Question

What is the minimum number of members required to incorporate a company under Companies Act, 2013?

• A. 5
• B. 2
• C. 1
• D. 7

Hint:

Under the Companies Act, 2013: 1 person} can form a company — it's called a One Person Company (OPC)}. It’s ideal for solo entrepreneurs!

Answer 1

The Correct Option is C

Under the Companies Act, 2013, a company can be formed by:

• One person – for a One Person Company (OPC).
• Two or more persons – for a Private Limited Company.
• Seven or more persons – for a Public Limited Company.

Therefore, the minimum number of members required to incorporate a company depends on the type of company being incorporated. For a One Person Company (OPC), which is a unique provision under the Companies Act, 2013, only one individual is required.

This provision was introduced to encourage small entrepreneurs to start businesses with limited liability without needing to find other co-founders or directors.