Single Member (SMC-PVT) Limited

Single Member (SMC-PVT) Limited

An individual can incorporate a (SMC-PVT) Company limited by shares, which has only on shareholders.
This condition is same for the company registered as Single Member Company (SMC).
 
Transfer of share is also prohibited in the company registered as single member company and can only be done through the will of the only single member or as per the requirements of inheritance law.
 
In case of company registered as single member company nomination of nominee director is filed with the company and thereafter company notifies the registrar of the companies by filing form S1.
 
A company registered as single member company should have only one member.
 
In case of company registered as single member company only one member is the maximum and minimum limit. 
In case of company registered as single member company there is no requirement to obtain certificate to commence business.
 
In case of company registered as single member company prospectus is also not required.
 
In case of company registered as single member company the conditions for appointment of auditors is similar to that of company registered as private limited company.
 
Same conditions apply for company registered as single member company as are applicable to companies registered as private limited company.
 
The conditions for the business of chief executive for single member company are similar to that of the company registered as private limited company.
 
For company registered as single member company appoint of company secretary is mandatory.
 
Similarly in case of company registered as single member company if the number of member is increased from one it has to convert its self into private limited company.