Question

The maximum number of persons required to form a private company is

• A. 2
• B. 7
• C. 10
• D. 15

Hint:

Private companies typically require a minimum of two members to be formed.

Answer 1

The Correct Option is A

Step 1: Understanding the requirements for forming a private company.
According to company law in many jurisdictions, the minimum number of persons required to form a private company is two. This applies to the formation of private limited companies, which is a common business structure.
Step 2: Analyzing the options.
(A) 2: Correct — A private company can be formed with as few as two members.
(B) 7: This is incorrect, as the minimum required is typically two members.
(C) 10: This is incorrect, as more than two members are not required for forming a private company.
(D) 15: Again, more than two members are not required for forming a private company.
Step 3: Conclusion.
The correct answer is (A) 2 as the minimum number of persons required to form a private company.

Answer 2

A private company can be brought into legal existence with a very small founding group, and company law fixes an exact minimum for this. Let's check each option against that statutory number.

1. 2: A private company can be validly incorporated with as few as two subscribers to its memorandum, making two people the smallest founding group the law recognises as sufficient to bring one into existence.
2. 7: Seven is instead the minimum number of members needed to form a public company, a different category of company with its own separate threshold.
3. 10: This number does not correspond to any statutory member threshold for either private or public companies.
4. 15: This figure also has no basis in the statutory member requirements for company formation.

Since two is the smallest number of people the law requires to bring a private company into being, and none of the larger numbers correspond to any recognised private-company threshold, the founding requirement points clearly to one option.

Therefore, the correct answer is 2.