Non Goverment Organisation (NGO)

NGO (Section 8) Company, the most popular legal structure, should be chosen by anyone planning to undertake charitable activities. A Private limited company can be incorporated with minimum 2 directors and maximum 200 directors and has a minimum of two shareholders and a maximum of 200 shareholders. A owners of private limited company have limited liability to creditors. In case of a default, banks / creditors can sell only company’s assets but not the personal assets of a directors.

Tech companies and startups usually prefer Private Limited company because it is easy to raise funds from venture capitalists. Also funds can be raised through SAFE agreement. The tax rate for the private limited company is also less compared to LLP. Company Registration in India can be done through BusinessSetup in all major cities including Bangalore, Mumbai, Pune etc.

Why Choose Section 8 Company Registration?

  1. Ideal for charitable activities
  2. Limited Liability
  3. Can be incorporated in 20 working days
  4. Less expensive to incorporate

Why not choose a Section 8 Company?

  1. The compliance cost is a bit high
  2. Majority directors consent needed to take decisions
  3. Cannot transfer the shares easily

Factors which are important to decide the name of the company

There are certain rules laid down by the government to decide the name of the company. The name should be unique so a s to avoid the rejections. Following are the important guidelines for selecting the name of the company:

The name of the company should have the meaning or relevance. It should is no way hurt any sentiments.

The name of the company mustn’t be the same or identical to an already existing company or a trademark. One must preferably avoid the plural version.

The name of the company shouldn’t be against the law. It shouldn’t be abusive or against customs and the beliefs of any religion.

The name of the company cannot be an abbreviation. It should be a complete word.


Yes, any of your relative can be a director in company.
Yes you can register a company at your residential address.
Minimum 2 directors are required to register a company.
No, a single person cannot register a private limited company, but he can register a One Person Company
No, there is no requirement of minimum capital. You can start a company with as low as Rs 100.

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