Amendments in Companies Act 2017
Reform ID F154
Reform Description Before: Earlier, the Companies Act, 2017 had complex regulatory requirements and was not up to date with the new business terms, such as the definition for “Startup company” was not defined. Companies were required to report subscription money to the registrar on a specified form within 45 days from the date of incorporation. Similarly, many further sub sections in the companies’ act were stringent and need to be simplified.

After: The Companies Act 2017 was updated with latest business terms and many redundant requirements were eliminated, such as the requirement to mention fathers/husbands name for a woman to register their businesses; similarly, requirements to file subscription money was also done away with.
Sector All Sectors
Beneficiaries All companies registered with the SECP
Jurisdiction/ Location Federal (Entire Pakistan)
Department Securities and Exchange Commission of Pakistan
Date of Implementation 1.12.2021
Details Difficulty Earlier, the Companies Act 2017 had complex regulatory requirements and was not up to date with the new business terms; such as the definition for “Startup company” was not defined. Companies were required to report subscription money to the registrar on a specified form within 45 days from the date of incorporation. Similarly, many further sub sections in the companies act were updated.
Analysis For the ease of doing business, the reforms were also supposed to be updated with the latest terms and methodologies and hence there was a need to update the companies act accordingly.
Solution The companies act was updated with latest business terms and many redundant requirements were eliminated; such as the requirement to mention fathers/husbands name for a woman to register their businesses; similarly, requirements to file subscription money was also eliminated. Details regarding every sub point is mentioned in the evidence.
Evidence
 Evidence

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