ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued show-cause notices to 28,761 companies for failing to provide details of their ultimate beneficial owners, requiring the companies to submit the required information within 30 days.
According to the SECP, every registered company is required to provide details of its ultimate beneficial owner, meaning the actual or ultimate owner, through Form 19 at the time of filing its annual return.
An ultimate beneficial owner is defined as an individual who directly or through another company or entity owns or exercises control over the relevant company. This includes a person holding at least 25 percent of the shares or voting rights of a company, or a person exercising effective control over the company through other means.
The disclosure of ultimate beneficial ownership information is mandatory under Section 123A of the Companies Act, 2017.
According to SECP data, the number of registered companies in Pakistan stood at 301,615 at the end of June 2026.
The SECP said information about ultimate beneficial owners helps identify the individuals behind company names and complex ownership structures who actually own or control businesses.
The requirement is aimed at promoting corporate transparency and preventing companies from being used for money laundering, concealment of assets and illegal financial transfers.
The show-cause notices have been issued electronically to the concerned companies through the SECP’s e-portal. The notices have also been sent through registered email addresses to the chief executives and authorised representatives of the companies.
The concerned companies have been directed to submit Form 19 within 30 days and provide a certified copy confirming compliance.
The SECP said that legal action for imposition of penalties may be initiated against companies that fail to comply within the prescribed period in accordance with the law.