Service overview
Modaraba management is a regulated Islamic finance business subject to its own registration and Shariah conditions.
A company certificate does not itself authorise a regulated business. Depending on the activity, SECP may require prior formation permission, incorporation, a separate operational licence, and continuing financial and fit-and-proper compliance.
Who is eligible for Modaraba Management Company Authorisation?
Assess sponsor eligibility, capital, management competence and Shariah governance under the relevant Modaraba framework.
Modaraba management must satisfy promoter suitability, Shariah compliance and sector-specific company structure. The management company's permission is distinct from formation or floatation of an individual Modaraba.
Documents and information for Modaraba Management Company Authorisation
Prepare the following information for modaraba management company authorisation. The relevant regulator may require further forms or certified evidence, depending on the applicant and chosen procedure.
- Sponsor and corporate documents
- Business and Modaraba plan
- Shariah governance
- Directors' information
- Financial resources.
How can I obtain Modaraba Management Company Authorisation in Pakistan? — step-by-step guide
- 01Identify the appropriate application route and eligibility
First determine whether the proposed applicant and activity fall within this procedure. Assess sponsor eligibility, capital, management competence and Shariah governance under the relevant Modaraba framework. Review the separate conditions and exclusions in the eligibility section before submitting any form or payment.
- 02Prepare the application documents and evidence
Start with the particulars listed for this service: Sponsor and corporate documents; Business and Modaraba plan; Shariah governance; Directors' information; Financial resources.. Ensure the names, applicant identity and documents are consistent. The authority may require further supporting material under its current checklist.
- 03Check the current regulator instructions before filing
Refer to the regulator resource identified on this page (SECP official capital-markets and NBFC licensing ↗). Reconfirm the currently prescribed forms, online or physical submission method, supporting evidence, fee and any current amendments. Do not assume that historic processing times or fees remain applicable.
- 04Choose the Modaraba manager and fund structure
Determine the eligible Modaraba management company, proposed Modaraba business and the Shariah governance model.
- 05Seek SECP Modaraba management approval
Prepare sponsors, board and religious/Shariah compliance arrangements under the dedicated Modaraba company statute and applicable rules.
- 06Complete formation and separate Modaraba authorisations
Register the management company and pursue the proposed Modaraba's own formation or flotation permissions as applicable.
- 07Operate under Shariah and financial reporting duties
Implement separate accounts, management records and regulatory returns.
- 08Keep the approval record and track ongoing obligations
After the authority has made its decision, retain the acknowledgement, correspondence, evidence of approval and any conditions attached to it. Maintain statutory accounts, Shariah audit, investment rules and ongoing SECP filings. Check whether separate approvals, renewals or reporting duties apply to the actual business.
Use the current regulator checklist to confirm that every listed item is still required and that any activity-specific conditions have been met. The items below are drawn from the document requirements identified on this page, not a representation that the checklist is exhaustive.
- Sponsor and corporate documents
- Business and Modaraba plan
- Shariah governance
- Directors' information
- Financial resources.
Before signing or paying, reconcile the particulars across Sponsor and corporate documents and Business and Modaraba plan; check the applicant and business classification, identify the person authorised to submit, and retain a copy of the final application and official correspondence. Official instructions control if the portal or law has changed.
Regulator resource: SECP official capital-markets and NBFC licensing
The pathway above identifies the distinct statutory steps for this service. Confirm the exact current prescribed form, supporting checklist and submission channel with the competent authority before applying.
After registration or approval
Maintain statutory accounts, Shariah audit, investment rules and ongoing SECP filings.
Modaraba management company and flotation: two distinct authorisations
Primary-source research note. The following procedural analysis is based on the identified government or regulator sources. Confirm enacted amendments, applicable forms, fees and filing requirements on the date of submission. A consultation draft is not operative law merely because it has been published. This note does not represent final legal-editor certification of the entire guide.
Legal regime
The Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Modaraba Companies and Modaraba Rules, 1981 govern the sector. SECP publishes a distinct guidance flowchart, promoters' guide, model memorandum and rules. Corporate incorporation alone does not establish authority to float a modaraba.
Management company registration
First establish the appropriate management company and seek its registration with the Registrar (Modarabas). Prepare constitutional objects, shareholding and sponsor and director fit-and-proper evidence, and review the currently applicable capital and regulatory criteria. Do not reuse historic thresholds without confirming later rules.
Separate modaraba flotation
SECP's flowchart identifies a separate prescribed application concerning the modaraba itself, supported by a prospectus addressing proposed business, subscriptions, capital and profit distribution. The Registrar's review and the Religious Board's consideration are distinct from registration of the original management company.
Ongoing regulation
Maintain the permitted business, Shariah oversight, reporting, investment and prospectus commitments. Reconcile SECP's older explanatory wording under the Companies Ordinance, 1984 with current corporate law and later modaraba instruments before preparing the application.
Official legal and regulatory sources
Governing law & official references
Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and applicable Modaraba Regulations and SECP directives.
The links below lead to government or official regulatory sources relevant to this service. Use the currently consolidated Act, regulations, statutory checklist and official portal when making an application.
How Chambers can assist
Chambers can review the legal route, identify regulatory constraints, prepare or review the supporting corporate and legal documents, manage the prescribed submission and correspond with the competent authority where instructed. The scope of the engagement will be determined by the applicant’s particular circumstances.
For an initial enquiry, identify the proposed activity, applicant entity and current stage, and provide the available documents indicated above. Please avoid sending confidential or identity-sensitive records through an unencrypted first contact.
Common questions about Modaraba Management Company Authorisation
Who is eligible for Modaraba Management Company Authorisation in Pakistan?
Assess sponsor eligibility, capital, management competence and Shariah governance under the relevant Modaraba framework.
What documents are needed for Modaraba Management Company Authorisation?
Sponsor and corporate documents; Business and Modaraba plan; Shariah governance; Directors' information. Additional requirements can apply to the actual business or regulator.
How can I obtain Modaraba Management Company Authorisation in Pakistan?
Choose the Modaraba manager and fund structure: Determine the eligible Modaraba management company, proposed Modaraba business and the Shariah governance model. Seek SECP Modaraba management approval: Prepare sponsors, board and religious/Shariah compliance arrangements under the dedicated Modaraba company statute and applicable rules. Complete formation and separate Modaraba authorisations: Register the management company and pursue the proposed Modaraba's own formation or flotation permissions as applicable. Operate under Shariah and financial reporting duties: Implement separate accounts, management records and regulatory returns.
This guide is general information, not advice on your facts. Check the applicable law, notifications, updated regulator checklists and jurisdiction before acting. The authority alone determines eligibility, acceptance and approval; no outcome or processing period is guaranteed.