(a) Licence for a New Lubricants Marketing Company
Obtaining a licence for establishing a new Lubricants Marketing Company (LMC) in Pakistan involves several critical steps and compliance with regulatory requirements. Below is a comprehensive guide to assist prospective applicants through the process.
1. Application Form and Necessary Attachments
The application for the grant of a licence to a new LMC must be submitted in the format set out in Part L of Schedule-I as per the relevant rules. The following documents are required:
- Certificate of Incorporation: The company must be incorporated under the Companies Ordinance, 1984, and a certified copy of the Memorandum and Articles of Association must be provided.
- Investment Plan: A detailed investment plan over a period of three years, specifying the locations of storage facilities, warehouses, and distribution outlets, along with their respective capacities for each year.
- Affidavit: An affidavit confirming that none of the sponsors, directors, or their relatives are involved in any criminal case, bank default, or tax evasion. Additionally, it must declare that no case is pending in any national or international court against the company or its directors/sponsors.
2. Financial Requirements
- Equity Requirement: A minimum investment of Rs. 20 million is mandatory for establishing the company. A certificate from a bank or financial institution must confirm the company’s financial capability to undertake this investment.
- Letter of Support: A letter of support from a bank or financial institution certifying the company’s financial soundness and the ability to sustain the required investment.
3. Procedural Steps
- Submission of Documents: All requisite documents, including the application form, investment plan, affidavit, and financial documents, must be submitted to the Oil and Gas Regulatory Authority (OGRA).
- Initial Review: OGRA will conduct a preliminary review of the submitted documents to ensure completeness and compliance with regulatory standards.
- Site Verification: Upon successful initial review, OGRA will arrange for a site inspection to verify the proposed locations for storage, warehousing, and distribution facilities.
- Grant of Licence: Once the site verification is satisfactorily completed, OGRA will issue a licence for a period of three years, during which the company must complete the infrastructure development as per the submitted plan.
4. Commencement of Operations
After completing the infrastructure as per the approved plan and subsequent inspection by OGRA’s appointed third-party inspector, the company will receive written permission from OGRA to commence its marketing operations.
(b) Licence for an Existing Lubricants Marketing Company
For existing lubricants marketing companies, obtaining a licence involves a streamlined yet thorough process. The application must comply with the guidelines outlined in Part M of Schedule-I.
1. Application Form and Documentation
The application for an existing LMC must include:
- Company Profile: Detailed information about the company, including the name, address, and a list of directors with their nationalities and shareholdings.
- Operational Plan: A comprehensive operational plan detailing the existing infrastructure, including storage capacities, warehousing, and distribution networks.
- Affidavit: Similar to new applications, an affidavit confirming no involvement in criminal activities, bank defaults, or tax evasion by the sponsors, directors, or their relatives. It should also confirm that no legal cases are pending against the company or its directors/sponsors.
2. Financial and Compliance Requirements
- Sustained Investment: Proof of sustained investment and financial stability through bank statements or letters of support from financial institutions.
- Compliance Records: Documentation demonstrating compliance with existing regulations and any previously issued directives by OGRA.
3. Renewal and Continuation
- Review of Operations: OGRA will conduct a comprehensive review of the company’s operations, including site inspections and verification of compliance with regulatory standards.
- Renewal of Licence: Upon satisfactory review, OGRA will renew the licence, allowing the company to continue its operations. The renewal is subject to periodic reviews and compliance with updated regulatory requirements.
