CA CAF Company Law (CAF-7) Explained: 2026 Syllabus

CA CAF Company Law is the part of ICAP's Certificate in Accounting and Finance (CAF) stage that tests the Companies Act, 2017. It was examined as the standalone CAF-7 paper under Scheme 2021. Under Scheme 2025, it is examined inside CAF-4 Business Law Dynamics, covering incorporation, shares, directors, meetings, accounts and dividends. See the CA CAF Company Law (CAF-7) course overview.

If you've searched for "CAF-7 Company Law," you've probably found conflicting information. Some books still call it CAF-7. ICAP's latest syllabus uses that number for a different subject. And many students aren't sure whether their old pass still counts.

This guide clears that up. It explains exactly what CA CAF Company Law covers in 2026, how ICAP now examines it, and how to prepare for it properly.

At ICT Business School, we teach CA students across all stages, from PRC to CFAP. Company law is one subject where students either score well or lose marks through vague answers. The difference usually comes down to method, not intelligence.

If you're new to the qualification, start with our complete guide to Chartered Accountancy in Pakistan. If you're already at CAF level, browse our CA, ACCA, CMA and CIA courses to see how company law connects with the rest of your CAF papers.

Let's start with the basics.

CA CAF Company Law is the study of how companies are formed, managed, and regulated in Pakistan under the Companies Act, 2017. It teaches CA students the legal rules behind incorporation, share capital, directors, general meetings, resolutions, statutory records, financial statements and dividends. The regulator behind these rules is the Securities and Exchange Commission of Pakistan (SECP).

Under ICAP's 2021 scheme, this subject was a standalone paper called CAF-7 Company Law. That older syllabus covered limited and unlimited liability companies, including incorporation, management, meetings, accounts and winding up, with 110–130 teaching hours.

Accountants don't just prepare numbers. They work inside a legal framework. Every set of financial statements, every dividend, every board meeting and every share issue must comply with the Companies Act, 2017.

Think of it this way. Accounting tells you what the numbers are. Company law tells you who can approve them, when they must be filed, and what happens if rules are broken.

That's why company law knowledge supports your later work in audit, corporate reporting, and corporate governance.

No. Under ICAP's Education and Training Scheme 2025, CAF-7 is now "Business Insights and Analysis." Company law has moved into CAF-4 Business Law Dynamics, which combines contract law, other business laws, and the Companies Act, 2017 in one paper. The new scheme became effective on 16 January 2026.

ICAP's Scheme 2025 CAF subjects are Financial Accounting and Reporting, Taxation Principles and Compliance, Data Systems and Risks, Business Law Dynamics, Management Accounting, Corporate Reporting, Business Insights and Analysis, and Audit and Assurance Essentials. Institute of Chartered Accountants of Pakistan

This mapping follows ICAP's official paper-wise credit table for Scheme 2025.

You keep your credit. You only need to pass the business law portion of CAF-4 Business Law Dynamics. The same works in reverse: if you passed old CAF-4 Business Law, you only need the company law portion.

There's also a progression benefit. ICAP confirms that a student who passed Business Law under Scheme 2021 plus another Group A paper under Scheme 2025 meets the two-paper requirement to attempt CAF Group B. icap

Important Note: Your remaining time limit may still be calculated from your first CAF attempt under the old scheme. Check your status in your ICAP student login before planning your next attempt.

You'll never sit a separate company law paper. You'll study company law as part of CAF-4, which sits in CAF Group A under the new scheme. For a full breakdown of Group A papers, read our guide to ICAP CAF Group A subjects and exam structure.

Company law appears twice in the CA qualification: once at CAF (foundation-level application) and again at CFAP (advanced corporate law and governance).

Full-time students complete PRC (3 papers), CAF (8 papers) and hands-on courses before starting training, then CFAP (6 papers), two integrated modules and the Strategic Case Study.

So the effort you put into company law at CAF pays off three more times later.

Any student registered for ICAP's CAF stage studies company law as part of CAF-4. Entry depends on your base qualification. Students with 60% or more in HSSC/A-Levels register after PRC. Those with 50–60% must pass QAT first. Relevant associate degree holders with 45% can enter CAF directly.

This table reflects ICAP's published registration requirements for full-time students under Scheme 2025.

Four-year degree holders usually follow the Graduate Conversion Course (GCC) instead of CAF. GCC-1 Business Concept and Environment includes the relevant parts of CAF-4 Business Law Dynamics. For the full eligibility picture, read our CA eligibility in Pakistan guide and our step-by-step ICAP registration process.

Who is this subject a good fit for?

The company law syllabus now sits in areas D, E and F of CAF-4 Business Law Dynamics. These three areas cover incorporation and shares, management and administration, and meetings, directors, chief executive, accounts and dividends. Together they carry roughly 42–57% of the paper's marks and 63–78 teaching hours.

Source: ICAP CAF Syllabus (Education Scheme 2025), CAF-4 Business Law Dynamics grid.

Section references are taken from ICAP's Specific Examinable Knowledge Reference for CAF-4.

This is where every company's life starts. You'll learn:

This area tests ongoing compliance. Key topics include:

This is the largest company law area, at 20–25% of the paper. It covers:

Winding up was part of the old CAF-7 syllabus. It doesn't appear in the CAF-4 Scheme 2025 section references. Advanced corporate law topics are left for CFAP-2 Corporate Laws and Governance.

Warning: Old CAF-7 notes may include topics that are no longer examinable at CAF. Always check your study material against ICAP's current syllabus.

Since company law now shares a paper, you'll also study:

This section explains the concepts that appear most often in CAF company law questions. Use it as a revision reference.

A company is a separate legal person from its members. It can own property, enter contracts, sue and be sued in its own name. Shareholders' liability is usually limited to any unpaid amount on their shares.

Example: Sara owns 100% of Sara Textiles (SMC-Private) Limited. If the company can't pay its supplier, the supplier generally can't recover the debt from Sara's personal house. The company owes the money, not Sara.

Courts can "lift the corporate veil" in cases of fraud or misuse, but that's an exception, not the rule.

Companies can also be classified by liability: limited by shares, limited by guarantee, or unlimited.

Exam tip: When a scenario mentions the number of members or directors, check it against these minimums immediately. It's often the hidden issue in the question.

Simple analogy: The memorandum is the company's national identity card. The articles are its house rules.

Common mistake: Students often use "transfer" and "transmission" interchangeably. They are legally different, and examiners penalise that confusion.

Directors manage the company on behalf of its members and owe duties to the company. They must act in good faith, in the company's best interests, with due care and skill, and must disclose any personal interest in company contracts.

Key rules students must know:

General meetings generally require at least 21 days' notice.

Example: A company's financial year ends on 30 June 2026. It must hold its AGM within 120 days, which means by 28 October 2026.

Every company must keep proper books of account and prepare financial statements that give a true and fair view. Dividends can only be paid out of profits, never out of capital.

This area overlaps with CAF-6 Corporate Reporting and CAF-8 Audit. Learning it well in company law makes those papers easier.

Company law is examined inside the CAF-4 Business Law Dynamics paper, which is out of 100 marks with a 50% pass mark. ICAP holds CAF exams twice a year, in spring and autumn. You can attempt up to four CAF papers per sitting, and must pass two Group A papers before attempting Group B.

ICAP's FAQs set these rules: CAF and GCC exams are held semi-annually, students can take up to four CAF papers per sitting, and Group B requires two Group A passes. Changes in corporate and non-fiscal laws become examinable six months from their publication by the issuing authority.

Any topic newly added to the syllabus is tested at level 1 in its first attempt, whatever level the syllabus shows.

Why this matters: Most company law outcomes are tested at T2. That means a single company law topic, such as directors or meetings, can carry up to 20 marks. You can't skip any of them.

ICAP allows permissible books in certain papers. Rules can change, so check paragraph 7(3) of Directive 1.01 on the ICAP website before your exam. Don't rely on old seniors' advice for this.

For exam dates, see ICAP's exam schedule page.

CAF company law is moderately difficult. It isn't calculation-heavy, but it demands precise knowledge of the Companies Act, 2017 and correct legal terminology. Students fail it mainly by writing general answers without section references or by memorising without practising scenario-based questions.

ICAP is clear about terminology. Its FAQs note that some law answers require exact legal terms, giving the example that "contract" and "agreement" can't be treated as synonyms in a law paper.

For a wider look at why students struggle, read why students fail CA and ACCA exams.

The best way to prepare for CAF company law is to follow the company's life cycle: formation, shares, administration, meetings, directors, then accounts and dividends. Study each area with its sections, then practise past paper questions on it within the same week. Finish with timed mock exams.

Tip: Run this plan in parallel with Contract Act study. Most students cover Contract Act in the first half of the term and company law in the second, then revise both together.

Use the IRAC method: Issue, Rule, Application, Conclusion. Identify the legal issue, state the relevant Companies Act provision, apply it to the facts in the question, and give a clear conclusion. This structure matches how ICAP marking plans usually award marks.

Question: Three friends formed Crescent Foods (Private) Limited in 2021. Over five years they added family and business partners as members. The company now has 58 members, none of whom are employees. The directors ask whether this affects the company's status. Advise them.

Answer (IRAC):

Notice how every line connects the facts to the law. That's what earns marks.

Want structured guidance on this? Explore the CA CAF Company Law course or book a seat in the next batch.

ICAP's own study text is the primary resource for CAF company law. Pair it with the Companies Act, 2017 bare text, ICAP past papers, suggested answers, marking plans and examiner comments. Third-party notes help with revision, but always cross-check them against ICAP's current syllabus.

ICAP makes study material available online in its secured student area, and hardbound copies can be obtained from designated publishers. icap

Students choosing between CA and ACCA often compare their law papers.

Neither is "better" in general. CA's company law is more useful if you'll work in Pakistani corporate compliance. ACCA's law paper suits students targeting international mobility.

If you're considering ACCA, see our ACCA Corporate and Business Law course. For a full comparison, read CA vs ACCA.

The cost has two parts: ICAP's fees and your tuition fees. ICAP charges registration and per-paper exam fees, published on its fee page. Tuition fees vary by institute, batch type and whether you study online or on campus.

Because ICAP revises fees periodically, check its official fee schedule before registering.

For a full cost breakdown, read our CA fee structure in Pakistan 2026 guide.

Financial support: ICAP offers the Edhi CA Talent Scholarship, the ICAP Students Endowment Fund and a Students' Financial Support Program. Eligible students may also receive up to 70% of ICAP dues through the Ihsan Trust interest-free loan facility.

Company law knowledge is directly used in audit, company secretarial, corporate compliance, and corporate advisory roles. Accountants who understand the Companies Act, 2017 can guide boards on meetings, filings, dividends and director obligations. This makes them more valuable than accountants who only prepare numbers.

CA also carries academic recognition. HEC recognises Chartered Accountancy as equivalent to an M.Com involving 16 years of schooling. CAF-verified students can also apply to BS Accounting and Finance programmes, with possible exemptions of up to 60 credit hours depending on the university.

Salaries depend on experience, firm and city, so avoid anyone promising fixed figures. For current career data, read our CA scope in Pakistan, CA salary in Pakistan and top CA jobs in Pakistan guides.

The biggest 2026 update is structural: company law is now examined inside CAF-4 Business Law Dynamics. Beyond that, the subject is moving toward practical compliance, digital filing, governance and anti-money laundering awareness, reflecting how SECP and businesses now operate.

Recommendation: Review this article's syllabus section every six months, since ICAP updates syllabi by attempt.

Use this before you start preparing:

Company law is taught best by people who combine accounting knowledge with legal practice. At ICT Business School, CA law subjects are led under the guidance of faculty with both professional accounting and legal backgrounds, including our founder, a Chartered Accountant (ICAEW) and Advocate High Court.

Here's what CA students get with us:

Ask our admissions team about current online and on-campus batch options. Enroll Now or read more about how admission works.

Looking for a comparison of options? Read our guides to the best CA institute in Islamabad and the best CA institute in Rawalpindi.

No. Under ICAP's Education and Training Scheme 2025, effective 16 January 2026, CAF-7 is Business Insights and Analysis. Company law is now examined inside CAF-4 Business Law Dynamics, which combines the old CAF-4 Business Law and CAF-7 Company Law into one paper.

No. ICAP's transition rules say a student who passed either Business Law or Company Law under Scheme 2021 only needs to pass the relevant remaining portion of CAF-4 Business Law Dynamics.

The CAF syllabus covers selected sections on incorporation (sections 9 to 43), issuance of shares (58 to 62), charges (100 to 112), meetings (131 to 152), directors and chief executive (153 to 196), and accounts and dividends (220 to 243), plus Table A of the First Schedule.

The passing mark is 50% in each subject. Company law is not passed separately. It is part of CAF-4 Business Law Dynamics, so you need 50% in that paper overall.

ICAP's syllabus grid allocates about 63 to 78 teaching hours to the three Companies Act areas of CAF-4. Most students cover company law in 10 to 12 weeks alongside contract law, followed by 3 to 4 weeks of past paper revision.

Yes, in some cases. ICAP grants CAF-4 Business Law Dynamics exemption to candidates who passed all PIPFA or all CIMA-UK papers, and to eligible graduates of specified degree programmes that meet ICAP's syllabus-match and marks criteria. ACCA-qualified candidates do not receive a CAF-4 exemption.

It is manageable but strict. The paper rewards precise, section-based answers and correct legal terms. Students who only memorise usually struggle, while students who practise past paper scenarios under timed conditions generally find it much easier to pass.

Not in the same way. ACCA's Corporate and Business Law paper is not built around Pakistan's Companies Act, 2017. If you need Pakistan-specific corporate compliance knowledge, CA's company law content is directly aligned with local practice.

ICAP publishes the syllabus, study material, past papers, suggested answers, marking plans and examiner comments on its website. Hardbound copies of study texts are available through ICAP's designated publishers.

CA CAF Company Law is no longer a standalone CAF-7 paper, but it matters as much as ever. Under ICAP's Scheme 2025, it forms roughly half of CAF-4 Business Law Dynamics and lays the foundation for CAF-6, CAF-8 and CFAP-2.

Key recommendation: Study from the current Scheme 2025 syllabus, learn the Companies Act by the company's life cycle, and answer every question with the IRAC structure. If you already have credit for old CAF-7 or CAF-4, confirm your remaining portion before you start.

Next step: Download ICAP's CAF-4 syllabus, collect the last few attempts' past papers, and set up your 12-week plan.

If you want expert guidance, structured classes and exam-focused practice, ICT Business School can help. Book a Seat in our next CA CAF batch today, or learn more about ICT Business School.