Inactive company status
Keep a dormant company, or one holding an asset or IP, alive at low cost instead of closing it.
Overview
Inactive company status keeps a company alive without full compliance costs, for a future project or to hold an asset or intellectual property.
Why it matters
A company that is not doing business can apply for inactive status, which reduces its filing duties while keeping it alive for future use. It is often better than closure when you plan to restart.
Who needs this
- Companies with no business or significant transactions for two years
- Holding companies for property or IP
- Companies formed for a future project
How it works
Who does each step, and how long it usually takes once documents are complete.
- 1EligibilityTAXWORK
Transactions checked against the 'significant accounting transaction' test.
1 day - 2ApplicationTAXWORK
Filed with SECP.
1–2 days - 3CertificateSECP
Inactive status certificate issued.
Usually 2–4 weeks - 4Annual upkeepTAXWORK
Specified documents and annual fee to keep the status.
Yearly
Documents we need
Tick what you already have, then send the list to us.
Which company type fits you?
Under the Companies Act 2017 (sections 2(49), 14, 42, 154 and 247) and the LLP Act 2017.
| Type | Members | Directors | Liability | Auditor | Best for |
|---|---|---|---|---|---|
| Single member company | 1 | 1 + nominee | Limited by shares | CMA or CA if paid-up capital under Rs 3M | Solo founders |
| Private limited | 2 to 50 | 2 | Limited by shares | CMA or CA if paid-up capital under Rs 3M | Startups and family businesses |
| Public (unlisted) | 3 or more | 3 | Limited by shares | Chartered accountant | Raising capital from many investors |
| Listed company | 3 or more | 7 | Limited by shares | Chartered accountant | Public share trading on PSX |
| Limited by guarantee | Members | 2 or 3 | Up to the guarantee | As per company type | Associations and clubs |
| Section 42 NPO | 3 or more | As per type | Licensed, no profit distribution | Chartered accountant | Charities and foundations |
| LLP | 2 or more partners | Designated partners | Limited for partners | As required | Professional firms, joint ventures |
| Foreign branch / liaison | Foreign parent | Authorised person | Parent's liability | Chartered accountant | Foreign companies entering Pakistan |
What you receive
- Inactive status certificate
- Annual upkeep plan
Deadlines, risks and penalties
- Starting business again requires an application to become active
Mistakes we fix, and what our fee covers
Common mistakes we fix
- Annual return (Form A / Form 29) filed late, which brings SECP penalties
- Change of directors, shares or address not reported to SECP
- Company NTN and tax return not filed even when there is no income
- Beneficial ownership register not kept up to date
Included in our fee
- Name check, documents and filings on SECP eServices
- Board and shareholder resolutions drafted for you
- Company NTN and FBR profile set up or updated
- A compliance calendar for the year ahead
Law and references
The sections and rules this service is based on.
- Companies Act 2017, s.424
- Seventh Schedule – annual fee
Questions
How long does it take?
About 3–5 weeks. Step by step: Eligibility (1 day), Application (1–2 days), Certificate (Usually 2–4 weeks), Annual upkeep (Yearly).
What does it cost?
We give a fixed quote after reviewing your case. Government fees are extra where they apply.
What happens if I miss a deadline?
Starting business again requires an application to become active.
What counts as significant?
Anything other than statutory payments, share allotments to meet the law, and office and record upkeep.
What filings are still required?
Reduced filings still apply. We tell you exactly what is due each year.
Can it become active again?
Yes. The company can apply to resume business when ready.
Why clients choose TAXWORK
Individuals, businesses and companies across Pakistan and overseas.
Rawalpindi/Islamabad, Sialkot and Karachi (with Raza Siddiqui & Co., Chartered Accountants).
You get the scope and a fixed fee in writing before any work starts.
Progress updates, and a copy of everything we file or submit for you.
Keep reading
Related guides
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View service →Ready to get inactive company status done?
Send your documents on WhatsApp or book a meeting. A consultant confirms the scope and a fixed fee before any work starts.