'Single Member Company will promote cottage industry'

Raheel Asghar Ginai, Honorary Secretary, Institute of Cost and Management Accountants of Pakistan (ICMA), has said that Single Member Company will especially promote cottage industry in the country and thus contribute in a big way towards development of national economy.
He expressed these views while summing up debate at the technical session of the seminar on 'Single Member Company' held under the auspices of Lahore Branch Council of the Institute of Cost and Management Accountants of Pakistan. Muhammad Siddique, Additional Registrar of Companies, Tahir Mahmood, Joint Registrar of Companies, and Professor Dr Khawaja Amjad Saeed, were the guest speakers.
The speakers were of the view that Single Member Company can give a boost to the business. Under the new arrangements, it has been envisioned that with corporatisation the new sole director companies will be obliged to pay taxes more conscientiously because of documentation and corporate discipline imposed by Securities and Exchange Commission of Pakistan (SECP). Tax culture will be promoted and its demonstration effect may flow over to sole ownership. In this way, the tax net will be broadened and resource mobilisation and capital formation will receive a boost under government patronage, they said. This development will usher in an era of entrepreneurship among the small businessmen in the country, they concluded.