SECP marks 39,704 companies inactive over missed filings

The Securities and Exchange Commission of Pakistan (SECP) has marked 39,704 companies “Inactive by Registrar” after they failed to file annual returns, financial statements or both for four years.

The SECP said the move would improve the reliability of Pakistan’s corporate register and help prevent the misuse of dormant companies.

What restrictions will inactive companies face?

The inactive status will appear in the SECP system and be visible to banks and other stakeholders. Affected companies cannot open new bank accounts, while their existing accounts will be frozen until they submit overdue documents and regain active status. They will also be unable to access financial services or register changes in their directors.

The inactive companies include 13,927 in Lahore, 13,859 in Islamabad, 4,868 in Karachi, 2,031 in Peshawar, 1,861 in Multan, 1,384 in Faisalabad, 1,102 in Gilgit, 436 in Quetta and 236 in Sukkur.

Why are companies required to file annual returns?

Filing annual returns and, where required, financial statements is a legal requirement under the Companies Act, 2017. These filings keep public information about companies, their ownership and their management up to date. The SECP said prolonged non-filing weakens the corporate register and can hinder efforts to prevent money laundering and terrorist financing.

The corporate register continues to grow. Pakistan had 317,002 registered companies at the end of September 2026. The SECP registered 43,559 new companies in the previous financial year, 24% more than the year before. Company name reservation and incorporation are now fully digital, and 99.9% of new companies are registered online.

“A clean and credible registry is the bedrock of trust in the corporate sector. SECP is protecting the integrity of the financial system while giving companies a clear opportunity to return to compliance,” SECP Chairman Dr. Kabir Ahmed Sidhu said.