ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    тЪб Month End Offer - Flat 52% Off On All Courses! Enroll Now тЪб
    00:00:00 AM Left

    Question

    Which of the following statements correctly describes

    the concept of 'One Person Company' (OPC) under the Companies Act, 2013?
    A An OPC must have at least two directors. Correct Answer Incorrect Answer
    B An OPC can only be incorporated as a public company. Correct Answer Incorrect Answer
    C An OPC requires at least two shareholders. Correct Answer Incorrect Answer
    D An OPC is a company with only one member and can be converted into a private or public company. Correct Answer Incorrect Answer
    E An OPC can raise capital from the public through shares. Correct Answer Incorrect Answer

    Solution

    As per Section 2(62) of the Companies Act, 2013, a One Person Company (OPC) is: тАв A company that has only one person as a member, and тАв Is typically incorporated as a private company. OPCs allow individuals to enjoy the benefits of limited liability while doing business alone. тАв An OPC may voluntarily convert into a private or public company once it meets certain thresholds (like paid-up share capital exceeding тВ╣50 lakh or average annual turnover exceeding тВ╣2 crore тАФ as per Rule 6 of the Companies (Incorporation) Rules, 2014). тАв It is not allowed to raise funds from the public. This form is ideal for solo entrepreneurs who want to formalize their business with legal recognition and limited liability.

    Practice Next
    More Other Laws and Acts Questions
    ask-question