Question

A private company can be incorporated under the provisions of the Companies Act 2013 with a minimum of:

• A. One member
• B. Two members
• C. Seven members
• D. Ten members

Hint:

The Companies Act 2013 introduced the 'One Person Company' (OPC) as a new category, which is a major exception to the general requirement of two members for private limited entities.

Answer 1

The Correct Option is B

Concept: The Companies Act, 2013, provides different thresholds for the minimum number of members required to incorporate various types of companies in India.

Step 1: Reviewing membership requirements.
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Private Company: Requires a minimum of two members to be incorporated.
-

Public Company: Requires a minimum of seven members to be incorporated.
-

One Person Company (OPC): Specifically allows for incorporation with just one member.

Step 2: Analyzing the question requirements.
Since the question asks for the minimum members for a standard 'Private Company' (not an OPC), the correct statutory threshold is two. equation Minimum members for Private Company = 2 equation center Two members center