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Introduction

Accelerate Prosperity is seeking detailed profiles and quotations from the reputed legal firms (only registered legal firms and not individual lawyers/ counsels) in Pakistan to incorporate a new for profit company in Pakistan that also secures the status of Non-Banking Finance Company with the license of undertaking private equity and venture capital activities.

Period of Assignment

15^th Nov 2023 to 30^th April 2024

Level of Effort

30 days, spread over the abovementioned timelines.

Reporting Line

Executive Director Accelerate Prosperity & Country Director for Accelerate Prosperity Pakistan

Background

Accelerate Prosperity (AP) has a mandate, as part of new global initiative of the Aga Khan Development Network (AKDN) in Central and South Asia, to catalyse entrepreneurship within AKDN’s main area development programs, where economic opportunities remain insufficient. In this regard, AP has been providing pre-financing technical assistance and patient repayable financing to select start-ups, small and growing businesses in Pakistan.

AP has recently completed legal assessment and tax advisory in order to find the best fit legal company structure for its intended activities and operations. As noted above, this legal structure is a for profit non-banking finance company (NBFC) with a Private Equity and Venture Capital license. The legal assessment along with key recommendations can be shared upon request.

Objective of the Assignment

To incorporate Accelerate Prosperity as the for-profit non-banking finance company (NBFC) in Pakistan with the Private Equity and Venture Capital license (PE & VC).

Specific Tasks/ Activities

• Assess and recommend the most tax convenient location for incorporating the company.
• Assess regulatory provisions around the ability of the company to receive grants and recommend the most tax convenient channel for the flow of grants from the source to Accelerate Prosperity.
• Recommend a tax convenient and regulatory compliant method of transferring Accelerate Prosperity’s existing endowment and revolving funds under AKRSP to the new company.
• Prepare memorandum and articles of association for the company.
• Assist and advice the intended promoter of the company to prepare all the required documents for incorporation.
• Incorporate the company in two phases:
  • Phase 1: Incorporate the for profit LLC (by 1^st December 2023).
  • Phase 2: Applying and securing the license of an NBFC PE and VC (by 30^th April 2024).
• Advice the founders/ promoters on any other relevant/ applicable matter.

Deliverables

• A memo recommending the most tax convenient location for incorporating the company.
• A memo recommending the most tax convenient and complaint channel for the flow of the intended grants to the company.
• A memo recommending the most tax convenient and compliant (from the regulatory standpoint) method of transferring Accelerate Prosperity’s existing endowment and revolving fund under AKRSP to the new company.
• Draft and final versions of memorandum and articles of associations of the company.
• Drafts and final versions of other documents required from the founder/ promoter of the company for incorporation.
• SECP registration certificate of the for profit LLC (by 1^st December 2023).
• License certificate of the NBFC PE and VC for the company (by 30^th April 2024).

Eligibility Requirement

• A reputed legal firm (registered institution) with more than 15 years of experience will be preferred. Firms with experience in the recent past undertaking similar assignments will be preferred.
• Prior experience with the Aga Khan Development Network (AKDN) and/or similar development networks, especially in undertaking similar legal assessments for start-up incubators, accelerators or investment funds, will be preferred.
• Firms with international recognition and/or alliances will be preferred.

Deadline for Proposal

All interested firms should submit their institutional profiles along with gross financial quotation in a sealed envelope by 10^th November 2023 (17:00 hours) to the following address (email and post). The financial quote should include the entire cost of all deliverable including consulting fee, the required domestic travel, per diems etc.:

• Email: nadeem.ullah@akdn.org
• Post Address: Nadeem Ullah, c/o Accelerate Prosperity, Professional Development Centre North (PDCN), Konodass Gilgit.
• For queries: Contact on the abovementioned email address.