In Pakistan, a Private Limited Company is required to file a subscription money return with the Securities and Exchange Commission (SECP) whenever it issues new shares to shareholders. The subscription money return must be filed within 30 days of the issue of the shares and must include information about the number of shares issued, the subscription price, and the names and addresses of the shareholders who have subscribed for the shares.
Failure to file the subscription money return or to disclose accurate and complete information can result in fines and penalties for the company and its directors. The specific penalties for not filing a subscription money return in Pakistan are set out in the Companies Act, 2017 and the relevant regulations.
Under the Companies Act, 2017, the SECP has the power to impose fines on companies and their directors for failure to comply with the requirement to file a subscription money return or to disclose accurate and complete information. The amount of the fine may vary depending on the severity of the violation and the circumstances of the case.
It’s worth noting that failure to file a subscription money return or to disclose accurate and complete information may also result in reputational damage for the company and may make it more difficult for the company to do business or to raise capital. It is important for companies in Pakistan to comply with the requirement to file a subscription money return and to disclose accurate and complete information in order to protect their reputation and to avoid fines and penalties.