Single member company (SMC)
Incorporate a company with one owner, so you keep limited liability without needing partners.
Overview
A single member company lets one person own a company with limited liability. Under section 14 the sole member nominates a person who, on the member's death, transfers the shares to the legal heirs and manages the company as trustee until then.
Why it matters
A single member company lets one person own a company with limited liability. It is ideal for solo founders and consultants who want the credibility of a company without a partner.
Who needs this
- Solo founders
- Consultants and freelancers wanting a corporate entity
- Owners who want liability separate from personal assets
How it works
Who does each step, and how long it usually takes once documents are complete.
- 1Nominee selectionYou
Choose a nominee director and an alternate nominee.
1 day - 2Name reservationTAXWORK
Name approved by SECP.
1–2 working days - 3FilingTAXWORK
Incorporation documents with nominee consents filed online.
1 day - 4CertificateSECP
Certificate issued and NTN linked.
Usually 1–5 working days - 5Bank accountYou
Opened with the incorporation documents.
1–2 weeks
Documents we need
Tick what you already have, then send the list to us.
Which company type fits you?
Under the Companies Act 2017 (sections 2(49), 14, 42, 154 and 247) and the LLP Act 2017.
| Type | Members | Directors | Liability | Auditor | Best for |
|---|---|---|---|---|---|
| Single member company | 1 | 1 + nominee | Limited by shares | CMA or CA if paid-up capital under Rs 3M | Solo founders |
| Private limited | 2 to 50 | 2 | Limited by shares | CMA or CA if paid-up capital under Rs 3M | Startups and family businesses |
| Public (unlisted) | 3 or more | 3 | Limited by shares | Chartered accountant | Raising capital from many investors |
| Listed company | 3 or more | 7 | Limited by shares | Chartered accountant | Public share trading on PSX |
| Limited by guarantee | Members | 2 or 3 | Up to the guarantee | As per company type | Associations and clubs |
| Section 42 NPO | 3 or more | As per type | Licensed, no profit distribution | Chartered accountant | Charities and foundations |
| LLP | 2 or more partners | Designated partners | Limited for partners | As required | Professional firms, joint ventures |
| Foreign branch / liaison | Foreign parent | Authorised person | Parent's liability | Chartered accountant | Foreign companies entering Pakistan |
What you receive
- Certificate of incorporation
- Nominee consents on record
- Company NTN
- Bank documentation
Deadlines, risks and penalties
- The SMC must still hold its statutory filings and audit where required
Mistakes we fix, and what our fee covers
Common mistakes we fix
- Annual return (Form A / Form 29) filed late, which brings SECP penalties
- Change of directors, shares or address not reported to SECP
- Company NTN and tax return not filed even when there is no income
- Beneficial ownership register not kept up to date
Included in our fee
- Name check, documents and filings on SECP eServices
- Board and shareholder resolutions drafted for you
- Company NTN and FBR profile set up or updated
- A compliance calendar for the year ahead
Law and references
The sections and rules this service is based on.
- Companies Act 2017, s.14(1)(c) – single member company and nominee
- s.154 – at least one director
- Form-9 – particulars of directors, officers and the nominee
Questions
How long does it take?
About 1–2 weeks. Step by step: Nominee selection (1 day), Name reservation (1–2 working days), Filing (1 day), Certificate (Usually 1–5 working days), Bank account (1–2 weeks).
What does it cost?
Our service fee is from Rs 20,000 + SECP fee. Government fees are extra where they apply.
What happens if I miss a deadline?
The SMC must still hold its statutory filings and audit where required.
Can an SMC become a private company later?
Yes, by adding members and converting through SECP.
Do I need a nominee?
Yes. An SMC requires a nominee director who takes over in certain events.
Can it add shareholders later?
Yes. An SMC can convert to a private company when more members join.
Why clients choose TAXWORK
Individuals, businesses and companies across Pakistan and overseas.
Rawalpindi/Islamabad, Sialkot and Karachi (with Raza Siddiqui & Co., Chartered Accountants).
You get the scope and a fixed fee in writing before any work starts.
Progress updates, and a copy of everything we file or submit for you.
Keep reading
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View service →Ready to get single member company (SMC) done?
Send your documents on WhatsApp or book a meeting. A consultant confirms the scope and a fixed fee before any work starts.