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MCQs · Q5

Q.A company that has only one person as its member, as recognised under Section 2(62) of the Companies Act, 2013, is called a:

(a) Private Company
(b) Sole Proprietorship
(c) One Person Company (OPC)
(d) Statutory Company
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Section 2(62) introduced the One Person Company (OPC) specifically to let a single entrepreneur enjoy the benefits of the company form — separate legal entity, limited liability — without needing a second member, unlike a private company which requires a minimum of 2.

Option-by-option analysis:

  • (a) Incorrect — a Private Company (Section 2(68)) requires a MINIMUM of 2 members, not 1. …

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