ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP) has amended the Single Member Companies (SMC) Rules, 2003 while the draft notification for amendments has been published in official gazette and also placed at its website for public opinion.
The decision was made due to the failure of the current concept to flourish due to cumbersome procedures. The incumbent concept of SMC was introduced in 2002, and the detailed framework for registration, in this regard, was provided vide Single Member Companies Rules, 2003.
SMCs at present have to provide particulars and documents pertaining to legal heirs as well as details of nominee and alternate nominee directors along with their consents. These rules allow single persons/businessmen to convert their non-corporate entities into companies with limited liability of the members and enabling them to deal with public entities as companies rather than individuals.
