Minimum Paid-Up Capital & Shareholder Rules for SECP Incorporation
A comprehensive capital structuring guide for business owners on SECP Authorized Capital rules, Paid-Up Capital bank deposits, Form 22 auditor certificates, and share value allocations under the Companies Act 2017.
- •Authorized Capital: Maximum capital headroom defined in MOA (standard: PKR 100,000).
- •Paid-Up Capital: Cash actually deposited by shareholders into the company's corporate bank account.
- •30-Day Bank Deposit Mandate: Subscribed capital must be deposited into the business bank account within 30 days of incorporation.
- •Form 22 Filing: Auditor certificate proving capital deposit submitted to SECP within 45 days.
Table of Contents
2. SECP Minimum Capital Rules for Startups & IT Companies
Under the Companies Act 2017, SECP removed fixed minimum paid-up capital requirements for standard private limited entities. Startups can register with an Authorized Capital of PKR 100,000 (10,000 shares of PKR 10 each).
SECP CAPITAL STRUCTURING ADVISORY
Structure Your Company Capital with ADVAQ
ADVAQ drafts share capital structures, files Form 22 auditor certificates, and manages Authorized Capital increases with SECP.
3. The 30-Day Capital Deposit Mandate & Form 22 Auditor Certificate
Within 30 days of incorporation, shareholders must deposit their subscribed capital into the newly opened business bank account. A Chartered Accountant must verify the deposit and issue an Auditor's Certificate for SECP Form 22.
4. How to Increase Authorized Capital via Form 7
When raising venture capital or issuing new equity to partners, companies file SECP Form 7 to expand Authorized Capital beyond the initial PKR 100,000 threshold.
Frequently Asked Questions
SECP CAPITAL COMPLIANCE SOLUTIONS
Manage SECP Capital Filings with ADVAQ
Authorized capital advice, Form 22 auditor certificates, Form 7 capital increases, and share transfer filings.