Introduction
Every company in Pakistan is registered under a specific principal line of business—a key descriptor that defines its core operations, sector classification, and compliance scope. Over time, businesses evolve, diversify, or pivot, which may require them to formally change their declared line of business with the Securities and Exchange Commission of Pakistan (SECP). This change must be reported using Form 4, an official document required under the Companies (General Provisions and Forms) Regulations, 2018.
In this guide, we explain how to change your company’s principal business activity, the step-by-step process for submitting Form 4, and the legal implications of this alteration.
What is the Principal Line of Business?
The principal line of business is declared at the time of incorporation and listed in the company’s Memorandum of Association (MOA). It determines:
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The company’s regulatory category and tax treatment
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The business code (PSIC) used in SECP and FBR records
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Applicable licensing requirements or industry-specific regulations
When Should You Change Your Line of Business?
You should consider changing your principal business if:
| Scenario | Action Required |
|---|---|
| Business pivot or expansion | Add or change principal activity |
| Entering a new sector (e.g., tech, services) | Update SECP records to reflect the shift |
| Old activity discontinued | Remove outdated business description |
| Rebranding or restructuring | Align MOA with new strategic direction |
Legal Basis for Filing Form 4
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Governed under Section 32 of the Companies Act, 2017
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Form 4 is required when there is any alteration in the company’s registered particulars, including change in business activity
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Must be submitted within 30 days of the decision to alter
Step-by-Step Procedure to File Form 4 for Business Activity Change
Step 1: Board Resolution
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Hold a board meeting and pass a resolution to change the company’s principal business activity
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If the MOA requires amendment, obtain special resolution from shareholders
Step 2: Update the Memorandum of Association (MOA)
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Modify Clause III (Objectives Clause) of the MOA
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Highlight the new business activity and remove outdated ones if needed
Step 3: Log in to SECP eServices Portal
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Access your company profile using authorized credentials
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Go to the “Change in Company Particulars” section and select Form 4 – Change in Principal Business
Step 4: Fill and Upload Form 4
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Enter the new principal business description
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Select appropriate PSIC code (Pakistan Standard Industrial Classification)
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Upload:
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Certified copy of Board or Shareholder Resolution
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Updated MOA (if altered)
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Any supporting documentation
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Step 5: Pay Filing Fee
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Fee is based on the company’s authorized capital
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SECP challan can be generated through eServices
Step 6: SECP Review and Approval
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Once reviewed, SECP will update the principal business line in its records
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The new business will reflect in your Company Profile and Form A
Filing Timeline
| Requirement | Deadline |
|---|---|
| Form 4 submission | Within 30 days of resolution |
| MOA update (if required) | Within 15 days of special resolution |
Note: Delayed filing may attract penalties under Section 510 of the Companies Act.
Implications of Changing Business Activity
| Area | Impact |
|---|---|
| FBR Profile | Update required on FBR’s IRIS portal with new code |
| Banking and Contracts | Banks may require updated documents for credit lines |
| Licensing | May trigger new licensing needs (e.g., NEPRA, PTA) |
| Chamber Membership | Chamber may require revision of registration data |
| Taxation | Tax rate or withholding category may change |
Best Practices
✅ Ensure that the Articles of Association do not restrict such changes
✅ Use the correct PSIC business code from the SECP directory
✅ Notify FBR, banks, and relevant stakeholders after SECP update
✅ Consult a legal advisor if the change involves regulated sectors (e.g., healthcare, telecom, fintech)
✅ Keep resolutions and filings for audit trail and corporate records
Conclusion
Changing your company’s principal line of business is a strategic step that must be legally documented and properly filed using Form 4. Whether you’re shifting industries, expanding into new services, or updating outdated information, compliance with SECP ensures transparency, legal recognition, and alignment with your operational reality.
Need help with filing Form 4 or changing your business line?
At Sterling Consultancy, we assist businesses in:
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Drafting board/shareholder resolutions
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Revising Memorandum of Association
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Filing Form 4 via SECP eServices
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Updating FBR, banks, and regulatory bodies
