KARACHI (March 21 2003) : The Securities and Exchange Commission of Pakistan (SECP) has finalised the Companies Rules, 2003 to set forth the laws regulating a Single Member Private Limited Company.
The core objective behind the introduction of “Single Member Private Limited Company” (SMC) in the Companies Ordinance 1984, through Companies (Amendment) Ordinance, 2002 was to facilitate sole proprietorships to avail corporate status and have privilege of limited liability as well as to stimulate documentation of the economy.
Company registration offices of the commission have so far incorporated 11 companies with the status of a Single Member Private Limited Company, a press release of the SECP issued here Thursday said.
The commission has elicited opinion from the general public on the draft Rules which have been published in the official gazette and also placed on the SECP Web site (www.secp.gov.pk).
Members of the public and other concerned parties have been invited to forward their comments and views to the commission within 14 days.
Meanwhile, the SECP in pursuance of its effort to strengthen the corporate culture has recommended to the Central Board of Revenue (CBR) to grant tax status of “an individual” to a single member company.
The Single Member Private Limited Companies Rules, 2003 have been outlined keeping in view the practical requirements highlighted by different quarters that need to be addressed through exclusive regulations for this new corporate status.
These rules would apply to a company incorporated as single member company and a private company limited by shares which is a multiple member company and becomes a single member company after complying with the requirements of these rules.
Notable features include: nomination of one or more people to acquire the interest in the shares therein specified for a single member private limited company in the event of death of sole member of the company.