History of Company Law in Pakistan(Educational purpose)

Today the corporate sector of Pakistan is governed by Companies Ordinance of

1984. The history of corporate law in this region is much older than the history of Pakistan.
Great Britain passed Companies Act in 1908 which introduced several important provisions
relating to company administrations. In 1913 after five years, Companies Act of 1913 was
passed in British India. Pakistan came into being on 14 August 1947 and adopted the
companies Act of 1913. In 1959 a company Law Commission was set up to make laws in
accordance with modern times. Report of Company Law Commission of Pakistan was
published in 1960. Finally the Companies Act of 1913 was replaced by the Companies
Ordinance 1984.

Main Objectives of Companies Ordinance

1984
a. Its main purpose is to consolidate (Unite into one) the law related with companies and
certain other associations.
b. Second purpose is to make sure the growth of Corporate Enterprises (An organization
created for business ventures) in Pakistan.
c. To protect the investors and creditors. This is important because foreign investments require
better protection and minimum risks and hence the objective of law is to save them.
d. Promotion of investment and development of economy.

Registration of a Company in Pakistan

Company Registration in Pakistan - Requirements and Procedure:

This brief overview explains, in very general terms, the procedure and requirements for
registration of a company in Pakistan. These brief notes are for general guidance only and
should not be taken as a substitute for thorough and professional legal advice.

The Companies Ordinance, 1984 provides for three different types of companies:

 A company limited by shares

 A company limited by guarantee
 An unlimited liability company

Further, under the Companies Ordinance, 1984 two types of limited liability companies are
provided for, namely:

 A private limited company

 A public limited company (which may be listed or unlisted)
 A foreign company

How to Register a Company in Pakistan

Companies remain the most favored form of business organizations in Pakistan

especially for medium and large-scale business enterprises. Legal regime for establishment
and regulation of companies in Pakistan is given in the Companies Ordinance, 1984.
The function of administration of these companies is vested in the Securities and
Exchange Commission of Pakistan and the Registrar of Companies appointed by the
Securities and Exchange Commission of Pakistan for a Province of Pakistan where such
company is to be registered.

Under the provisions of the Companies Ordinance, 1984 a company is a

corporate body with separate legal entity and a perpetual (Continuing forever) succession
and a company may be formed by persons associating for any lawful purpose by
subscribing their names to the Memorandum of Association and complying with other
requirements for registration of a company under the provisions of the Ordinance.