Promulgation of an enabling regulatory framework to facilitate startups in Pakistan
With the objective to promote growth in the startups sector of Pakistan, it is necessary to make relevant changes in Company Law to facilitate the incorporation process for the startups and provide a conducive regulatory environment.
A) Proposed changes in the Parent legislation (Companies Act)
i) Definition of Startups
In the Third Schedule to the Companies Act, the following category is proposed to be added:
An entity shall be considered as a Startup
Recently, the Securities and Exchange Commission of Pakistan (SECP) conducted an online survey to obtain feedback about its services delivery and to seek out suggestions from its stakeholders. Though an overwhelming majority shared their satisfaction with SECP’s services, a number of people suggested swift deployment of digital technology for ease of doing business, post-compliance requirements and supporting startups.
SECP made starting business easy, fast and cost effective
This is third consecutive year when Pakistan has improved its position on World Bank Ease of Doing Business Index. As per World Bank’s latest rankings on ease of doing business for 2020, released on October 24th, Pakistan has improved its position by 28 points from 136 to 108 which is an unprecedented improvement in the history of Pakistan. In last report for the year 2019 Pakistan’s ranking improved by 11 points from 147 to 136 mainly due to reforms introduced by the SECP, in two areas i.e. Starting a Business (142 to 130) and Resolving Insolvency (from 82 to 53).
SECP holds second ‘Design Thinking Workshop on LEAP’
The Securities and Exchange Commission of Pakistan (SECP) has held second Design Thinking Workshop on LEAP in Karachi. Leading Efficiency through Automation Prowess (LEAP) is the SECP’s project for end-to-end process automation and digital transformation, said a press release received here on Friday.
The primary focus of this initiative was to facilitate ease of doing business, to enable meeting compliance requirements through lowering cost, and to bring efficiencies in turnaround times (TATs), while accomplishing transparency and internal accountability.
SECP embarks on digital transformation, launches LEAP
Securities and Exchange Commission of Pakistan (SECP) Chairman Farrukh Sabzwari Wednesday said the commission is embarking on digital transformation, end-to-end process automation and enabling user environment for all its regulatees.
He was speaking at digital transformation workshop, organized jointly by the SECP and SAP here, a SECP press release said.
Sabzwari said the SECP’s digital transformation would improve service quality, promote transparency and enable efficient interaction for its customers.
The Securities and Exchange Commission of Pakistan (SECP) will amend Companies Act to support startups, providing an empowering environment for young innovative entrepreneurs to succeed in their ventures, an official said on Thursday.
The SECP is taking various initiatives to create an enabling regulatory framework for facilitating startups in Pakistan. These measures will attract local and international innovators,” said Shauzab Ali, SECP’s Commissioner for Information System and Technology, speaking at a session. The consultative workshop was organised by the SECP at CDC House Karachi to discuss options for a coherent industry policy for startups.