The "single-owner commercial company" is a distinct legal entity and a relatively novel legal innovation recognized in many legal systems worldwide including that of the United States where it plays a fundamental role in economic development and the organization of commercial activities; indeed, in recent years, approximately half of all commercial companies have been formed and registered under the "sole ownership" model, thereby securing a significant position. Despite the growing popularity of this corporate form, the Iranian legal system still does not provide for the establishment of "single-owner commercial companies," and the new Commercial Bill under legislative review since 2005 has yet to be enacted.
In the United States, a single-member business entity can be established in the form of a corporation or a limited liability company; beyond facilitating individual investment, this structure plays a significant role in mitigating the risks associated with economic activities and enhancing legal certainty for third parties. The United States is at the forefront of developments regarding the formation, structure, governance, oversight, transparency, dissolution, liquidation, and "piercing the corporate veil" of single-member business entities. An analytical and comparative study of this subject could pave the way for reforming Iranian laws, distinguishing the concept of a "company" from a "partnership," and ultimately adopting the single-member business entity within the Iranian legal system.