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SOCIETY REGISTRATION

"GST registration is essential for legal business operations and unlocking tax benefits."

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Enquiry for Society Registration

SOCIETY REGISTRATION

Hey! So you're curious about society registration, huh? Well, basically, society registration is all about getting a formal recognition and legal status for any group of people who've come together for some common purpose—like a club, association, or non-profit organization. Think of it like making a band official with a signed record deal. In many places, societies can be registered under the Society Registration Act, which is sort of like the rulebook. It outlines things such as how many people need to sign up, the paperwork involved, and what documents need to be submitted. Once registered, the society gets certain benefits, such as legal identity, can own property, and can sue or be sued. Plus, having that legal backing can also help with credibility when you're trying to raise funds or work with other organizations. So in short, it's the formal way of saying, 'Hey world, we mean business!' when it comes to doing your group's activities.

Purpose of Society Registration

Legal Recognition:

Registration is the only way for the society to gain legal status. It makes the society a formal entity in the eyes of the government and other organizations. This is vital for society, especially in dealing with donors, partners, and governments.

Limited Liability:

Members of the society generally receive protection from such liability as they register. The society is an independent legal person. So, its members are not liable for their debts or legal commitments.

Ability to Enter into Contracts:

A registered society can conduct legal transactions in its name. It can sign contracts, open bank accounts, and make financial operations.

Fundraising and Grants:

Registered societies can get grants, donations, or sponsorships from governments, NGOs, or private entities. They may also find it much easier to raise funds, as they are in an institutional context.

Tax Exemptions:

In most places, registered societies may be exempt from taxes. This applies to income from their nonprofit activities. They must follow the relevant laws.

Operational Transparency:

Registration usually means compiling and submitting records to regulators. This can lead to greater accountability and transparency in society. This can also lead to greater stakeholder trust, i.e., members, donors, and the public.

Organizational Structure:

The registration process helps manage and govern society. It does this by setting rules, guidelines, and objectives.

Perpetual Existence:

A registered society still exists, but its participants and officers change over time. It keeps the operation going and the society sustainable.

Registration of a Society in India

• At least 7 members or more can form a society. Only Indian individuals, companies, and registered societies can register the society's Memorandum of Association. This includes foreigners and nationals.
• As a partnership firm, i.e., a legal entity, the society can also be either unregistered or registered. Only registered societies can resist consigned properties or file an ensemble for the society.
• State governments maintain society registration. Only the state with a registered office can receive its application.
• For society registration, the founding members must first approve the name. Then, they must prepare the Society Memorandum and the Rules and Regulations.

Selection of a Name

Under the 1860 Society Act, a society's name must not be the same as or convertible to a registered society's name. Also, the proposed name should not imply endorsement by any state or the Government of India. It should also not invoke the Emblems and Names (Restriction of Use) Act of 1950.

Types of Society

National Level Society: It needs eight members from different states. One can perform it throughout India.
State-Level Society: The society needs up to seven people from the same state. The company limits the job location to that state only.

Eligibility Criteria for Society Registration

1. A society requires at least seven people to form.
2. The society's aims must be in the fields of Section 20 of the Societies Registration Act of 1860. They must be scientific, literary, charitable, or otherwise.
3. The subscriber members must agree on the MoA. It will include the society's objectives, rules, and regulations.
4. The Registrar of Joint Stock Companies must approve the MoA subscription. You need this to register the society under the Society Registration Act of 1860.
5. The Society must have a registered office for official communications.
6. The society needs a ruling body. President, secretary, and treasurer.
7. The society must keep proper accounts. An auditor must audit them once a year.

Documents Required for Society Registration

1.Memorandum of Association (MOA):

The MOA is an essential document. It must list the society's name and aims. It must also list the names, addresses, and jobs of its management members. It must also include the society's registered office address.

2. Rules and Regulations of Society:

This paper describes the society's framework. It covers membership, meeting rules, duties of officeholders, finances, amendments, and dissolution.

3. List of Governing Body Members:

For transparency, send info on the executive body members. Include their full names, signatures, addresses, and jobs.

4. Covering Letter:

A letter from all the founders. It confirms their desire to set up a society and apply for its registration.

5. Proof of Address:

Evidence of the society's registered office address. This can be a rent agreement, a NOC from the landlord, or utility bills (e.g., electricity, water).

6. ID proof of Governing Body Members:

Copies of Aadhaar, passport, or voter ID for all members.

7. Affidavit:

An affidavit from the society's president or secretary. It must state any relationship between the subscribers. It must confirm that the MOA and Rules and Regulations are correct.

8. Minutes of the First Meeting:

The society held its inaugural meeting. The members passed the Memorandum of Association and the Rules and Regulations. They then inaugurated the office bearers.

9. Declaration by the President:

A statement by the society's president. It expresses his or her voluntary assumption of the office in question.

10. Registration Fee:

The required registration fee, which is different for each state. The fee is usually paid with a demand draft or challan.

Benefits of Society Registration

• The Society enhances its position as a legally recognized corporation.
• A Society Registration grants access to various capabilities. Such as the right to trade, buy, rent, and lease real property.
• A society's membership may change over time. But, it will remain a separate organization.
• The corporate umbrella brings society under it. It also grants a tax exemption.
• If someone commits a crime, the authorities charge them with debt and obligations.
• Members who generate debt in pursuit of profit will have to reconcile themselves to that debt. Otherwise, they are not liable.
• The Incorporated Society Act 1908 sets some minimum requirements. The Society must follow them. This is to reassure its members.
• Society can open new bank accounts.
• Society earns its good name in front of both the forum and the authorities.

Dissolution of a Society

Several ways can dissolve a society.
1. Voluntary Dissolution: Members can dissolve the society if three-fifths agree to a resolution. This process must follow the procedures set out in the society’s Rules and Regulations.
2. Dissolution by Court Order: A court may dissolve a society for two reasons. It may do so for violating the Societies Registration Act or for illegal activities. In such cases, the court might appoint a liquidator to wind up the society's affairs.
3. Distribution of Assets: When a society dissolves, it does not distribute its assets among its members. The Societies Registration Act says to give these assets to a society with similar goals or to the government.

  • FAQ
1. How much time does it take to register a society?

It can take 30 to 90 days to register a society, depending on the state. This is after submitting a complete application.

Yes, a foreigner can join an Indian society. They must show valid ID and meet India's legal requirements.

Society registration costs in India vary from Rs. 15,000 to Rs. 25,000, depending on the state.

All societies under the Society Registration Act of 1860 are valid for 5 years only. After that, every society needs to renew itself.

The society's name must be unique. It should not conflict with any registered society or trademark. It is important to perform a name search with the Registrar of Societies.

Yes, family members can indeed form a society. Engaging non-family members is good practice to enhance transparency.

Yes, a registered society can operate in many states. But it must register as an All India Society and have reps from at least eight different states.

Yes, the Societies Registration Act can dissolve a society. After dissolution, the assets are usually given to a society with similar goals.

Though it's not a legal need for informal groups, registering can help. It provides legal recognition, a bank account, and access to grants and donations.

A registered society cannot undergo a direct conversion into a trust or company. But it can dissolve and transfer its assets to a new trust or company with similar goals.