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On 31 October 2026 the Securities and Exchange Commission of Pakistan (SECP) announced that it has marked 39,704 companies "Inactive by Registrar" because they had not filed their annual returns and/or financial statements for four years. SECP says the step will make the corporate register more reliable and help prevent dormant companies from being misused.
In short: the inactive status appears in SECP's system and is visible to banks and other stakeholders. Until a company files its overdue documents with SECP and regains active status, it cannot open new bank accounts, cannot access financial services and cannot register changes in its directors.
What the status means
| Point | What SECP has said |
|---|---|
| Who is affected | Companies that have not filed annual returns and/or financial statements for four years |
| How many | 39,704 companies, announced on 31 October 2026 |
| Who can see it | Banks and other stakeholders, through SECP's system |
| Bank accounts | No new bank accounts until the company regains active status |
| Other limits | No access to financial services, and changes in directors cannot be registered |
| The way back | File the overdue documents with SECP and regain active status |
Where the companies are
| City | Companies |
|---|---|
| Lahore | 13,927 |
| Islamabad | 13,859 |
| Karachi | 4,868 |
| Peshawar | 2,031 |
| Multan | 1,861 |
| Faisalabad | 1,384 |
| Gilgit | 1,102 |
| Quetta | 436 |
| Sukkur | 236 |
| Total | 39,704 |
Why it matters
Filing annual returns and, where required, financial statements is a legal requirement under the Companies Act, 2017. These filings keep public information about companies, their ownership and their management up to date. SECP says prolonged non-filing weakens the corporate register and can hinder efforts to prevent money laundering and terrorist financing.
For the business itself, the practical cost comes first. A company that cannot open a bank account, use financial services or change its directors will struggle to trade, raise finance or bring in new management.
For context, SECP reports 317,002 registered companies at the end of September 2026, and 43,559 new companies in the last financial year, 24 per cent more than the year before.
If your company is affected
- Check the company's filing record with SECP and list every year for which the annual return or financial statements are missing
- Prepare the missing financial statements, and have them audited where the law requires an audit
- Hold the board and general meetings needed to approve them, or take advice on putting right meetings that were missed
- File the overdue annual returns and financial statements with SECP on eZfile, and check the additional fee or penalty for each late filing before you file
- Once active status is restored, go ahead with the bank account or director change you were waiting on
- If the company no longer has a purpose, take advice on closing it properly rather than leaving it on the register
- Put the yearly filings on a calendar: see our annual compliance checklist
Also from SECP: the "registrar concerned"
By S.R.O. 1974(I)/2026 of 26 October 2026, made under section 512(1) of the Companies Act, 2017, SECP has substituted the definition of "registrar concerned" in regulation 2(1)(xxxvii) of the Companies Regulations, 2024. It now means the registrar in charge of the Company Registration Office for the area where the company's registered office is, or any registrar the Commission designates for a special class or category of companies, at the head office or the relevant Company Registration Office. So, for some classes of companies, the registrar who deals with your filings may be one SECP has designated. SECP had previously published the amendment in the official Gazette as S.R.O. 1774(I)/2026 of 30 September 2026.
How Veridian can help
Our corporate law and secretarial practice works out which filings are missing, prepares the resolutions and minutes, and files the overdue annual returns and financial statements on eZfile. Our accounting and financial reporting team prepares the missing financial statements. If your bank has refused an account or a director change because of the inactive status, book a consultation and we will plan the quickest way back to active status.
Official sources
Frequently asked questions
What does "Inactive by Registrar" mean?
It is the status SECP gave on 31 October 2026 to 39,704 companies that had not filed their annual returns and/or financial statements for four years. The status appears in SECP's system and is visible to banks and other stakeholders.
Can a company marked inactive open a bank account?
No. SECP has said these companies cannot open new bank accounts, access financial services or register changes in their directors until they file their overdue documents and regain active status.
How does a company regain active status?
By filing its overdue annual returns and, where required, financial statements with SECP. Prepare and approve any missing financial statements first, then file each overdue return.
This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.