CORPORATE & SECRETARIAL SERVICES:

Welcome to SM Associates, your premier destination for company formation & secretarial services with the Securities & Exchange Commission of Pakistan. With our expertise and dedication, we make the process of establishing your business entity smooth, efficient, and hassle-free

Company Establishment with SECP:

At SM Associates, we understand that every business has unique needs and objectives. That’s why we offer a comprehensive range of company formation services tailored to suit various types of enterprises. Whether you’re a budding entrepreneur or an established corporation, we have the expertise to assist you in setting up the perfect business structure to achieve your goals.

Here are the types of companies we specialize in forming

1.    Private Limited Company

A private limited company is a popular business structure chosen by entrepreneurs and small to medium-sized enterprises (SMEs) for its numerous benefits, including limited liability protection, separate legal entity status, and flexibility in operations and ownership.

Key Features:

–      A private limited company can be formed with a minimum of two and a maximum of fifty members.

–      Shareholder’s personal assets are protected from the company’s debts & liabilities. 

–      It can enter into contracts, acquire assets, incur debts, and sue or be sued in its own name, providing a clear separation between the business and its owners.

2.    Single Member Company (Pvt) Limited:

A single-member private limited company, also known as a single-member company (SMC), is a type of private limited company that can be formed with only one shareholder. It combines the benefits of limited liability protection with the flexibility and simplicity of a sole proprietorship, making it an attractive option for solo entrepreneurs and small businesses.

Key Features:

–      An SMC private limited company is formed with a single shareholder. 

–      A single-member private limited company offers limited liability protection to its sole shareholder. This means that the shareholder’s personal assets are shielded from the company’s debts and liabilities.

–      An SMC private limited company is considered a separate legal entity distinct from its shareholders. It can enter into contracts, own assets, incur debts, and sue or be sued in its own name, ensuring a clear separation between the business and its owner.

3.    Public Company (Listed):

A public listed company is a type of business entity that has its shares listed and traded on a stock exchange, allowing members of the public to buy and sell ownership stakes in the company. Public listing offers numerous advantages, including access to capital markets, enhanced visibility and credibility, and liquidity for shareholders.

            Key Features:

–      One of the defining features of a public listed company is that its shares are listed and traded on a recognized stock exchange. This enables investors to buy and sell shares of the company through the exchange’s trading platform.

–      Public listed companies have access to a broader pool of capital through the issuance of equity (shares) or debt securities (bonds) to investors in the primary market. This access to capital facilitates business expansion, investment in projects, and funding of operations. 

–      Public listed companies have multiple shareholders who own the company’s shares. Shareholders have ownership rights and may receive dividends, attend shareholder meetings, and vote on corporate matters in proportion to their shareholding.

–      Public listed companies are subject to stringent regulatory requirements imposed by securities regulators, stock exchanges, and other regulatory bodies such as SECP, PSX & FBR. These regulations govern areas such as financial reporting, corporate governance, disclosure of material information, and insider trading to protect investors and ensure market integrity.

Overall, public listed companies play a significant role in the economy by facilitating capital formation, fostering investment, and promoting market efficiency and transparency. However, they also face challenges and responsibilities associated with regulatory compliance, shareholder relations, and market volatility.

4.    Public Company (Unlisted):

A public unlisted company, also known as an unlisted public company, shares some similarities with a public listed company but has key differences, particularly in its status regarding stock exchange listing.

Key Features:

–      A public unlisted company can have multiple shareholders, similar to a publicly listed company. These shareholders may include individuals, institutions, and other entities, and they own shares in the company.

–      Shareholders of a public unlisted company enjoy limited liability protection, meaning their personal assets are generally shielded from the company’s debts and obligations. Their liability is typically limited to the amount unpaid on their shares.

–      Unlike public listed companies, public unlisted companies do not have their shares traded on a stock exchange. As a result, they do not have access to the broader capital markets for raising funds through public offerings or secondary market trading.

–      Shares of public unlisted companies can be bought and sold through private transactions negotiated directly between buyers and sellers. However, liquidity in the shares may be limited compared to publicly listed companies due to the absence of a centralized trading platform.

Overall, public unlisted companies offer a middle ground between privately held companies and publicly listed companies, providing access to capital from a broader group of investors while maintaining some level of privacy and control. However, they may face challenges in attracting investors and raising funds compared to their publicly listed counterparts.

5.    Non Profit Associations (NPO):

NPOs are formed primarily for purposes other than making profits. They are established to pursue charitable, educational, religious, social, cultural, or other similar objectives that benefit the community or society as a whole.

Key Features:

–      NPOs can be registered as companies limited by guarantee or as associations under the Companies Act 2017. The choice of legal structure depends on factors such as the nature of activities, governance structure, and regulatory requirements. 

–      In NPOs structured as companies limited by guarantee, members’ liability is limited to the amount they agree to contribute to the company’s assets in the event of dissolution. This provides protection for members’ personal assets and encourages participation in charitable activities.

–      NPOs are required to utilize their funds and resources solely for their charitable or nonprofit purposes. They are prohibited from distributing profits or dividends to members or shareholders and must reinvest any surplus funds back into their mission-related activities.

–      Qualified NPOs may be eligible for tax-exempt status, meaning they are not required to pay income tax on their charitable activities. However, they must meet certain criteria and comply with tax regulations to maintain their tax-exempt status.

Company Secretarial Services:

At SM Associates, with our expertise and dedication, we ensure that your company’s administrative requirements are handled efficiently and effectively, allowing you to focus on growing your business. Our range of services covers a wide spectrum of corporate needs, including:

Change of Company Name: Whether you’re rebranding your business or simply updating your company’s name, we facilitate the smooth transition through the necessary legal procedures, ensuring compliance with regulatory requirements

Change of Address: Relocating your office? We handle all documentation and filings required for updating your company’s registered address, ensuring that your corporate records remain accurate and up-to-date.

Change of Officers/Directors/CEO: When there are changes in your company’s leadership team, we manage the process of updating officer and director details with the SECP, ensuring seamless transitions and compliance with corporate governance standards.

Enhancement of Authorized & Share Capital:

Need to increase your company’s authorized capital to support expansion plans? We assist in the necessary filings and documentation to enhance your company’s capital structure in accordance with regulatory requirements.

Reduction of Authorized & Share Capital:

If your company’s capital needs to be reduced for strategic or financial reasons, we guide you through the process of reducing authorized and share capital, ensuring compliance with legal procedures and safeguarding shareholder interests.

Change of Principle line of Business:

Adapting to market changes or diversifying your business activities? We help you navigate the process of updating your company’s principal line of business, ensuring accurate reflection of your company’s activities in official records

Transfer of Shares:

Facilitating the transfer of shares between shareholders? We handle the necessary documentation and filings to ensure smooth and legally compliant share transfers, facilitating seamless transitions of ownership.

Filing of AGM:

Annual General Meetings (AGMs) are a crucial part of corporate governance. We assist in the preparation and filing of AGM documents, ensuring compliance with regulatory requirements and facilitating transparent communication with shareholders.

In addition to the above services, we offer a range of other company secretarial services, including statutory compliance, maintenance of corporate records, drafting of resolutions, and liaison with regulatory authorities.