SECP Registers 2,956 New Companies in April 2025

The Securities and Exchange Commission of Pakistan (SECP) reported a record 2,956 new company registrations in April 2025, bringing the total to 252,321, a corporate growth surge with significant tax implications for businesses. Our tax law firm advises clients to ensure Federal Board of Revenue (FBR) compliance amid this digital-driven expansion.

With 99.9% digital registrations, the SECP highlights a tech-driven regulatory environment, where Private Limited Companies (56%), single-member companies (39%), and others (5%) dominate, per the text. IT and e-commerce led with 584 new companies, followed by trading (402), services (363), and real estate (255), alongside sectors like tourism (172), food and beverages (140), and pharmaceuticals (55). Foreign investment grew with 92 companies from countries like China, Saudi Arabia, and the US, signaling global confidence, though web context from Profit by Pakistan Today notes regulatory gaps in digital compliance.

From a tax law perspective, new businesses face sales tax at 17% under the Sales Tax Act, 1990, with input tax credits under Section 8B requiring meticulous reporting. Foreign investments trigger withholding tax (WHT) at 15% on foreign payments under Section 6 of the Income Tax Ordinance, while FBR audits may target IT and real estate sectors for income tax under Section 29. Posts on X reflect business optimism, but some flag compliance challenges.

Critically, the narrative of “growing confidence” may overlook digital tax gaps—web sources highlight FBR’s enforcement lag, and X sentiment questions audit readiness, potentially increasing tax risks. Clients must stay vigilant.

Our firm advises clients to review tax registrations, ensure WHT compliance, and prepare for FBR audits, navigating this corporate boom