Single member company

The idea of protecting themselves against the risks of economical and commercial life by setting their private properties apart from their commercial properties has emerged after the developments in economic life and the dynamism of commercial life.Limiting the responsibility in small and medium sized enterprises is actualized by forming ?limited liability of the individual entrepreneur? and by ?single member company?. The merchant is responsible for the debts of the company, up to the amount of his capital in the limited liability of the individual entrepreneur. By doing so, for the commercial activities of merchant, it is prevented to apply to the merchant?s private capital.In general, the purpose of the partnerships is to put together the economic and capital power of members. Currently, it is enabled that partnerships can consist of one member. That gives the advantages of corporate body to partner. The single member company is formed by reducing the number of partners to one partner or establishing the partnership with one partner in the foundation of partnership. In practice, this partnership is formed as ?single member public company? or ?single member private company? and is liable for the rules of these partnerships. Currently, the single member company is gradually becoming widespread because of its advantages.