The Securities and Exchange Commission of Pakistan (SECP) has added a new entity to the Companies act 2017 by the name of “Startup-company”
According to the definition a “Startup company” means a company that is in existence for not more than 10 years from the date of its incorporation or such other period or periods as may be specified, and has a turnover for any of the financial years since incorporation that is not greater than Rs500 million or such other amount or amounts as may be specified.
“Startup company” means a company that is working towards the innovation, development or improvement of products or processes or services or is a scalable business model with a high potential of employment generation or wealth creation or for such other purposes as may be specified; or such other companies or classes of companies as may be notified by the commission.
According to the rules specified by SECP a company formed by the splitting up or re-construction of an existing company shall not be considered as a startup company.
