Formation and Management of a Single Member Company in Uganda

A single member company herein after referred to as “SMC” is defined as a private company limited by shares or by guarantee, which is incorporated with one member, or whose membership is reduced to one person[i]. This is a new development as the Company Act Cap 110 did not provide for it, it was impossible for an individual to form a company as a minimum number of persons were two members[ii]. In essence, a single member company is a sole proprietor doing business with the kind of protection granted to shareholders in a limited liability company. It operates like any private company in all respects. A single person, be it individual (natural person) or corporate (artificial entity) may register a company as sole member and shareholder [i] A Practical Guide to Company Law and Practice in Uganda. Nelson Nerima. [ii] Section 3 of the Company Act Cap 110.