ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has amended the Single Member Companies (SMC) Rules, 2003, as the current concept has failed to flourish due to cumbersome procedures.

The draft notification for amendments in the SMC Rules has been published in official gazette and has also been placed at the SECP website for public opinion.

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.

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.

At present, SMCs have to provide particulars and documents pertaining to legal heirs as well as details of nominee and alternate nominee directors along with their consents.

Published in Dawn, February 20th, 2015

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