Yes, a single person can form a company in Pakistan. This is governed by the Companies Act, 2017, which allows for the formation of a Single Member Company (SMC). The relevant provisions are as follows:
- Formation: According to Section 14(c) of the Companies Act, 2017, a single person may form a Single Member Company by complying with the requirements for the registration of a private company and any other requirements specified by the SECP.
- Requirements: The single member forming the company must submit a memorandum of association and nominate a person who, in the event of the death of the sole member, will be responsible for managing the company’s affairs as a trustee until the shares are transferred to the legal heirs. The succession will be determined under Islamic law of inheritance or the respective law for non-Muslim members.
- Nomination: The memorandum must include a nominee who will assume control and facilitate the transfer of shares to the legal heirs upon the sole member’s death. If the transfer is made to more than one legal heir, the company will no longer be considered a Single Member Company and must comply with the provisions applicable to private companies with multiple members.
- Compliance with Private Company Regulations: The SMC must adhere to the same regulations that apply to private companies, with adjustments made for its single-member status. This includes maintaining proper records, holding meetings, and fulfilling any regulatory requirements imposed by the SECP .
Thus, the legal framework in Pakistan provides a structured process for a single person to establish and operate a company, ensuring continuity and proper management through designated nominees in case of unforeseen circumstances.
It is advisable to consult with legal professionals or experts in company law like Josh and Mak International in Pakistan to ensure compliance with all legal requirements and to understand the process of forming a single-member company in detail. Our team can guide you through the necessary steps and assist in the proper formation and registration of the company.Email us now at [email protected]
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