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On 22 October 2026 the Securities and Exchange Commission of Pakistan (SECP) issued a press release advising companies to comply with the legal adviser requirement in the Lawyers Welfare and Protection Act, 2023 (Act No. XII of 2023). The requirement has been law since the Act came into force on 31 March 2023, but SECP has now said it will act against companies that have not complied.
In short: every incorporated company with paid-up capital of more than Rs 20 million must engage at least one practising advocate as legal adviser on a retainership basis, and report the adviser's particulars to the registrar on Form-9 under section 197 of the Companies Act, 2017. SECP will initiate action against non-compliant companies.
What the law requires
Section 10 of the Act states that every incorporated company having more than twenty million rupees of paid-up capital, and every autonomous body, corporation or statutory authority, must engage at least one practising advocate as legal adviser on a retainer basis. No advocate may serve more than three such entities as legal adviser at the same time.
| Point | Requirement |
|---|---|
| Who is covered | Incorporated companies with paid-up capital above Rs 20 million (as well as autonomous bodies, corporations and statutory authorities) |
| Who can be appointed | A practising advocate |
| Basis of engagement | Retainership |
| Limit on the adviser | An advocate may act for no more than three such entities at once |
| Reporting | Particulars of the legal adviser filed with the registrar on Form-9 under section 197 of the Companies Act, 2017 |
The test is paid-up capital, not authorised capital. Check the figure in your latest audited balance sheet and in SECP's records, and remember that a rights issue or other allotment can take a company over the threshold during the year.
What companies should do now
- Confirm the company's paid-up capital and whether it exceeds Rs 20 million
- Choose a practising advocate and confirm in writing that they do not already act as legal adviser to three entities
- Sign a retainership agreement and approve the appointment through the board
- File Form-9 with the registrar through SECP's eZfile, giving the adviser's particulars
- Enter the appointment in the register of directors and officers, and diarise renewals and any change of adviser, which also needs a Form-9 filing
- Add the requirement to your annual compliance checklist
How Veridian can help
Our corporate law and secretarial practice checks whether your company is covered, prepares the board resolution and register entries, and files Form-9 on eZfile. The legal adviser itself must be a practising advocate, whom you appoint directly. If your company has not yet filed, book a consultation and we will help you get compliant quickly.
Official sources
Frequently asked questions
Which companies in Pakistan must appoint a legal adviser?
Every incorporated company with paid-up capital of more than Rs 20 million must engage at least one practising advocate as legal adviser on a retainership basis, under section 10 of the Lawyers Welfare and Protection Act, 2023.
How is the legal adviser's appointment reported to SECP?
SECP has advised companies to report the particulars of the appointed legal adviser to the registrar on Form-9 under section 197 of the Companies Act, 2017.
Can one advocate be legal adviser to several companies?
Yes, but no advocate may serve as legal adviser to more than three such entities at the same time.
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.