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In the case of a One-Person Company, as per Rule 3 of the Companies (Incorporation) Rules, 2014, which of the following statement is not true?

Solution

✅ Correct Option: 3

Rule 3 permits only a natural person who is an Indian citizen and resident in India to form an OPC and bars an OPC from carrying on non-banking financial investment activities, so those statements are true. The threshold linked to conversion was paid up capital of Rs. 5050 lakh, not Rs. 11 crore, alongside average annual turnover of Rs. 22 crore. Hence the paid up capital statement is not true.

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