By TaxAkounting | Your Trusted Tax & Compliance Partner
Every registered company in Pakistan — whether Private Limited, Single Member (SMC-Pvt), or Public Limited — is legally required to file its Annual Returns with the SECP and Tax Returns with the FBR each year.
Many business owners overlook these legal obligations, often due to lack of awareness. However, failing to comply can lead to penalties, loss of filer status, legal action, and company suspension.
This article explains why these filings are mandatory, the legal basis under Pakistani law, and the consequences of non-compliance — and how TaxAkounting helps your business remain safe, compliant, and trusted.
Legal Obligation Under the Companies Act, 2017
The Securities and Exchange Commission of Pakistan (SECP) regulates corporate compliance under the Companies Act, 2017 (formerly Companies Ordinance, 1984).
Key Legal References:
Section 220 – Maintenance of Books of Accounts Every company must maintain proper books of accounts and make them available for inspection when required.
Section 130 – Annual Return of a Company Every company must file its Annual Return with SECP within 30 days of holding its Annual General Meeting (AGM). The return includes details of share capital, directors, and registered address.
Consequences of Failing to File SECP Annual Returns
Failure to file your SECP returns or financial statements on time can result in:
Loss of Credibility Clients, investors, and banks verify SECP status before working with companies. Being marked inactive or penalized can damage professional reputation.
Legal Proceedings SECP may issue show-cause notices or even strike off the company’s name from the register under Section 426.
Mandatory Tax Return Filing Under the Income Tax Ordinance, 2001
Every person or entity earning taxable income must file an annual return of income with the Federal Board of Revenue (FBR).
Key Legal References:
- Section 114 – Return of Income Requires every company, AOP, and individual to file a tax return each year.
- Section 116 – Wealth Statement Mandates individuals and directors to file a Wealth Statement and reconciliation with their income return.
Consequences of Not Filing Tax Returns
Ignoring tax compliance can cause severe financial and operational consequences:
- Heavy Penalties and Surcharges Non-filers may face fines up to Rs. 2,500 per day until the return is filed, as per Section 182 of the Income Tax Ordinance.
- Loss of Filer Status Once removed from the Active Taxpayer List (ATL), you’ll face higher tax rates and reduced access to business facilities.
- Audit Selection & Legal Notices FBR can select non-filers for audit, leading to additional scrutiny and potential assessment of unpaid taxes.
- Higher Withholding Tax Rates Non-filers pay double or higher tax rates on salaries, contracts, property, imports, and bank withdrawals.
- Restricted Business Opportunities Non-filer companies cannot easily obtain government contracts, bank financing, or import/export licenses.
Why Compliance Matters
Annual filing ensures:
- ✅ Transparency – Keeps company records updated with SECP and FBR
- ✅ Accountability – Demonstrates financial and legal integrity
- ✅ Public Trust – Builds confidence with clients, investors, and authorities
- ✅ Continuity – Prevents penalties, audits, and business suspension
Compliance is not just a legal requirement — it’s a foundation for sustainable business growth.
How TaxAkounting Helps You Stay Compliant
At TaxAkounting, we simplify the entire compliance process for businesses of all sizes:
- SECP Annual Return Filing & Financial Statements
- FBR Income Tax & Sales Tax Return Filing
- NTN, STRN & Company Registration
- Remote Bookkeeping & ERP Accounting
- Business Consultancy & Financial Compliance
Our experienced team ensures accuracy, timeliness, and complete legal compliance — so you can focus on growing your business, not managing paperwork.
Don’t Wait — File Before the Deadline
Every year, thousands of companies face unnecessary penalties for late filings. Let TaxAkounting handle your SECP and Tax Return filings before the deadline — professionally and securely.
📞 Contact: 0342-7959153
🌐 Visit: www.taxAkounting.com
📍 TaxAkounting – Simplifying Compliance for You