Sole Proprietorship – Effects

A single-member limited liability company is formed by a sole shareholder, either an individual or a legal entity, who holds the entire share capital. The company’s name must include the term “single-member company” or the word “single-member” before “limited” or its abbreviation “Ltd.”. Effects of Sole Proprietorship:

• An individual may only be a shareholder in one single-member limited liability company.
• A limited liability company cannot have a single-member limited liability company as its sole shareholder.
• In the event of a violation of these rules, any interested party may request the administrative dissolution of the companies.
• The competent registration authority may grant a 30-day period to rectify the situation, which can be extended up to 90 days upon request by the interested parties.