A One Person Company (OPC) is defined under Section 2(62) of the Companies Act, 2013, as a company with only one person as a member.
For maintaining the status of an OPC, the Companies Act, 2013 prescribes certain threshold limits. If these limits are exceeded, the OPC must convert itself into a Private Limited Company or Public Limited Company within 6 months.
Threshold Limits for OPC:
Paid-up Share Capital: Should not exceed ₹50 Lakhs
Average Annual Turnover: Should not exceed ₹2 Crores (for immediately preceding three consecutive financial years)
Once either of these limits is breached, the OPC loses its eligibility to continue as an OPC and must undergo conversion to another form of company.
Correct Answer: Option 1 - 50 Lakhs