REITs is an alternative asset class which adds depth to the capital market and provide transparency to the real estate sector in the form of comprehensive disclosures and accountability through a trust mechanism engrained in the REIT Regulations. REITs provide an additional product choice to retail investors and added flexibility to investment managers.
Starting a REIT Management Company includes getting permission to form an NBFC in case it is a new company and later on obtaining the license of REIT Management Company from SECP.
The flow chart for the process flow can be viewed below:
Incorporation of RMC and Grant of License
The REIT Management Company (the “RMC”) is a Non-Banking Finance Company (“NBFC”) licensed by
the Securities and Exchange Commission of Pakistan (“SECP”) to carry out REIT Management Services in
accordance with Part VIII-A of the Companies Ordinance, 1984 (the “Ordinance”) and the REIT Regulations,
2015. RMC is to be incorporated under the Ordinance read with the provisions of the NBFC Rules, 2003.
Following is the suggested chronological methodology for Incorporation of a RMC.
Application to Specialized Companies Division, SECP Headquarter Islamabad for
obtaining permission to form a NBFC along with the following documents:
- Form I of NBFC Rules 2003 along with all relevant supporting documents
- Fee as per Schedule III of REIT Regulations 2015
- Compliance to Fit and Proper of REIT Regulations 2015, along with all relevant
Incorporation of NBFC as public limited company at Company Registration Office as per the existing procedures, forms and Fees for further information please see here
Application to SECP HQ for Grant of License for RMC to carry out REIT Management Services
- Form II of NBFC Rules 2003 along with all relevant supporting documents
- Fee with Form II (as per Schedule III of REIT Regulations 2015)
The information contained on this page is for general guidance on formation of a REIT Management Company (“RMC”).
Accordingly, the information on this page is provided with the understanding that the Securities and Exchange Commission of Pakistan (the “Commission”) is not herein engaged in rendering legal, or otherwise professional advice and services. All information on this page is provided “as is”, with no assurance of any kind, express or implied, including, but not limited to assurance of providing a permission to form a RMC and a license to carry out REIT Management Services. In no event will the Commission or its officers be liable to you or anyone else for any decision made or action taken in reliance on the information contained on this page or for any consequential damage