SECP Directs Companies to File Ultimate Beneficial Ownership (UBO) Information Through Form-19
The Securities and Exchange Commission of Pakistan (SECP) has reminded all registered companies to ensure the timely submission of Ultimate Beneficial Ownership (UBO) information through Form-19 on the eZfile portal.
Under Section 123A of the Companies Act, 2017, every company is required to disclose its Ultimate Beneficial Ownership details by filing Form-19 along with its annual return. This requirement is a key component of Pakistan’s efforts to promote corporate transparency, prevent the misuse of corporate entities, and strengthen measures against money laundering and illicit financial activities.
What is Ultimate Beneficial Ownership (UBO)?
Ultimate Beneficial Ownership refers to the natural person or persons who ultimately own, control, or benefit from a company, either directly or indirectly. A beneficial owner may exercise significant influence or control over a company even if their name does not officially appear as a shareholder or director.
Identifying and disclosing beneficial owners helps regulators understand who truly controls corporate entities and reduces the risk of hidden ownership structures being used for unlawful purposes.
SECP Urges Immediate Compliance
The SECP has observed that several companies have not yet fulfilled this mandatory filing requirement. As a result, the regulator has urged all non-compliant companies to complete the submission of Form-19 without further delay.
Companies can file Form-19 through the SECP’s eZfile portal by logging into their company account, selecting the relevant filing option, and providing complete details of their ultimate beneficial owners. The filing requires accurate information regarding ownership structures, shareholding percentages, control interests, and the particulars of each beneficial owner.
Additional Compliance Requirements
In addition to filing Form-19, companies are required to maintain an internal register of beneficial owners. This information must be reviewed and updated annually or whenever there is a change in ownership or control.
Maintaining accurate and up-to-date UBO records is essential for ensuring ongoing compliance with the Companies Act, 2017.
Penalties for Non-Compliance
Failure to submit Form-19 constitutes a violation of Section 123A of the Companies Act, 2017. Companies and responsible individuals may face significant penalties for non-compliance.
The law provides for penalties of up to Rs. 1 million on directors, officers, or other responsible persons, while the company itself may be subject to fines of up to Rs. 10 million.
Final Reminder from SECP
The SECP has strongly advised all companies to complete their UBO filings within the prescribed timelines. The regulator has also warned that legal proceedings may be initiated against companies that fail to submit Form-19 as required under the law.
Businesses are encouraged to review their compliance status and ensure that all Ultimate Beneficial Ownership information is accurately reported through the eZfile portal to avoid penalties and regulatory action.