A Single Member Company (SMC) in Pakistan is a type of private company that has only one shareholder. The concept of a Single Member Company was introduced in Pakistan through the Companies Ordinance, 1984, and has been retained under the Companies Act, 2017.

Key features of a Single Member Company in Pakistan include:

1. Single Shareholder:

As the name suggests, an SMC can have only one shareholder. This is in contrast to traditional private companies, which typically require at least two shareholders.

2. Limited Liability:

Like other private companies, a Single Member Company offers limited liability protection to its sole shareholder. This means that the shareholder’s personal assets are generally protected from the company’s debts and liabilities.

3. Separate Legal Entity:

A Single Member Company is considered a separate legal entity from its shareholder. It can enter into contracts, own property, and sue or be sued in its own name.

4. Memorandum of Association (MOA) and Articles of Association (AOA):

SMC is required to have a Memorandum of Association and Articles of Association that outline the company’s objectives, rules, and regulations. These documents are submitted during the registration process.

5. Directorship:

While SMC may have a single shareholder, it is required to have at least one director. The shareholder can also be the sole director of the company.

6. Registration with the Securities and Exchange Commission of Pakistan (SECP):

Like other companies, an SMC needs to be registered with the SECP. The registration process involves submitting necessary documents, including the MOA and AOA, and paying the prescribed fees.

7. Annual Compliance:

Single Member Companies are required to comply with annual filing requirements, such as filing annual financial statements and other relevant documents, to ensure ongoing compliance with the Companies Act.

It’s important to note that laws and regulations may evolve, and there could be updates or changes to the legal framework governing Single Member Companies. Therefore, for the most accurate and up-to-date information, it is recommended to consult with legal professionals or the relevant authorities, such as the SECP.

Global Law Company provides professional assistance and services for the registration of Single Member Companies (SMCs) in Pakistan. Here’s an overview of the registration process for a Single Member Company with Global Law Company:

1. Name Reservation:

• Choose a unique and distinctive name for the Single Member Company.
• Submit the chosen name for reservation to the Securities and Exchange Commission of Pakistan (SECP).

2. Drafting of Documents:

• Prepare the necessary documentation, including the Memorandum of Association (MOA) and Articles of Association (AOA).
• These documents outline the company’s objectives, rules, and regulations.

3. Obtaining Digital Signature Certificates (DSCs):

• Assist in obtaining Digital Signature Certificates (DSCs) for secure digital signing of documents.

4. Fee Payment and Online Submission:

• Guide through the payment of fees to the SECP and the online submission of relevant documents through the e-Services portal.

5. Verification and Approval:

• Monitor the application’s progress and liaise with the SECP to ensure a smooth verification and approval process.

6. Post-Incorporation Requirements:

• Assist in fulfilling post-incorporation requirements, such as opening a bank account, obtaining the National Tax Number (NTN), and registering with relevant authorities.

Global Law Company’s team of professionals is well-versed in the legal and regulatory framework governing Single Member Companies in Pakistan. We stay updated with any changes in laws and regulations, ensuring that clients are always in compliance.

By choosing Global Law Company for Single Member Company registration, clients can benefit from efficient and professional services, making the registration process hassle-free. The focus is on ensuring that clients meet their legal and regulatory obligations, allowing them to concentrate on core business operations. It is advisable to consult with Global Law Company for the most accurate and current information tailored to your specific business needs.

Feel free to reach out to Global Law Company for further assistance or to schedule a consultation.