One Person Company(OPC) November 29, 2023 Contents Results - #1. What is the minimum number of members required to form a One Person Company (OPC)? 1 1 2 2 3 3 5 5 #2. In an OPC, who is the sole decision-maker and responsible for the management of the company? Board of Directors Board of Directors Shareholders Shareholders Company Secretary Company Secretary Single-member/Owner Single-member/Owner #3. What is the maximum limit of paid-up share capital for an OPC to be eligible? No limit No limit 1 crore 1 crore 5 crores 5 crores 10 crores 10 crores #4. Can a natural person be a member in more than one OPC? Yes Yes No No Only if approved by the government Only if approved by the government Only if the total share capital is below a certain threshold Only if the total share capital is below a certain threshold #5. What is the significance of the term "limited liability" in the context of an OPC? The liability of the owner is limited to the company's assets The liability of the owner is limited to the company's assets The company is not liable for any debts or obligations The company is not liable for any debts or obligations The liability is unlimited in an OPC The liability is unlimited in an OPC The liability is limited to the owner's personal assets The liability is limited to the owner's personal assets #6. Can an OPC be converted into a private or public company at a later stage? Yes, under certain conditions Yes, under certain conditions No, it is not allowed No, it is not allowed Only if approved by the government Only if approved by the government Only if there are multiple members in the OPC Only if there are multiple members in the OPC #7. What is the primary objective of introducing the concept of OPC? To promote joint ventures To promote joint ventures To encourage foreign investment To encourage foreign investment To provide a legal structure for small businesses with a single owner To provide a legal structure for small businesses with a single owner To simplify tax regulations To simplify tax regulations #8. What is the tenure of the nominee in an OPC? Lifetime Lifetime Until the owner decides to change the nominee Until the owner decides to change the nominee 5 years 5 years 10 years 10 years #9. In case of the death of the sole member of an OPC, what happens to the company? The company is dissolved The company is dissolved The nominee takes over and becomes the member The nominee takes over and becomes the member The company is converted into a partnership The company is converted into a partnership The company is taken over by the government The company is taken over by the government #10. What is the regulatory body overseeing the registration and functioning of companies, including OPCs, in India? SEBI (Securities and Exchange Board of India) SEBI (Securities and Exchange Board of India) RBI (Reserve Bank of India) RBI (Reserve Bank of India) MCA (Ministry of Corporate Affairs) MCA (Ministry of Corporate Affairs) IRDAI (Insurance Regulatory and Development Authority of India) IRDAI (Insurance Regulatory and Development Authority of India) Finish