ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) registered 3,923 companies in 2011-12 compared to 3,400 companies registered during the preceding financial year, showing an increase of 15 per cent.

Out of these 3,923 companies, 3,571 were private, 237 single-member, 38 public unlisted, 31 foreign companies and 41 non-profit associations, four trade organisations and one company limited by guarantee under Section 43 of the 1984 Companies Ordinance.

In June 2012, 364 companies were registered, which included 325 private companies followed by 23 single-member companies, five public unlisted companies, six non-profit associations and five foreign companies.

An official of the SECP said that the Commission has a vision of promoting corporatisation of businesses so that these can better contribute to progressive development of the economy.

“We need to reduce grey economy and promote formal sectors,” the official said.

As of June 30, 2012, the total number of companies reached 62,343 and an increase of five per cent has been witnessed as compared to the total number of 59,451 companies as of June 30, 2011.

The corporate growth is a positive sign and reflects expansion of documented, formal and structured corporate sector which results into more business opportunities and development of the economy.

The increasing trend in registration of companies has been made possible due to the SECP’s pro-registration facilitation mechanism. Almost 60 per cent of new registration is taking place using online services.

The total authorised capital and paid-up capital of the companies registered during the preceding financial year, amounted to Rs103.4bn and Rs11.91 billion, respectively. During 2011-12, 1,990 companies increased their authorised capital with the aggregate authorised capital increment of Rs131.44bn and 1,198 companies raised their paid-up capital with the total paid-up capital increment amounting to Rs217.38 billion.