A company having only a natural person as an Indian citizen and resident in India and cannot carry out non-banking financial investment activities. Its paid-up share capital is not more than Rs. 50 lakhs. Its average annual turnover of three years does not exceed Rs. 2 crores. Which type of company is this?

One Person Company

Correct answer: Option (4) → One Person Company

Concept: A One Person Company (OPC), introduced by the Companies Act, 2013, has a single natural person (Indian citizen and resident) as its member – discussed in Accounting for Share Capital.

The features described – a single natural person who is an Indian citizen and resident, a bar on carrying out non-banking financial investment activity, paid-up capital within the prescribed limit and turnover within the prescribed limit – are the defining conditions of a One Person Company. These distinguish it from a public, private or unlimited company, each of which needs more than one member.