SECP amends SMC Rules, 2003

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has amended the Single Member Companies (SMC) Rules, 2003.
A statement said on Monday that the requirements of nominee and alternate nominee directors as well as particulars and documents of the legal heirs of the single member have been deleted from the SMC Rules, which are now no more required in forming the SMC.
Furthermore, a provision for incorporation of the SMC by a corporate legal person has been inserted. In case of death of the single member, the role of secretary has been strengthened, the statement said.
The SMC Rules were earlier introduced in Pakistan in 2002. The detailed-framework for registration of SMCs was provided vide SMC Rules, 2003.
The rules were aimed at allowing 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.
After the elapse of a significant period, need was felt to upgrade the SMCs rules and make the pre-incorporation procedures simple and easy for compliance.
The amendments have been made in light of feedback received from the business community.