Single Member Company Registration in Pakistan

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:

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

Incorporation of a Single Member Company:

Any person or a body corporate may form a SMC. All the requirements for incorporation of a private limited company shall mutatis mutandis apply to a SMC.

Any private company can also be converted into a SMC, on complying with the relevant provisions of the Ordinance and the Rules, framed thereunder.


Few steps and required documents are mentioned below which are needed at the time of company registration:

  • Company Name  / Business name
  • Copy of CNIC / Passport of Director / Chief Executive (passport in case of foreign director)
  • Copy of CNIC / Passport of Company Secretary
  • Address of the company
  • Capital of the company
  • Memorandum of Association
  • Articles of Association
  • Power of Attorney
  • Appropriate Official Fee (non-refundable)

After confirmation that fee has been credited, relevant CRO (Company registration office) takes around One week for completion of new company registration process in Pakistan. If there is any discrepancy arises, it may take more time, so here it is strongly recommended to take the services of experienced professionals who can file your company registration documents and save your precious time.


We are working as finance, tax and  corporate consultants in Islamabad for more than five years.