Question

One person company is defined in section _____ of the Companies Act, $2013$.

• A. $2\left(62\right)$
• B. $3\left(2\right)$
• C. $2\left(12\right)$
• D. none of the above

Answer 1

The correct option is A $2\left(62\right)$

As defined in section 2(62) of Companies Act, a one person company is a company that has only one person as its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member. Such companies are generally created when there is only one founder/promoter for the business.