Question

For one person company, Rule 3 of the Companies (Incorporation) Rules, 2014 provides that its average annual turnover of three years does not exceed ...................

• A. Rs. 2 Crores
• B. Rs. 3 Crores
• C. Rs. 4 Crores
• D. Rs. 5 Crores

Hint:

Rule 3 of the 2014 Incorporation Rules: OPC average turnover limit is Rs. 2 crore.

Answer 1

The Correct Option is A

Step 1: Recall the two limits:
For an OPC under Rule 3 there were two size limits. One was on paid up capital, at Rs. 50 lakh. The other was on average annual turnover of the three previous years, at Rs. 2 crore.

Step 2: Pick the turnover figure:
The question asks only for the turnover limit. That is Rs. 2 crore. The Rs. 50 lakh figure is for capital, so it is not among the options.

Step 3: Reject the other figures:
The values Rs. 3 crore, Rs. 4 crore and Rs. 5 crore do not appear in this rule. They are only distractors.

Final Answer:
Option (1). \[ \boxed{\text{Rs. 2 Crores}} \]