Anyone in Pakistan can have its own Single Member Company. (SMC) is a private company contains just one director and will take privileges of liability limitation. This is the sub-class of private company. With the advent of Single Member Company concept sole proprietorships is able to have corporate status and have a right to limit the proprietor liability. All the dealings and shares are done with single director, but it is essential for the director to nominate two persons. In case of death, one person will nominated for the director and other individual will act and do all operations of the director in case if the original director is not available as the director. Thus, director will have all the shares of his own company. While its registration in Pakistan is also easy to complete.
This has the similar advantages of the private limited companies. They provides the limited protection of liability to its members, and being a separate entity, the company finances are divided legally to the owners. In addition, in case of the death of the director of the company, there will be no effect on the company existence as employees would continue operate it. So, the connection will remain maintained after the death of director. Furthermore, minimum numbers of shareholders are required to run business.
Few steps and required documents are mentioned which are needed at the time of company registration
- Company name (to check the chosen name availability or for any objection, after the company name further process will proceed)
- Copy of Computerized National Identity card
- Memorandum and Article of Association (describes the company objectives)
- Relevant forms for registration of company
- Registration Fee
There will be no disputes than the private companies as director is not associated with others. The director shall also enjoy the benefits of tax. Much capital could be achieved from Single Member Company. And the foremost, no restrictions are applied on it; individuals can have its business in the form of industry, trade, agriculture etc. as they have number of options to form any business. Procedure is very simple for company registration.