).

Details of the company’s share Capital – Authorized Capital (the maximum amount of share capital that a company is authorized to issue to its shareholders) and Paid Up Capital (the amount of money a company has received from shareholders in exchange for issued shares).

Memorandum of Association: It is a basic constitutive document for company formation. It includes five clauses defining the company Name, Location of the registered office, Principle line of business, limited liability of the company, and its authorized capital.

Articles of Association: A statutory document that specifies regulations for managing a company’s affairs e.g. number of maximum directors, manner of transfer of shares, holding of board and general meetings, etc.

CNIC copies of subscribers and in case of physical application, of witnesses to the documents.

Application forms for Name Reservation (Inc.-Form I) and Incorporation (Inc.- Form II) prescribed through Companies (Incorporation) Regulations, 2017.

What information is required for the Incorporation of a Limited Liability Partnership?

Partnership deed/agreement

Copies of CNICs of Partners and

Designated Partner's Consent to Act as Partner/Designated Partner

What are the compliance requirements

Post Incorporation compliance.

Annual compliance. requirements

Eventual compliance.

What are the annual compliance requirements?

Filing of Annual Return (Form A) required by the companies whose capital is more than 3 million and reported changes in the company during the year.

Filing of Form B by Companies under section 42.

Form C by the Companies whose paid-up capital is more than 3 million and have not reported any change during the year.

What are the eventual compliance requirements?

Following compliance requirements need to be filed by a company depending on the events.

Forms 28 and 29 for changes in the management/ officers of the Company.

Forms 7 and Form 26 for an increase in Authorized capital of the company.

Form 3 for increase in Paid capital of the Company.

Form 21 for change in address of the company.

Form 8 and Form 26 for change in the name of the Company.

Form 21, Form 5 and Form 26 for change in province of the Company.

What’s the struck-off procedure?

Where the registrar has reasonable cause to believe that a company is not carrying on business or is not in operation. He may, after complete compliance with Section 425 of the Companies Act,

Company has gone inactive, how can I convert it into active stage?

Form 39(Further details may be asked from CCD)

Form 15 I want to change nominee of SMC Company

FOR MORE INFORMATION AND ASSISTANTACE CONTACT AL AZIZ FINANCIAL SERVICES

Regards

Rizwan Alvi

AR Group of Companies

[email protected]