SECP marks 39,704 companies inactive over four years of unfiled returns

Pakistan's corporate regulator has struck 39,704 companies from its active register for failing to file annual returns or financial statements for four years, a move the Securities and Exchange Commission of Pakistan said is meant to keep the corporate roll credible and stop dormant shells being misused.

The companies are now marked "Inactive by Registrar" in the SECP's system, a status visible to banks and other stakeholders. Until they file their overdue documents and return to active status, they cannot open new bank accounts, access financial services or register changes in their directors. Lahore accounts for the largest share at 13,927, followed closely by Islamabad at 13,859, then Karachi at 4,868, Peshawar at 2,031, Multan at 1,861, Faisalabad at 1,384, Gilgit at 1,102, Quetta at 436 and Sukkur at 236.

Filing annual returns and financial statements is a legal requirement under the Companies Act, 2017, and the filings keep public information on ownership and management current. The SECP said prolonged non-filing could weaken the corporate register and hinder efforts to prevent money laundering and terrorism financing.

The register itself keeps expanding. Pakistan had 317,002 registered companies at the end of September 2026, and the SECP registered 43,559 new companies in the previous financial year, 24% more than the year before. Name reservation and incorporation are now fully digital, with 99.9% of new companies registered online.

"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," SECP Chairman Dr Kabir Ahmed Sidhu said.