What Are The Accounting Requirements For a Registered Company In Pakistan?

Every Company Registration In Pakistan under the Companies Act, 2017 is legally required to maintain proper accounting records and adhere to various financial reporting standards. These requirements aim to ensure transparency, facilitate audits, and uphold investor confidence. Whether the company is a private limited firm, a public limited company, or a single-member company (SMC), compliance with accounting obligations is vital for its legal and financial integrity.

1. Legal Framework and Governing Authority

The primary law governing accounting requirements in Pakistan is the Companies Act, 2017. The Securities and Exchange Commission of Pakistan (SECP) oversees corporate compliance, while the Institute of Chartered Accountants of Pakistan (ICAP) sets accounting standards in line with International Financial Reporting Standards (IFRS).

2. Maintenance of Proper Books of Account

Every registered company in Pakistan must maintain books of account at its registered office or a place determined by the Board of Directors. These books must accurately reflect:

  • All sums of money received and expended

  • Details of assets and liabilities

  • Receipts and disbursements

  • Transactions and financial position of the company

The records must be preserved for at least ten years.

3. Preparation of Financial Statements

All companies are required to prepare annual financial statements, which include:

  • Balance Sheet

  • Profit and Loss Account

  • Cash Flow Statement

  • Statement of Changes in Equity (for applicable companies)

  • Notes to the Financial Statements

Company Registration In Pakistan

Financial statements must be prepared in accordance with IFRS as adopted by ICAP and notified by the SECP. Small-sized companies (as defined by the SECP) may be allowed to follow simplified standards such as IFRS for SMEs.

4. Annual Audit Requirements

Most Company Registration In Pakistan are required to get their financial statements audited by a Chartered Accountant or a firm of Chartered Accountants. The audit requirement depends on the type and size of the company:

  • Private Limited Companies (other than small companies): Audit mandatory

  • Single-Member Companies and Small Companies: May be exempted under certain conditions

  • Public Limited Companies: Audit is mandatory, with stricter standards

The auditors must be appointed at the company’s annual general meeting (AGM) and submit an auditor’s report along with the financial statements.

5. Filing with the SECP

After the preparation and audit of financial statements, companies must file them with the SECP. The timeline for submission varies:

  • Public Companies: Within 30 days of the AGM

  • Private Companies: Within 15 days of the AGM

Additionally, companies must also file an annual return, containing updated information about shareholders, directors, and registered office.

6. Tax Compliance and Reconciliation

Companies are required to prepare financial records that align with tax requirements under the Income Tax Ordinance, 2001. These include:

  • Annual income tax returns

  • Withholding tax statements

  • Sales tax records (if registered)

  • Payroll and employee-related documentation

The financial statements must reconcile with the information reported to the Federal Board of Revenue (FBR). Discrepancies can lead to penalties or audits.

7. Use of Accounting Software

Although not legally mandated, the use of accounting software is strongly recommended for accuracy and efficiency. Many companies use software such as QuickBooks, Tally, SAP, or local ERP systems to maintain ledgers, generate reports, and comply with regulatory requirements.

Company Registration In Pakistan


8. Role of Company Secretary and CFO

For public and larger private companies, the appointment of a Chief Financial Officer (CFO) and a Company Secretary is mandatory. These officers are responsible for overseeing financial reporting, compliance, and recordkeeping.

Conclusion

Accounting requirements for registered companies in Pakistan are comprehensive and rooted in legal and international standards. Proper bookkeeping, preparation of financial statements, mandatory audits, and compliance with SECP and FBR regulations form the backbone of these obligations. Companies like that stay compliant not only avoid legal issues but also build investor trust like Hamza & Hamza Law Associates and ensure long-term business sustainability. Engaging professional accountants and using reliable software are practical steps toward fulfilling these essential accounting responsibilities.

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