A single member company is a private limited company that has only one member (shareholder), either from when the company incorporation was first completed or since then if the number of members has been reduced to one.

If you are a sole member company you must still ensure that you maintain your company registers correctly even though you are the only member of the company.  This is because firstly by law, all companies must have an up to date company register, but also so that any decisions can be seen to anyone wishing to be involved with the company at a later date.

If as a single member you make a decision that is not by written resolution you must ensure that there is a written record of the decision in the company’s records. Unwritten contracts with a sole member must also be recorded.  This is done either in the company’s articles or is made in the minutes of the next director’s meeting.

When a company becomes a single member company, either upon incorporation or later, it must be clear in the company’s registers that the company is then a single member company.

There is however no legal difference between a normal private limited company and a single member company.  The incorporation process is also identical no matter whether the company has more than one member or not.

Wisteria Formations can complete your UK limited company formation. You can begin the application process here: http://www.wisteriaformations.co.uk