There is often much confusion and misinformation (usually disseminated by the local bar stool expert) as to what type of entity a Single Member Company actually is. Let's clear it up then!
Single Member
A Single Member Private Limited Company does not, first and foremost ,mean that the company can have only one director!
A member is a shareholder or in effect a company owner. In many small companies the company members i.e. shareholders may indeed be one and the same as the company directors.
A Single Member Company is therefore no different from any other private limited company other than the fact that the entire issued share capital is held or owned by one single/sole person i.e the single member hence, the designation "single member company".
Single Member
A Single Member Private Limited Company does not, first and foremost ,mean that the company can have only one director!
A member is a shareholder or in effect a company owner. In many small companies the company members i.e. shareholders may indeed be one and the same as the company directors.
A Single Member Company is therefore no different from any other private limited company other than the fact that the entire issued share capital is held or owned by one single/sole person i.e the single member hence, the designation "single member company".
