SECP Marks 39,704 Companies Inactive Over Four Years of Non-Filing

The affected companies cannot open new bank accounts or access certain financial services until they submit overdue filings and restore their active status.

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

The action aims to improve the reliability of Pakistan’s corporate register and prevent dormant companies from being misused. The inactive status will appear in the SECP’s system and remain visible to banks and other relevant stakeholders.

Companies placed on the inactive list will not be able to open new bank accounts until they submit their overdue documents and regain active status. They will also face restrictions on accessing financial services and registering changes in their directors.

According to the SECP, Lahore accounts for the largest number of affected companies, with 13,927. Islamabad follows with 13,859, while Karachi has 4,868 companies marked inactive.

The remaining companies are distributed across Peshawar (2,031), Multan (1,861), Faisalabad (1,384), Gilgit (1,102), Quetta (436) and Sukkur (236).

Under the Companies Act, 2017, filing annual returns and, where required, financial statements is a legal obligation. These documents help keep public records of companies, their ownership and management up to date.

The SECP said prolonged non-filing weakens the corporate register and can obstruct efforts to prevent money laundering and terrorist financing. By identifying companies that have not met their reporting obligations, the regulator aims to strengthen transparency and accountability across the corporate sector.

Meanwhile, Pakistan’s corporate register continues to expand. The country had 317,002 registered companies at the end of September 2026. The SECP registered 43,559 new companies during the previous financial year, marking a 24% increase compared with the year before.

The regulator has also digitised company name reservation and incorporation processes. According to the SECP, 99.9% of newly registered companies are now incorporated online.

SECP Chairman Dr. Kabir Ahmed Sidhu said a credible corporate register is essential for building trust in the business sector. He added that the regulator aims to protect the integrity of the financial system while giving companies a clear opportunity to return to compliance.