As per Lawkidunya, In Pakistan, a Single Member Company (SMC) has the following characteristics:

Legal Characteristics of Single Member Company (SMC) in Pakistan

1. Separate Legal Entity: An SMC is a separate legal entity from its single member.
2. Limited Liability: The single member’s liability is limited to the amount of capital contributed.
3. Perpetual Succession: An SMC continues to exist even if the single member changes or passes away.

Ownership Characteristics of Single Member Company (SMC) in Pakistan

1. Single Member: An SMC has only one member, who can be an individual or a corporate entity.
2. No Minimum Capital Requirement: There is no minimum capital requirement for an SMC in Pakistan.
3. No Maximum Capital Limit: There is no maximum capital limit for an SMC in Pakistan.

Management Characteristics of Single Member Company (SMC) in Pakistan

1. Single Member as Director: The single member can also be the director of the company.
2. No Requirement for Board Meetings: There is no requirement for board meetings, as the single member can make decisions independently.
3. Flexibility in Decision-Making: The single member has complete control over decision-making.

Financial Characteristics of Single Member Company (SMC) in Pakistan

1. Taxation: SMCs are taxed at a rate of 20% of the taxable income.
2. Annual Returns: SMCs must file annual returns with the Securities and Exchange Commission of Pakistan (SECP).
3. Audit Requirements: SMCs must have their financial statements audited annually.

Other Characteristics of Single Member Company (SMC) in Pakistan

1. Easy to Establish: Setting up an SMC in Pakistan is relatively easy and straightforward.
2. Confidentiality: The financial statements and other information of an SMC are not publicly disclosed.
3. Professional Image: Having an SMC can help project a professional image and enhance credibility.