Can a single person form a company in Pakistan?

Yes, a single person can form a company in Pakistan. The concept of a single-member company allows for the formation of a company with only one shareholder or member. The Companies Act, 2017, governs the formation and operation of companies in Pakistan, including single-member companies. Here are some key points to consider:

  1. Requirements: To form a single-member company, the individual must meet the legal requirements for company formation in Pakistan. This includes having a registered office address in Pakistan, obtaining a valid National Tax Number (NTN) from the Federal Board of Revenue (FBR), and complying with other relevant regulatory requirements.
  2. Memorandum and Articles of Association: The individual forming the company will need to prepare the Memorandum of Association (MOA) and Articles of Association (AOA) for the company. These documents outline the company’s objectives, structure, and rules for its operation. The MOA and AOA need to be properly drafted and comply with the provisions of the Companies Act, 2017.
  3. Directorship: The single-member company should have at least one director who is responsible for managing the company’s affairs. The same individual who is the sole member/shareholder can also act as the director. However, it is possible to appoint additional directors if desired.
  4. Compliance and governance: The single-member company must comply with legal requirements, such as filing annual returns, maintaining proper accounting records, and conducting meetings as per the Companies Act, 2017. It is important to adhere to these requirements to ensure proper corporate governance and regulatory compliance.
  5. Limited liability: One of the advantages of forming a company is that it offers limited liability protection to its members. This means that the liability of the company’s member(s) is limited to the extent of their investment in the company, and their personal assets are generally shielded from the company’s debts or obligations.

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 aemen@joshandmak.com

 

 

 

For more information email us at aemen@joshandmak.com

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