In the case of a One-Person Company, as per Rule 3 of the Companies (Incorporation) Rules, 2014, which of the following statement is not true?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Its paid up share capital is not more than Rs. 1 crore
Rule 3 of the Companies (Incorporation) Rules, 2014 puts the limit for a One Person Company at a paid-up share capital of not more than Rs. 50 lakhs, not Rs. 1 crore. The other three statements, a natural person who is an Indian citizen and resident, no non-banking financial investment activities, and an average annual turnover of three years not above Rs. 2 crores, are the conditions of the rule as given.
NCERT (2026-27 edition):
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