Now minimum number of director required to establish a company has reduced to one director. Hence an individual can form a company and enjoy the advantage of limited liability without joining hands with anyone and without sharing profit and ownership of the corporate entity.
Through the enforcement SMC Rules, 2003 the concept of single member company was introduced in Pakistan. Before the commencement of Single Member Companies Rules, 2003, a single individual was not allowed to solely establish a business in a company form. Sole proprietorship is ancient form of business organization. It is as old as civilization. Most of businesses around us are managed, owned and controlled by single individuals.
For Detail understanding the concept, features and advantages of Single Member Company.