The Security and Exchange Commission of Pakistan (SECP) has issued guidelines for easing name reservation requirements for companies, which is a significant step towards streamlined corporatization.
In order to further simplify the name reservation process, SECP has issued name reservation Guidelines which will replace the existing FAQs for name reservation. The Guidelines provides guidance around the regulatory/legal framework governing the company’s registration including name reservation process, procedure to apply for company name including name reservation criteria, tips for appropriate and successful names etc, said a press release issued here on Tuesday. It also includes the mechanism for filing of appeal against rejection of names. These guidelines are placed on the website of the Commission.
In the guidelines, criteria for resembling name has been reviewed to facilitate the investors and business community to ease out the difficulties. Further, clarity has been provided for use of, numeric values, specific words for licensed entities/modarabas. The criteria for the word Pak/Pakistan used as prefix or suffix has been relaxed. However, proof of Government would be required for use of word ‘of Pakistan’ as it gives the impression of public sector entities.