Question

In which of the following situations a one person company (OPC) will mandatorily get converted into either private or public company?

• A. In case the paid-up share capital of an OPC exceeds twenty-five lakh rupees.
• B. In case the paid-up share capital of an OPC exceeds fifty lakh rupees.
• C. In case the paid-up share capital of an OPC exceeds seventy-five lakh rupees.
• D. In case the paid-up share capital of an OPC exceeds one crore rupees.

Answer 1

The Correct Option is B

Under the Companies Act, 2013, an OPC is required to convert into a private or public company if its paid-up share capital exceeds fifty lakh rupees or its average annual turnover exceeds two crore rupees in the preceding three financial years.