Securities and Exchange Commission of Pakistan (“SECP”) has issued notices to all companies ordering to declare particulars of ultimate beneficial ownership
of Shares.
“Ultimate Beneficial Owner” “means a natural person who ultimately owns or controls a company, whether directly or indirectly, through at least twenty-five percent shares or voting rights or by exercising effective control in that company through such other means, as may be specified.
Every company and every LLP has to prepare a register of its ultimate beneficial owners and shall timely record accurate and updated particulars in a timely fashion. The requirement to maintain UBO information is aimed at determining the true owners of a company who can only be natural persons.
Corporate vehicles such as limited companies, limited liability partnerships and trusts, etc. are at the heart of many tax evasion and money laundering schemes, as activities are not carried out in the name of real/natural persons, but by “legal persons” instead behind whom real controlling persons are concealed by the “corporate veil”.
In this regard detailed email have been sent to all clients and staff is requested to follow up on signature and submission of Form-43 “Declaration by Member” about ultimate beneficial ownership.
If this applies to every company and LLP, than why does government say they are trying to improve ease of doing business? We have a pandemic, recession, devaluation and now government making it harder and harder to do business. this discourages businesses from going into corporate structure and staying un-registered.
Pingback: Section 123A, Companies Act 2017 - Tariq Mir & Co – Chartered Accountants