Governing Rules of Capital in Single-Owner Companies under Iraqi Law A Comparative Study

Abstract

A Single-Person Company (SPC) is a form of modern business entity in which a single individual (whether a natural or legal person) is the sole owner, with liability limited to the extent of their capital contribution. This type of company emerged in response to the needs of those seeking to manage their businesses individually without the involvement of partners, while avoiding the significant financial risks associated with traditional sole proprietorships. 

Additionally, an SPC is characterized by simplified incorporation procedures and flexible management structures, free from the complexities arising from multiple shareholders or shared governance. Moreover, it provides legal protection to the owner, as their personal assets are not liable for the company's debts beyond the allocated capital. This model fosters a favorable business environment and encourages individuals to engage in investment with calculated risks, particularly in small and medium-sized enterprises (SMEs