About Single Member Company

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 Company Registration - Law and Procedure in Pakistan

Single Member Company Registration - Law and Procedure in Pakistan

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.