I. Background (BG)

1. This refers to the following Important QCs in trail, blue, italic and after double line (a) 614 of 26.7.23 about Listed & Public Sector Companies Code of Conduct Guidelines (b) 515 of 9.5.21 about Updated List of Authorized Intermediaries as of May 2021

II. Updated Commentary

A. General

1. Further to KQU 3716 of 23.12.25, being an Important matter, we would inform you about Know your exemptions, compliance obligations—and the flexibilities provided by law as per SECP (Attachment 661.1) in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2. The Companies Act, 2017 prescribes exemptions for Single Member, Private, & Public Companies. Stay informed, stay compliant, and benefit from the flexibilities built into the law.

B. Exemptions - A simpler, lighter regulatory pathway for businesses.

1. Paid-Up Capital: Up to Rs. 1 Million

Exempt from:

Appointment of Auditor

Appointment of Legal Advisor

Appointment of Company Secretary

Audit & Filing of Financial Statements

2. Paid-Up Capital: Rs 1 Million to 10 Million

Exempt from:

Appointment of Legal Advisor having paid up capital upto to Rs 7.5M

Appointment of Company Secretary

Filing of Financial Statements

3. Paid-Up Capital: Above Rs. 10 Million

Exempt from:

Appointment of Company Secretary

C. Compliance - Lower Compliance, Higher Convenience -Choose AN Single Member Company today

1. Paid-Up Capital: Up to Rs 1 Million

Exempt from

Holding Annual General Meeting (AGM)

Appointment of Auditor

Appointment of Legal Advisor

Appointment of Company Secretary

Audit & Filing of Financial Statements

2. Paid-Up Capital: Rs 1 Million - 10 Million

Exempt from

Holding AGM

Appointment of Legal Advisor having paid up capital up to Rs 7.5M

Appointment of Company Secretary

Filing of Financial Statements

3. Paid-Up Capital: Above Rs 10 Million

Exempt from

Holding AGM

Appointment of Company Secretary

III. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com.