Company Accounts

Share Capital

Easy

common

Sec. 2 (62) of the companies Act, 2013, defines OPC as a "company which has only one person as a member". Rule 3 of the Companies (Incorporation) Rules, 2014 provides that:

Only a natural person being an Indian citizen and resident in India can form one person company.

Only an artificial person being an Indian citizen and resident in India can form one person company.

Only a natural person being an Indian citizen and non resident in India can form one person company.

Its paid up share capital is not more than Rs. 1500 Lakhs.

✅ Correct Option: 1

Rule 3 of the Companies (Incorporation) Rules, 2014 restricts formation of a One Person Company to a natural person who is an Indian citizen and resident in India; the same person may also be the nominee. An artificial person such as a company cannot form an OPC, and residency in India is required.

2023: 28 May Shift 1

Match List - I with List - II.

List - I	List - II
(A) Over Subscription	(I) Minimum amount that must be raised by issue of shares
(B) Minimum subscription	(II) Application received is more than shares issued
(C) Under Subscription	(III) Allotment of shares without issue of prospectus
(D) Private Placement	(IV) Application received is less than shares issued

Choose the correct answer from the options given below :

2026: 23 May Shift 2

Choose the correct order regarding issue of shares process.

A. Receipt of Applications

B. Issue of Prospectus

C. Allotment of Shares

D. Forfeiture of share

Choose the correct answer from the options given below:

2026: 21 May Shift 1

The correct order of the following events is:

(A) Forfeiture of shares

(B) Capital Reserve

(D) Reissue of shares

Choose the correct answer from the options given below:

2025: 15 May Shift 2

It is available only for the creditors on winding up of the company.

2025: 2 June Shift 2

Securities premium can be utilized for

(A) Writing of preliminary expenses.

(B) Issue of bonus share.

(D) Buy back of shares.

Choose the correct answer from the options given below:

2026: 23 May Shift 2

Discount allowed on reissue of forfeited shares is debited to

Sec. 2 (62) of the companies Act, 2013, defines OPC as a "company which has only one person as a member". Rule 3 of the Companies (Incorporation) Rules, 2014 provides that:

Solution

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