SOCIETY REGISTRATION

SOCIETY REGISTRATION

It is mainly formed for the purpose of charitable activities such as to promote and develop the science, arts, education, sports.


Overview

A society is an organization or association of persons who come together and work to achieve a common objective i.e. to promote and develop those activities that is beneficial for the society. It is a non-profit organization. Its main objective is to serve people and not to earn profit. The society needs to get registered under the Society Registration Act, 1860 in order to become a legal entity in the eye of Law.

The members of the society have to regularly check on the activities that they had undertaken to promote and develop for the welfare of the general public. Under the Society Registration Act, 1860, the society gets registered. This Act was introduced to govern the act of society. This Act lays down certain rules and regulations that the societies registered under it have to follow mandatorily. In this article, we will discuss the society registration process in detail.
 

What is the purpose of forming the Society

Society is formed to promote and develop the area of art, science, education, diffusion of constructive knowledge, diffusion of education related to politics or any charitable purposes. As per section 20 of Society Registration Act, 1860, a society can be registered for the following purposes:

  1. To promote fine arts
  2. Diffusion of education related to politics.
  3. Funding of charitable aid
  4. To promote science and literature
  5. To create military orphan funds
  6. Maintenance or foundation of galleries or public museum
  7. Maintenance or foundation of reading rooms or libraries
  8. Promotion or diffusion or instruction of useful knowledge
  9. Collections of natural history
  10. Collections of mechanical and philosophical inventions, designs, or instruments
     

Salient features of Society Registration

There are following features of Society Registration and they are as follows-

  • To form a society at least 7 or more people are required. These people will be termed as members of the society.
  • The common objective of all the members in order to form and run the society should be mutual.
     

Following body corporate can also become the member of the society:

  • i.  Foreigners
  • ii.  Partnership firm
  • iii.  Limited company
  • iv.  Registered society
  • v.  Foreign companies
  • vi.  Indian companies
  • vii.  Other registered society(ies)
     

Registration of society is not mandatory but if the society gets registered as per the Act, then it gains the legal status in the eye of law and enjoys various benefits as offered by the Government.
 

Advantages of Society Registration

There are certain advantages that the society gets after the registration and the advantages are as follows:

a.  Society will be considered as separate legal entity after the registration.

b.  The society being the separate legal entity has the rights to lease, sell, buy or rent any property in its own name.

c.  A society can also borrow money or can enter into the contract in its own name.

d.  The member of the society will not be personally liable of any debt or obligation of the society.

e.  Under the Income Tax Act, society can also avail certain exemptions.
 

Documents required for Society Registration

For Society Registration, the following documents are required-

  • A cover letter with a request of society registration under the law.
  • Copy of Memorandum of Association
  • A Copy of Rules and Regulation of the Society
  • A detailed list of all the members of the Society such as name, address, phone number etc.
  • A copy of Affidavits of the office bearers
  • Members Residential Address Proof
  • Identity Proof of all the members
  • Registered address proof of the Society such as house tax receipt, rent receipt etc.
  • No Objection Certificate (NOC) from the Landlord, if rented.
  • Letter of declaration is required to be given by the president of the proposed society citing his willingness and competency for holding the said post.
     

The applicant has to submit all the above-mentioned documents to the Registrar of the Societies along with the requisite fee as prescribed in 2 copies. One set of the documents will be returned as an acknowledgment. After the proper verification of the documents, Certificate of Incorporation with a registration number will be allotted. 
 

ALSO READ: SECTION 8 COMPANY (NGO) REGISTRATION IN INDIA
 

Procedure of Society Registration

One has to select the following steps in order to register the society and the steps are as follows:

To select the name of the society

The name of the society should be unique. If found identical or similar to the name of the already existing society, authority will not approve the registration. The name of the society should as per the laws and provisions of the Society Act, 1860.

The provision of the Emblem & Names Act, 1950, should not be violated while finalizing the name of the society. It should also be kept in mind that while selecting the name of the society such words should be avoided which can be objected by the Government or by any community.
 

Drafting of Memorandum of Association

After selecting the name of the society, the members should draft the Memorandum of Association of the society. Memorandum of Association reflects the purpose for which the society is formed. In the Memorandum of Association of the society, the following details must be there:

  • The name of the society
  • Registered office of the society
  • Area of operation of the society
  • Aims and objects of the Society
  • Name, address and other details of the directors, council or other members of the governing body who shall be regulating the management of its affairs.
  • Governing body
  • Desirous persons
  • Detail of the members of the general body along with their signature
     
Drafting of Rules and Regulations

The following rules and regulations should be drafted:

  • A well prepared Constitution of the Society
  • Details regarding membership and subscription
  • Details regarding the termination of the Members
  • Office Bearers full detail
  • The duties of the Office Bearers
  • Society’s Source of Income and Bank Accounts
  • Election
  • Audit
  • Meetings
  • Dissolution of the Society
  • Provision of Legal Disputes
     
To submit the Application for the Society registration

The application along with all the required documents for the Society registration should be submitted to the Registrar of the Society. The State Government manages the Society Registration.

So, the application for society registration needs to be submitted to the concerned authority of the state, where the registered office of society is situated. The applicant also has to pay the requisite fees as decided by the state government.

Note:

1.  Memorandum of Association and Rules & Regulations of the Society has to be signed by the members of the society,  and in the form of witness it should be signed by Gazetted Officer, Notary Public, Chartered Accountant, Oath Commissioner, Advocate, Magistrate first class or Chartered Accountant with their official stamping and complete address.

2.  The Memorandum of Association and Rules & Regulation of the society can be altered as and when required but it should under the provisions of the Society Act, 1860.
 

Frequently Asked Questions

Who is the regulatory authority of the Society?

The Registrar of the Society of the state where the registered office of the society is situated is the regulatory authority. The State Government manages the Society Registration.
 

How many people are required to form a society?

To form a society at least 7 or more people are required. These people will be termed as members of the society.
 

Can a body corporate be a member of the Society?

Yes, a body corporate can be a member of the Society.
 

Is Foreign National allowed to become a member of the Society?

Yes, the Foreign Nationals are allowed to become a member of the Society.
 

For what purpose the society is formed?

Society is formed to promote and develop the area of art, science, education, diffusion of constructive knowledge, diffusion of education related to politics or any charitable purposes. As per section 20 of Society Registration Act, 1860, a society can be registered for the following purposes:

  1. To promote fine arts
  2. Diffusion of education related to politics.
  3. Funding of charitable aid
  4. To promote science and literature
  5. To create military orphan funds
  6. Maintenance or foundation of galleries or public museum
  7. Maintenance or foundation of reading rooms or libraries
  8. Promotion or diffusion or instruction of useful knowledge
  9. Collections of natural history
  10. Collections of mechanical and philosophical inventions, designs, or instruments
     
What are the benefits of Society Registration?

The benefits of Society Registration are as follows:

  • Society will be considered as separate legal entity after the registration.
  • The society being the separate legal entity has the rights to lease, sell, buy or rent any property in its own name.
  • A society can also borrow money or can enter into the contract in its own name.
  • The member of the society will not be personally liable of any debt or obligation of the society.
  • Under the Income Tax Act, society can avail certain exemptions.
     
What are the documents required for the Society Registration?

The documents that are required for society registration are:

  • A cover letter with a request of society registration under the law.
  • Copy of Memorandum of Association
  • A Copy of Rules and Regulation of the Society
  • A detailed list of all the members of the Society such as name, address, phone number etc.
  • A copy of Affidavits of the office bearers
  • Members Residential Address Proof
  • Identity Proof of all the members
  • Registered address proof of the Society such as house tax receipt, rent receipt etc.
  • No Objection Certificate (NOC) from the Landlord, if rented.
  • Letter of declaration is required to be given by the president of the proposed society citing his willingness and competency for holding the said post.
     
Can the Memorandum of Association of the Society be altered?

Yes, the Memorandum of Association of the Society be altered after following the proper procedure as per the prescribed act.
 

Can the profit of the society be shared amongst the members of the society?

No, the profit of the society cannot be shared amongst the members of the society. The profit will be used for the purpose of the society for which it is formed.
 

What are the details that are required to be mentioned in Memorandum of Association?

In the Memorandum of Association of the society, the following details must be there:

  • The name of the society
  • Registered office of the society
  • Area of operation of the society
  • Aims and objects of the Society
  • Name, address and other details of the directors, council or other members of the governing body who shall be regulating the management of its affairs.
  • Governing body
  • Desirous persons
  • Detail of the members of the general body along with their signature
     
Does society have to maintain a book of accounts?

Yes, Societies are required to maintain a book of account and get it audited every year.
 

Edited by Minu Mishra

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