Discover the complete list of corporate laws in Pakistan to ensure legal compliance and strategic governance for your business. Stay informed and uphold transparency!
Complete List of Corporate Laws in Pakistan
Corporate laws in Pakistan govern the incorporation, regulation, and management of companies. Here is a list of some of the key corporate laws in Pakistan:
- Companies Act, 2017: This is the primary legislation that governs the incorporation, regulation, financial structures, and dissolution of companies in Pakistan. It replaced the Companies Ordinance, 1984 and introduces various reforms to enhance corporate governance and compliance.
- Competition Act, 2010: This act provides for free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive behavior including undue concentrations of economic power, monopolistic practices, and mergers that lessen competition.
- Securities Act, 2015: This law regulates the securities industry in Pakistan, including the issue, acquisition, and transfer of securities, and the measures to counter fraudulent and unfair trade practices.
- Securities and Exchange Commission of Pakistan Act, 1997: This act establishes the Securities and Exchange Commission of Pakistan (SECP) which acts as the regulator for corporate sector, capital market, and superannuation funds.
- Insurance Ordinance, 2000: Governs the insurance industry in Pakistan and establishes a legal framework for the regulation and control of the insurance business.
- Banking Companies Ordinance, 1962: This ordinance regulates the banking companies, their business, and the banking industry as a whole.
- Companies (Appointment of Legal Advisers) Act, 1974: This act requires companies to appoint a legal adviser to handle their legal affairs.
- Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980: Provides for the floatation and regulation of modarabas (a form of Islamic investment).
- Limited Liability Partnership Act, 2017: Allows for the establishment of limited liability partnerships which provide some partners with limited liability while giving them flexibility in terms of internal management.
- Corporate Rehabilitation Act, 2018: Provides a legal framework for the rehabilitation of distressed companies through a corporate rehabilitation scheme.
These laws are supplemented by various rules, regulations, and directives issued by the Securities and Exchange Commission of Pakistan (SECP) and other regulatory authorities. Together, they provide a comprehensive legal framework to ensure that corporate entities operate in a transparent, efficient, and responsible manner.