Tuesday, 25 June 2024
SECP allows startups to raise capital against property

SECP issues circular enabling startups to increase capital against property

SECP issued a circular No 11 of 2021 explicitly allowing private companies and startups to increase capital by receiving immovable property, intangible assets and services from investors.

Securities and Exchange Commission of Pakistan (SECP) allows to business startups to increase capital. The decision was taken for the support of businesses especially startups and small business units.

The Securities and Exchange Commission of Pakistan (SECP) issued a circular. Where SECP allows private companies to increase capital against immovable property, intangible assets and services from investors. This decision taken at supporting entrepreneurship and encouraging business climate for small business units and firms. Especially, business startups and potential business investors.

The Securities and Exchange Commission of Pakistan (SECP) explained that private companies could raise finances from the investors other than their current shareholders to finance their working capital requirements in the business.

See also  Is Elon Musk Charging for Twitter

ALSO READ | Government Reopens Applications Under Kamyab Jawan Loan Program

Circular 11 of 2021 Issuance of Shares under Companies Act 2017

This circular No. 11 of 2021 under Companies Act 2017 issued to bring-in the desired clarity with regard to section 83 of the Companies Act, 2017. By Allowing all companies, both private and public, to issue shares by way of “right”. Either for cash or a consideration otherwise than in cash. Subject to compliance with section 70 of the Companies Act 2017, and enabling private companies to increase equity from outside their existing members / shareholders.

A d v e r t i s e m e n t

SECP | Startups | Capital | Shares | Businesses | Securities & Exchange Commission of Pakistan |

Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

1 Comment

Comments are closed.
Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: