1. What is SECP Authorized Capital Fee?

The SECP (Securities and Exchange Commission of Pakistan) authorized capital fee is a government charge levied on companies increasing their authorized capital. The fee is calculated at PKR 100 for every PKR 100,000 or part thereof of the increased amount.

2. How Does the Calculator Work?

The calculator uses the SECP fee structure:

Where:

• Increased Capital — The amount of authorized capital increase in PKR
• ceil() — Round up to the nearest whole number

Explanation: The fee is calculated per PKR 100,000 increment, with any partial increment rounded up to the next whole number.

3. Importance of Fee Calculation

Details: Accurate fee calculation is essential for companies planning to increase their authorized capital to ensure compliance with SECP regulations and proper budgeting for regulatory costs.

4. Using the Calculator

Tips: Enter the authorized capital increase amount in Pakistani Rupees (PKR). The amount must be a positive value. The calculator will automatically compute the applicable SECP fee.

5. Frequently Asked Questions (FAQ)

Q1: What is authorized capital?
A: Authorized capital is the maximum amount of share capital that a company is authorized to issue to shareholders as per its memorandum of association.

Q2: When is this fee payable?
A: This fee is payable to SECP when a company formally increases its authorized capital through the appropriate regulatory process.

Q3: Are there any additional charges?
A: There may be additional processing fees or charges depending on the company type and specific circumstances. Consult with SECP or a corporate lawyer for complete fee details.

Q4: How often can a company increase authorized capital?
A: A company can increase its authorized capital as needed, subject to shareholder approval and compliance with SECP regulations.

Q5: Is this fee tax deductible?
A: Consult with a tax professional, but typically such regulatory fees are considered business expenses and may be deductible for tax purposes.