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STATUTORY COMPLIANCE

Section 42 Annual Compliance

Section 42 companies have continuing licence-related governance in addition to ordinary corporate compliance.

PAKISTAN BUSINESS REGISTRATION & LICENSING GUIDESDRAFT UPDATED 11 OCTOBER 2026SECP
01

Service overview

Section 42 companies have continuing licence-related governance in addition to ordinary corporate compliance.

Filing deadlines and exemptions depend on company type, share capital, business activity, licensing status, trigger events and the version of the current forms. An obligation should be assessed for each entity rather than assumed universally applicable.

02

When does Section 42 Annual Compliance apply?

Statutory eligibility

Identify specific conditions in the Section 42 licence and non-distribution constraints; special rules may apply to activities or fundraising.

Conditions and exclusions for this application

Section 42 compliance applies to a company holding a valid Section 42 licence; check approved objects, lawful fundraising, non-distribution undertakings and any separate provincial charity obligations.

03

Documents and information for Section 42 Annual Compliance

Prepare the following information for section 42 annual compliance. The relevant regulator may require further forms or certified evidence, depending on the applicant and chosen procedure.

  • Approved objects and licence
  • Governing-body minutes
  • Funds and expenditure statements
  • Audited accounts
  • Statutory filing history.
04

How does a business complete Section 42 Annual Compliance in Pakistan?

  1. 01
    Review the licensed non-profit's conditions

    Identify approved Section 42 objects, restrictions on income, governance undertakings and reporting calendar.

  2. 02
    Prepare accounts and annual compliance evidence

    Compile expenditure by object, funds raised, audit and board decisions and relevant special returns.

  3. 03
    Make applicable SECP statutory and licence submissions

    File corporate annual returns/accounts and any licence-specific information or prior consent for changed objects/management.

  4. 04
    Check other fundraising/charity laws

    Confirm provincial charity authority and FBR treatment independently of Section 42 permission.

Regulator resource: SECP annual filings and statutory registers

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.

05

After registration or approval

Maintain restricted-purpose reporting, corporate records and applicable charity or tax compliance.

07

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 Section 42 Annual Compliance

Who is eligible for Section 42 Annual Compliance in Pakistan?

Identify specific conditions in the Section 42 licence and non-distribution constraints; special rules may apply to activities or fundraising.

What documents are needed for Section 42 Annual Compliance?

Approved objects and licence; Governing-body minutes; Funds and expenditure statements; Audited accounts. Additional requirements can apply to the actual business or regulator.

How does a business complete Section 42 Annual Compliance in Pakistan?

Review the licensed non-profit's conditions: Identify approved Section 42 objects, restrictions on income, governance undertakings and reporting calendar. Prepare accounts and annual compliance evidence: Compile expenditure by object, funds raised, audit and board decisions and relevant special returns. Make applicable SECP statutory and licence submissions: File corporate annual returns/accounts and any licence-specific information or prior consent for changed objects/management. Check other fundraising/charity laws: Confirm provincial charity authority and FBR treatment independently of Section 42 permission.

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.

KNOWLEDGE / REGULATORY INTELLIGENCE

REGULATORY DEVELOPMENTS RELEVANT TO THIS SERVICE

SECP / 9 Oct 2026SECP publishes draft amendment to Companies Regulations, 2024READ BRIEF ↗SECP / 7 Oct 2026SECP reminds relevant companies of annual general meeting and return obligationsREAD BRIEF ↗

Source-linked preliminary briefings; verify current requirements against the original publication.