Since 2012 when company law in Uganda was reformed and a new legislation, The Companies Act 2012 put in place, several changes were introduced in relation to company formation and management. One of the landmark changes was the introduction of a single member company. Unlike before 2012 where every company had to be constituted of at least two members, a single person, be it individual (natural person) or corporate (artificial entity) may register a company as sole member and shareholder.
A company which is a single member company must be a private company with it liability limited by shares. As such, such a company cannot issue an invitation to the public to subscribe for any shares of the company. The number of the members of the company must be limited to one member, and must have shares wholly owned by the single member.