Question

Which of the following is not true about one person company? A) only a natural person shall be eligible to incorporate OPC. B) OPC ceases to be entitled as OPC when its paid up capital exceeds fifty lakhs rupees. C) OPC ceases to be entitled as OPC when its average annual turnover exceeds to crore rupees. D) both artificial and natural person shall be eligible to incorporate OPC. ​

Answer 1

Answer:

B is the right answer

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Answer 2

OPC ceases to be ‘entitled as OPC’ when its’ average annual turnover’ exceeds to ‘crore rupees’.

Option: C

Explanation:

• The OPC ceases to be ‘entitled to OPC’ when its average turnover exceeds Rs. 2 crores. It will cease to be ‘entitled to continue’ as an OPC.  

• It can be changed to a ‘private limited company’ or a ‘public limited company’ when the paid-up share of the capital needed for OPC goes above fifty lakhs.  

• It will stop being considered as an OPC under both these circumstances. The ‘OPC can be converted into either a private’ or a public company after two years from the date it being incorporated.