SECP Notices 28,761 Companies Over UBO Disclosure

The Securities and Exchange Commission of Pakistan (SECP) has issued show-cause notices to 28,761 companies for allegedly failing to disclose their ultimate beneficial owners (UBOs), giving the companies 30 days to meet the requirement before potential penal proceedings are initiated.

According to a news report, the regulator stated that all registered companies are legally required to identify and disclose the individuals who ultimately own or control them by submitting Form 19. The requirement is mandatory under Section 123A of the Companies Act, 2017, read with Regulation 48(5) of the Companies Regulations, 2024.

An ultimate beneficial owner refers to the actual individual who ultimately owns or exercises control over a company, either directly or through another corporate entity. This includes individuals holding at least 25% of a company’s shares or voting rights, as well as those who exercise control through other arrangements.

SECP data showed that Pakistan had 301,615 registered companies as of the end of June 2026.

The UBO disclosure framework enables regulators to look beyond registered company names and complicated ownership structures to identify the individuals who ultimately benefit from or control a business.

The requirement is designed to strengthen corporate transparency and reduce the risk of companies being used for money laundering, hiding assets and facilitating illicit financial flows.

Companies that fail to fulfil the disclosure requirement within the given 30-day period may face penal proceedings by the SECP.