Single Member Company Registration in Pakistan (SMC Pvt Ltd)

A Single Member Company (SMC) is a class of private company, limited by shares, which is incorporated with one member. SMC does not invite the public to subscribe for any share of the company. The company does not register any share(s) in the name of two or more persons to hold one or more shares individually or jointly; and Number of members of the company is limited to a single person.

Provisions of Law and Rules Relating to establishing a Single Member Company:
Single Member Companies Rules, 2003 deals with issues relating to single member company.

The provisions of the Ordinance and all the rules and regulations made thereunder are applicable to SMC in the same manner as they are applicable to a private limited company having two or more members, unless prescribed otherwise.

Advantages of a Single Member Company:

  1. SMC has a separate legal entity from its member;
  2. Liability of the member is limited to the amount of his investment;
  3. The existence of the company does not cease on the death of a member;
  4. SMCs are subject to lower corporation tax;
  5. Single member of a SMC has complete control over how the business is operated.
  6. The single member may make all business decisions independently and receive the full share of distributed profits;
  7. Single member does not have to deal with shareholders or a board of directors as a company would be required to do;
  8. SMC is less formal than a corporation;
  9. Ownership of a SMC can be easily transferred to another person without much paper work and complying with legal formalities; and
  10. The transformation of sole proprietorship into SMC will, help in documentation of economy.

 Documents Required for Application for Incorporation

  1.  3 Names of Company Priority Wise.
  2. Scan CNIC of Shareholder, Directors, CEO and CNIC of Nomination on behalf of shareholder in Case of Single Member Company.
  3. Cell Number of Directors/ Shareholders (Must Be registered at their own name)
  4. Email Address of Directors/ Share Holders
  5. Office Address

Time Required for SMC Pvt Ltd Company Registration

  • 7-10 Working days

Post Incorporation Documents

  • SECP Certificate of Incorporation
  • Directors NTN Certificate
  • Company NTN Certificate
  • Form-II
  • Memorandum of Association
  • Article of Association

After the Registration of company bank account will open and the document required for opening of bank account are as under.

  • SECP Certificate of Incorporation
  • Directors NTN Certificate
  • Company NTN Certificate
  • Form-II
  • Memorandum of Association
  • Article of Association
  • Company Letter Head
  • Company Stamp

Filling of SECP After Incorporation:

After the incorporation of Company  Some Filling are important to for SECP.

The Detail of Filling Return are as under.

Subscription Money :

Companies are required to receive share subscription money from each director in the ratio of share taken or subscribed by him as mentioned and promised in mentioned in the memorandum of association.  Such money must be deposited in the bank account of the company, within thirty (30) days of registration of the company.

As per section 17 (3) of Companies Act  Certificate  of Receipt of Subscription Money issued  by a Cost and Management Accountant or Chartered Accountant verifying the fact that  subscription money has been deposited in the bank account of the company must be submitted  with 45 days of registration of a company.