A single member company is a type of private limited company that has only one owner, who also serves as the director of the company. A private limited company, on the other hand, can have multiple owners and directors.
One key difference between single member companies and private limited companies is that single member companies do not require a separate Board of Directors, as the owner serves as both the owner and the director of the company. In a private limited company, the owners are referred to as shareholders, and the company must have a board of directors that is responsible for managing the company. Another difference is that single member companies may be less suitable for businesses that plan to seek investment or venture capital, as they may be seen as less attractive to investors due to the lack of a separate board of directors and the potential for conflicts of interest. Private limited companies, on the other hand, are more common for businesses seeking investment, as they have a clear separation of ownership and management, and are seen as more professional and stable.