A Public Limited Company (PLC) in Pakistan is a legal business structure that allows the company to raise capital from the general public through shares. Regulated by the Securities and Exchange Commission of Pakistan (SECP) under the Companies Act, 2017, this form of company is ideal for large businesses and corporations that plan to list on the stock exchange or attract public investments.
This article explains what a public company is, how it works in Pakistan, how it differs from private companies, and how to register one under Pakistani law, with real examples and frequently asked questions.
What is a Public Company?
A Public Company is a company that:
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Has at least three directors
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Has at least seven members (shareholders)
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Can invite the general public to subscribe to its shares
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May be listed on a stock exchange (optional)
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Uses “Limited” at the end of its name (e.g., ABC Limited)
Public companies are governed under the Companies Act, 2017 and must meet higher regulatory and disclosure requirements than private companies.
What is a Public Company in Pakistan?
In Pakistan, a Public Company is a business registered with SECP that:
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Can raise funds from the public by issuing shares, debentures, or other securities
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Must comply with SECP corporate governance guidelines
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Can be listed on the Pakistan Stock Exchange (PSX) if it meets listing criteria
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Must maintain transparency and file periodic reports with SECP and PSX (if listed)
Public companies are ideal for large-scale businesses requiring external capital for expansion.
Legal Definition – Companies Act, 2017
As per Section 2(54) of the Companies Act, 2017:
“A public company means a company which is not a private company and has a minimum of seven members and three directors.”
A public company can be:
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Listed: Registered on a stock exchange to offer shares to the public
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Unlisted: Offers shares to the public but is not traded on a stock exchange
Difference Between Public and Private Company
| Feature | Public Company | Private Company |
|---|---|---|
| Minimum Members | 7 | 2 (or 1 for SMC) |
| Maximum Members | No limit | 50 |
| Minimum Directors | 3 | 2 |
| Share Offering | Allowed to public | Not allowed |
| Stock Exchange Listing | Optional | Not allowed |
| Name Ending | “Limited” | “(Private) Limited” |
| Regulatory Compliance | High | Moderate |
| Transparency | Public disclosure required | Limited disclosure |
How to Register a Public Company in Pakistan?
The SECP handles the incorporation of public companies in Pakistan. The process is more rigorous than private companies due to higher compliance requirements.
Step-by-Step Registration Process:
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Name Reservation
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Submit Form CNIC-1 via SECP eServices
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Name must end with “Limited”
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Approval in 1 working day
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Preparation of Documents
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Memorandum & Articles of Association (with public company clauses)
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CNICs/passports of all directors and shareholders
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Form 27 (particulars of directors)
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Form 28/29 (appointment notices)
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Form 45 (registered office)
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Bank challan or proof of fee payment
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Submission of Incorporation Application (Form INC-1)
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Upload documents via eServices portal
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Pay incorporation and filing fees
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Issuance of Certificate of Incorporation
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SECP issues the certificate along with Company Registration Number (CRN) and online SECP login credentials
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Time: 5 to 7 working days (may take longer depending on scrutiny)
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Post-Incorporation Compliance
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Obtain NTN from FBR
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Open a corporate bank account
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Appoint company secretary (mandatory for public companies)
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File prospectus if offering shares publicly
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Fulfill annual return filing, AGM, audit, and board meeting requirements
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Public Company Members
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Minimum Members: 7
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Minimum Directors: 3
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Maximum Members: No upper limit
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Members can include individuals, companies, and institutions.
Each shareholder contributes capital and receives voting rights according to shareholding. Public companies must hold an Annual General Meeting (AGM) every year.
Public Company Name
The company’s name must end with “Limited” and should not:
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Resemble an existing company or trademark
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Include prohibited or misleading terms (e.g., bank, trust, etc.)
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Misrepresent government affiliation
Examples:
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✅ Global Textiles Limited
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✅ Future Energy Limited
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❌ State Financial Limited (may imply government backing)
Check name availability using SECP’s tool:
🔗 SECP Company Name Search
Public Company Examples in Pakistan
Here are well-known public companies in Pakistan:
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Habib Bank Limited (HBL) – Banking
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Lucky Cement Limited – Cement manufacturing
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Engro Corporation Limited – Conglomerate
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MCB Bank Limited – Banking
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K-Electric Limited – Energy
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Nestlé Pakistan Limited – Food and beverages
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Attock Petroleum Limited – Oil and gas
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TPL Properties Limited – Real estate
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Millat Tractors Limited – Automotive
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United Bank Limited (UBL) – Banking
All the above companies are listed on the Pakistan Stock Exchange (PSX).
Frequently Asked Questions (FAQs)
What is a public company?
A public company is a legal business entity that can raise capital by offering shares to the general public and may be listed on a stock exchange.
What is a public company in Pakistan?
In Pakistan, a public company is registered with SECP under the Companies Act, 2017, has at least 7 members and 3 directors, and can invite the public to invest in its shares.
What is the difference between a public and private company?
A public company can sell shares to the general public and has no member limit, whereas a private company cannot offer shares to the public and limits members to 50.
How many members are required for a public company?
A public company must have at least 7 members (shareholders) and 3 directors.
What are examples of public companies?
Examples include HBL, Engro, MCB Bank, Lucky Cement, and Nestlé Pakistan, all of which are listed on the Pakistan Stock Exchange (PSX).
Can a private company be converted to a public company?
Yes, through a special resolution passed by shareholders, followed by filings and SECP approval.
