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Section 3(1) of the Companies Act, 2013 prescribes the minimum number of subscribers required for formation of a company. The minimums are:
Answer & Solution
Correct answer: D.
1. Section 3(1) of the Companies Act, 2013 prescribes the minimum subscriber counts.
2. The Lesson 1 paragraph on Formation and Incorporation of Companies reproduces: (a) 7+ for public; (b) 2+ for private; (c) 1 for OPC.
3. A company formed under Section 3(1) may be limited by shares, limited by guarantee, or unlimited.
4. Section 7 read with Rules sets out the detailed incorporation procedure.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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