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Minimum number of members to form a private company is
- a)5
- b)7
- c)2
- d)3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Minimum number of members to form a private company isa)5b)7c)2d)3Corr...
The correct option is (c) because
Minimum number of members is required to form a private company is 2,
whereas a Public Company requires at least 7 members.
Minimum number of members is required to form a private company is 2,
whereas a Public Company requires at least 7 members.
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Community Answer
Minimum number of members to form a private company isa)5b)7c)2d)3Corr...
Minimum Number of Members for Private Company Formation
Explanation:
Private Company Formation Requirements:
- Private companies are required to have a minimum number of members to be formed.
- The Companies Act, 2013 in India specifies the minimum number of members needed for forming a private company.
Minimum Number of Members:
- The minimum number of members required to form a private company is 2.
- This means that a private company can be formed with just two individuals as members.
Significance of the Minimum Number:
- Having a minimum of 2 members allows for greater flexibility in forming a private company.
- This requirement makes it easier for individuals to start a business together without the need for a large number of members.
Benefits of a Private Company:
- Private companies offer limited liability protection to their members.
- They have fewer compliance requirements compared to public companies.
- Private companies allow for greater control and privacy in terms of ownership and management.
Conclusion:
- In conclusion, the minimum number of members required to form a private company is 2. This requirement enables individuals to start a business together with ease and flexibility.
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Minimum number of members to form a private company isa)5b)7c)2d)3Correct answer is option 'C'. Can you explain this answer?
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Minimum number of members to form a private company isa)5b)7c)2d)3Correct answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Minimum number of members to form a private company isa)5b)7c)2d)3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Minimum number of members to form a private company isa)5b)7c)2d)3Correct answer is option 'C'. Can you explain this answer?.
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