The Securities and Exchange Commission of Pakistan (SECP) in order to facilitate entrepreneurs has proposed important amendments to the Single Member Companies Rules, 2003. (SMC Rules)
SMC Rules were introduced in Pakistan in the year 2002 and a detailed framework for registration of Single Member Companies was provided vide Single Member Companies Rules, 2003 notified through SRO 1086 (I)/2003 dated 02-12-2003. The new law was aimed to allow small businesses to be incorporated, limiting the liability of their members and enabling them to deal with public entities that are required to contract with companies rather than individuals.
A period of about a decade has elapsed since the introduction of single member company law in Pakistan and it was observed that the concept could not flourish per expectations. The major hurdle in the way, according to entrepreneurs, seems to be the cumbersome pre-incorporation procedures.
