SECP marks 39,704 non-filing companies as inactive
ISLAMABAD (News Desk): The Securities and Exchange Commission of Pakistan (SECP) has marked 39,704 companies as “Inactive by Registrar” for failing to file annual returns and financial statements for four consecutive years, in a major clean-up drive to make the corporate register more reliable and prevent misuse of dormant entities.
The inactive status will now appear in the SECP’s system and will be visible to banks and other stakeholders. These companies will not be able to open new bank accounts until they file their overdue documents and regain active status. They will also be unable to access financial services or register changes in their directors.
According to the SECP, the highest number of inactive companies are in Lahore at 13,927, followed by Islamabad with 13,859, Karachi 4,868, Peshawar 2,031, Multan 1,861, Faisalabad 1,384, Gilgit 1,102, Quetta 436 and Sukkur 236.
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 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.
“Marking non-filing companies as inactive will make the corporate register more reliable and help prevent dormant companies from being misused,” the Commission said.
The corporate register continues to grow rapidly. 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 per cent more than the year before. Company name reservation and incorporation are now fully digital, and 99.9 per cent of new companies are registered online.
Commenting on the move, SECP Chairman Dr. Kabir Ahmed Sidhu said, “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.”
The SECP said the affected companies can restore their active status by filing their overdue returns and financial statements.