A Single Member Company (SMC) based on a category of personal company, restricted by shares, that is incorporated with one member. SMC doesn’t invite the general public to subscribe for any share of the corporate. The corporate doesn’t register any share’s within the name of 2 or additional persons to carry one or additional shares one by one or jointly, and range of members of the corporate is proscribed to one person.
Provisions of Law and Rules with reference to establishing Single Member Company:
Single Member firms Rules, 2003 deals with problems with reference to single member company.
The provisions of the Ordinance and every one the principles and rules created there below area unit applicable to SMC within the same manner as they’re applicable to a non-public company having 2 or additional members, unless prescribed otherwise.
Advantages of one Member Company:
Some of the benefits of forming SMC area unit following:
- SMC incorporates a separate legal entity from its member.
- Liability of the member is proscribed to the number of his investment.
- The existence of the corporate doesn’t stop on the death of a member.
- SMCs area unit subject to lower corporation tax.
- Single member of a SMC has complete management over however the business is operated.
- The single member might build all business choices severally and receive the complete share of distributed profits.
- Single member doesn’t ought to cope with shareholders or a board of administrators as a corporation would be needed to do.
- SMC is a smaller amount formal than a corporation.
- Ownership of a SMC is simply transferred to a different person while not abundant paper work and obliging with legal formalities.
- The transformation of sole ownership into SMC can, facilitate in documentation of economy.
Incorporation of one Member Company:
Any person or a body company might kind a SMC. All the wants for incorporation of a non-public company shall mutatis mutandis apply to a SMC. Any personal company can even be born-again into a SMC, on obliging with the relevant provisions of the Ordinance and therefore the Rules, framed there below.
Few steps and needed documents area unit mentioned below that area unit required at the time of company registration:
- Company Name / Business name
- Copy of CNIC / Passport of Director / Chief govt (passport just in case of foreign director)
- Copy of CNIC / Passport of Company Secretary
- Address of the corporate
- Capital of the corporate
- Memorandum of Association
- Articles of Association
- Power of professional person
- Appropriate Official Fee (non-refundable)
After confirmation that fee has been attributable, relevant oscilloscope (Company registration office) takes around One week for completion of latest company registration method in Islamic Republic of Pakistan. If there’s any discrepancy arises, it should take longer, thus here it’s powerfully suggested to require the services of old professionals United Nations agency will file your company registration documents and save your precious time.