Unilateral contract of a new source for company formation: challenges and strategies of legal personality theory with a single member

A Single-member Company with limited liability is a new foundation that has been formed to avoid Dummy Corporation. As their names suggest, the founder of these companies is a natural or legal person. Currently, Iran Trade Bill has recognized these companies in Article 479 by considering some rules for them. Hence, the questions about these emerging companies before final approval of this bill. The purpose of this study is to answer two questions: what is the legal nature of dummy corporations? Can the unilateral intention of the founder cause some obligations for the legal personality of the company to others? This study tends to prove the legal actions and nature of a single-member company with limited liability in the frame of unilateral obligation theory (or unilateral contract). Unilateral obligation occurs when a person incurs an obligation under his/her own will and liability.