Friday, 19 August 2022

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.

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 |

Related posts

Suzuki Cultus Car to Discontinue in Pakistan

Pak Suzuki Motor Company (PSMC) has decided to discontinue Cultus car. According to media reports…
Read more

E-Filing System Implemented in Government Departments

The National Information Technology Board (NITB), a department of the Ministry of Information…
Read more

How to Make Money on Amazon in Pakistan

In Pakistan now a days everyone wants to know How to earn money from Amazon in Pakistan? here we…
Read more
Subscribe Now

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

    1 Comment

    Leave a Reply

    Your email address will not be published.