UPSC Prelims Practice Questions — Year-end review 2025: Ministry of Corporate Affairs

Q1. With reference to the Companies Act, 2013 as amended by notification G.S.R. 880(E) dated 1 December 2025, a 'small company' is now defined as a company (other than a public company) whose:

  • A. paid-up share capital does not exceed ₹4 crore and turnover does not exceed ₹40 crore
  • B. paid-up share capital does not exceed ₹10 crore and turnover does not exceed ₹100 crore
  • C. paid-up share capital does not exceed ₹10 crore or turnover does not exceed ₹250 crore
  • D. paid-up share capital does not exceed ₹50 crore and turnover does not exceed ₹500 crore

Q2. Consider the following companies. Which of them are NOT eligible to be classified as a 'small company' under Section 2(85) of the Companies Act, 2013, even if they meet the prescribed paid-up capital and turnover thresholds?

  1. A holding company of another company
  2. A subsidiary company of another company
  3. A company registered under Section 8 of the Companies Act, 2013
  4. An unlisted private manufacturing company with paid-up capital of ₹8 crore and turnover of ₹60 crore
  • A. 1, 2 and 3 only
  • B. 1, 2 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 3 and 4 only

Q3. With reference to the Centre for Processing Accelerated Corporate Exit (C-PACE) and the December 2025 amendment to the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, consider the following statements:

  1. C-PACE is housed at the Indian Institute of Corporate Affairs, Manesar, and was established by a Ministry of Corporate Affairs notification in March 2023.
  2. Under the 31 December 2025 amendment, the indemnity bond for a government company seeking strike-off may be furnished by an authorised representative not below the rank of Joint Secretary of the administrative Ministry or Department.
  3. C-PACE processes applications for voluntary removal of a company's name from the Register of Companies under Section 248(2) of the Companies Act, 2013.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. The Centre for Processing Accelerated Corporate Exit (C-PACE), which handles voluntary strike-off of companies, is operationalised at which one of the following institutions?

  • A. Insolvency and Bankruptcy Board of India, New Delhi
  • B. Indian Institute of Corporate Affairs, Manesar
  • C. National Company Law Tribunal, Principal Bench, New Delhi
  • D. Serious Fraud Investigation Office, Gurugram

Q5. In the context of recent corporate-law reforms, Section 248(2) of the Companies Act, 2013 — under which C-PACE processes applications — specifically deals with which one of the following?

  • A. Voluntary application by a company itself for removal of its name from the Register of Companies
  • B. Suo motu strike-off action initiated by the Registrar of Companies against a defunct company
  • C. Compulsory winding-up of a company ordered by the National Company Law Tribunal
  • D. Fast-track merger between a holding company and its wholly-owned subsidiary

Q6. With reference to the outcomes of the Insolvency and Bankruptcy Code, 2016 as captured in the Ministry of Corporate Affairs Year-end Review 2025, consider the following statements:

  1. The realisation by creditors under approved resolution plans exceeded the liquidation value of the corporate debtors taken as a whole.
  2. The realisation by creditors under approved resolution plans also exceeded the fair value of the corporate debtors taken as a whole.
  3. More than one thousand resolution plans had been approved under the Code as of September 2025.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Under the Insolvency and Bankruptcy Code, 2016, which one of the following is the adjudicating authority for insolvency resolution and liquidation of corporate persons?

  • A. Insolvency and Bankruptcy Board of India
  • B. National Company Law Tribunal
  • C. Debt Recovery Tribunal
  • D. National Company Law Appellate Tribunal

Q8. Under the architecture of the Insolvency and Bankruptcy Code, 2016, which of the following are NOT statutory functions of the Insolvency and Bankruptcy Board of India (IBBI)?

  1. Registering and regulating Insolvency Professionals and Insolvency Professional Agencies
  2. Admitting applications for initiation of Corporate Insolvency Resolution Process against a corporate debtor
  3. Specifying regulations governing Information Utilities
  4. Hearing appeals against the orders of the adjudicating authority under the Code
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q9. For how many consecutive years must a dividend remain unpaid or unclaimed before the underlying amount, along with the corresponding shares, is transferred to the Investor Education and Protection Fund under the Companies Act, 2013?

  • A. Three years
  • B. Five years
  • C. Seven years
  • D. Ten years

Q10. The Investor Education and Protection Fund Authority (IEPFA) is constituted under which provision of the Companies Act, 2013?

  • A. Section 124
  • B. Section 125
  • C. Section 135
  • D. Section 248

Q11. In the context of MCA's 2025 reforms, the 'IEPFA Integrated Portal' is best described as:

  • A. A unified platform linking MCA21, the depositories (NSDL/CDSL) and PFMS to fast-track refund of unclaimed shares and dividends to investors
  • B. A consolidated database of beneficial owners of Indian companies maintained jointly by MCA and SEBI
  • C. A common e-filing gateway replacing MCA21 V3 for all company and LLP statutory filings
  • D. A single-window portal under IBBI for filing insolvency applications and tracking resolution plans

Q12. Which one of the following is the flagship e-governance project of the Ministry of Corporate Affairs, presently being delivered through its Version-3 (V3) platform with web-based forms and multifactor authentication?

  • A. SPICe+
  • B. MCA21
  • C. e-Biz
  • D. INC-32

Q13. With reference to the MCA21 Version-3 (V3) platform vis-à-vis its earlier versions, consider the following statements: 1. MCA21 was the first Mission Mode Project under the National e-Governance Plan. 2. Unlike the earlier versions, MCA21 V3 introduces web-based forms with real-time data validation and multifactor authentication of users. 3. Under MCA21 V3, statutory filings under the Companies Act, 2013 are processed by the Ministry of Finance through the e-Biz portal. Which of the statements given above is/are correct?

  1. MCA21 was the first Mission Mode Project under the National e-Governance Plan.
  2. Unlike the earlier versions, MCA21 V3 introduces web-based forms with real-time data validation and multifactor authentication of users.
  3. Under MCA21 V3, statutory filings under the Companies Act, 2013 are processed by the Ministry of Finance through the e-Biz portal.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q14. Under which one of the following national programmes is the MCA21 project of the Ministry of Corporate Affairs classified as a Mission Mode Project?

  • A. Digital India Programme
  • B. National e-Governance Plan (NeGP)
  • C. e-Kranti Mission
  • D. National Knowledge Network

Q15. In the context of recent reforms by the Ministry of Corporate Affairs, the term 'fast-track merger' under the Companies Act, 2013 refers to which one of the following?

  • A. A scheme of merger or amalgamation between specified classes of companies that is approved by the Central Government without requiring sanction of the National Company Law Tribunal
  • B. A court-monitored compromise or arrangement sanctioned by the National Company Law Tribunal within a statutory ninety-day window
  • C. A cross-border amalgamation between an Indian company and a foreign company approved jointly by the Reserve Bank of India and the Tribunal
  • D. A merger of a sick industrial company approved by the Board for Industrial and Financial Reconstruction on a time-bound basis

Q16. With reference to the amendment notified by the Ministry of Corporate Affairs on 04 September 2025 widening the scope of fast-track mergers under Section 233 of the Companies Act, 2013, which of the following classes of companies have been made eligible to use this route? 1. Two or more small companies 2. A holding company and its subsidiary, where the transferor is an unlisted company 3. Two or more subsidiaries of the same holding company, where the transferor is a listed company 4. Two or more unlisted companies (other than Section 8 companies) meeting prescribed thresholds

  1. Two or more small companies
  2. A holding company and its subsidiary, where the transferor is an unlisted company
  3. Two or more subsidiaries of the same holding company, where the transferor is a listed company
  4. Two or more unlisted companies (other than Section 8 companies) meeting prescribed thresholds
  • A. 1, 2 and 4
  • B. 2 and 3 only
  • C. 1, 3 and 4
  • D. 3 and 4 only

Q17. The requirement of Director's KYC, which the Ministry of Corporate Affairs has recently shifted from an annual filing to an abridged filing once in three years, is governed by which one of the following?

  • A. Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014
  • B. Rule 9 of the Companies (Registration Offices and Fees) Rules, 2014
  • C. Rule 25 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016
  • D. Rule 8 of the Companies (Incorporation) Rules, 2014

Q18. With reference to the legislations administered by the Ministry of Corporate Affairs (MCA), consider the following Acts:

  1. Limited Liability Partnership Act, 2008
  2. Insolvency and Bankruptcy Code, 2016
  3. Securities Contracts (Regulation) Act, 1956
  4. Competition Act, 2002
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4

Q19. Which one of the following is the principal statute that consolidates the law relating to reorganisation and insolvency resolution of corporate persons in India and is administered by the Ministry of Corporate Affairs?

  • A. Companies Act, 2013
  • B. Sick Industrial Companies (Special Provisions) Act, 1985
  • C. Insolvency and Bankruptcy Code, 2016
  • D. Recovery of Debts and Bankruptcy Act, 1993

Q20. The Competition Act, 2002, under which the Competition Commission of India is constituted, is administered by which one of the following Union Ministries / Departments?

  • A. Ministry of Commerce and Industry
  • B. Department for Promotion of Industry and Internal Trade
  • C. Ministry of Finance (Department of Economic Affairs)
  • D. Ministry of Corporate Affairs

Q21. With reference to the Corporate Social Responsibility (CSR) framework under the Companies Act, 2013, consider the following statements regarding changes brought in after the Companies (Amendment) Act, 2020 (notified in 2021):

  1. Earlier, CSR functioned on a 'comply or explain' basis, whereas non-compliance with the CSR spending obligation now attracts a statutory monetary penalty.
  2. Earlier, every qualifying company had to constitute a CSR Committee of the Board; now, where the amount required to be spent does not exceed fifty lakh rupees, the constitution of a CSR Committee is not required and its functions are discharged by the Board.
  3. Earlier, unspent CSR amounts could be retained indefinitely by the company; now, the unspent amount (not relating to ongoing projects) must be transferred to a Fund specified in Schedule VII within six months of the end of the financial year.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q22. Under the Companies Act, 2013, the list of activities which a company may include in its Corporate Social Responsibility (CSR) Policy is specified in:

  • A. Section 135 of the Act
  • B. Schedule V of the Act
  • C. Schedule VI of the Act
  • D. Schedule VII of the Act

Q23. With reference to the Companies (CSR Policy) Rules, 2014 read with Schedule VII of the Companies Act, 2013, which of the following is/are NOT recognised as Corporate Social Responsibility (CSR) activities?

  1. Direct or indirect contribution by a company to any political party under Section 182 of the Companies Act, 2013.
  2. Activities undertaken by a company that benefit only its own employees and their families.
  3. Contribution to the Prime Minister's National Relief Fund.
  4. Contribution to incubators or research and development projects funded by the Central Government.
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 1, 3 and 4
  • D. 3 and 4 only