The paid up share capital of "One Person Company" cannot be more than :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹50 lakhs
A One Person Company is a company with only one person as a member. Under Rule 3 of the Companies (Incorporation) Rules, 2014, as given in the NCERT book, its paid-up share capital cannot exceed ₹50 lakhs and its average annual turnover cannot exceed ₹2 crores.
Note: The ₹50 lakh paid-up capital limit (and the ₹2 crore turnover limit) for a One Person Company was removed by the Companies (Incorporation) Second Amendment Rules, 2021, with effect from 1 April 2021. The answer here follows the NCERT book, which still states the earlier limit.
NCERT (2026-27 edition):
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