Frequently Asked Questions on Single Member Company in Pakistan:
Q. Can Single Member Company be converted into private company?
A. Yes, a single member company can be converted into a private company on increase of the number of its members/directors to more than one. A private company having two or more members can become a single member company by passing a special resolution for change of its status and by making necessary alteration in its articles and obtaining approval from the Securities & Exchange Commission of Pakistan.
Q. Can single member company issue shares to public?
A. No, single member company cannot issue invitation to the public to subscribe for any share of the company.
Q. Can sole director in single member company act as secretary?
A. Sole director cannot be the secretary in the Single Member Company.
Q. I want to wind up single member company what procedure to follow?
A. The company shall follow, in case of its winding up, the relevant provisions of the Companies Ordinance, 1984.
Q. Is it mandatory in single member company to appoint nominee director?
A. The single member shall nominate two individuals, one of whom shall become nominee director in case of death of single member and the other shall become alternate nominee director to work as nominee director in case of non-availability of the nominee director.
Q. What is the pattern and style of the name of a single member company?
A. “XYZ (SMC-Private) Limited” is the pattern and style of the name of a single member company.
Q. Can single member company increase its share capital?
A. Yes, single member company can increase its share capital after complying with the requirements of law.
Q. Can one person be the sole director in a non-profit company incorporated under section 42 of the Company law in Pakistan?
A. Non-profit companies are formed under section 42 of the Companies Ordinance, 1984 and require having at least three directors.
Q. Do single member companies have to keep accounting records?
A. Yes. Single member companies must keep proper accounting records according to law and to file the audited accounts with Securities & Exchange Commission of Pakistan if the paid-up capital is 7.5 million or more.
Q. Can foreigner incorporate a single member company under company’s law in Pakistan?
A. Yes, if he is resident of Pakistan.
AMLAW can advice you on registration of Single-Member Company and other related matters to individuals, firms, companies both local and foreign. You can contact AMLAW for detailed consultancy and advice.