The Paid Up Capital Certificate is one the fundamental documents that the Securities Exchange Commission of Pakistan (SECP) requires for verifying that your newly incorporated company is active and all its declared Capital is true. Sometimes, people can claim to have a company worth 1 billion rupees but only have 1 thousand rupees in its bank account. That would not make sense for any investor, tax return, or auditor. If a company is established to do business using Capital of 1 billion rupees, then 1 billion rupees it needs to be reflected in its bank account or company assets. A paid up capital certificate is also called a “receipt of subscription money” used to complete FORM 1 on the SECP Portal. It is likely that by the time you would be reading this article, the requirement to complete this step within 45 days of incorporation has been waived by the SECP.
Example of a Paid Up Capital Certificate
In the image below is an example Paid up capital certificate or Receipt of Subscription Money. It is printed on the letterhead of the issuing Chartered Accountant/Auditor and displays the company’s bank account number, company name, shareholders, and each shareholders number of shares and contributions.
Requirements for obtaining a Paid Up Capital Certificate:
- A company Incorporated with the Securities Exchange Commission of Pakistan.
- It’s incorporation Certificate, obtained at the time of incorporation.
- The company’s Memorandum and Article of Association which indicates the Companies Capital, shareholders, and the portions of their contribution to the capital.
- A corporate Bank account having at least the amount of money deposited into it as stated as “Paid Up Capital” in the Memorandum or Article of Association.
- Account Statement
- A Chartered Accountant or Auditor
If you already have a registered corporation with SECP, and a corporate bank account, obtaining a Paid Up Capital Certificate for your company is easy. To learn how to open a corporate bank account, read this article.
Process for Obtaining Paid Up Capital Certificate
All you have to do is deposit the capital or amount of money into your corporate bank account. If your company is an SMC Private Limited, only one depositor, who owns 100% of the shares is required. In case of a Private Limited Company with multiple shareholders, each shareholder needs to contribute their due share into the company’s bank account. When depositing these monies into the company’s account, whether through branch deposit, mobile banking app, or online banking, make sure to keep all records of transaction. These could be deposit slips or screenshots. This is just to track which account deposited how much money into what account on what date.
After you have done this, pick up the phone and call a Chartered Accountant or an Auditor. You can find one online, or through your friends. You can Contact Beyond Nothing .com and we can try referring you.
Tell them you have this company and need a Paid Up Capital Certificate. They will negotiate a price with you and ask you for the above mentioned items: Complete Legal Name of your Company, Article of Association, Bank Statement, transaction screenshots, etc., and their fees.
Problems you may encounter
Sometimes when making transactions for paid up capital, we forget to take a screenshot. In that case, generate an account statement for the period you made the transaction (of the depositing account) and highlight the transaction related to your deposit. Do the same for your company’s account and highlight the transaction that shows the receiving of that money.
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