A society is an association of several individuals, combined by mutual agreement, to deliberate, govern and co-operate for some common purpose. Societies are generally registered for the advancement of charitable activities such as sports, music, culture, religion, art, education, etc.
A society is the simplest form of a Non Governmental Organisation in India and can be registered to operate on state level or national level for educational, charitable, religious, welfare or for promotion of art, music, culture, etc., In India, the registration of a society is done under The Societies Registration Act, 1860.
In India, society registration works on the principle of regulating and managing the registration and other aspects related to societies.
There are two types of society, one for the National Level Society and the other for the State Level Society. A minimum of seven people must come together with a common goal of becoming a society. However, in the case of a national society, the members / desired persons must represent seven different states. The process of registering NGOs as a society differs from state to state.
Key Points:
DOCUMENTS REQUIRED FOR SOCIETY REGISTRATION :
SOCIETY REGISTRATION CERTIFICATE
1. Easy Formation:
Compared to the formation of a company, formation of a cooperative society is easy. Any ten adult persons can voluntarily form themselves into an association and get it registered with the Registrar of Co-operatives. Formation of a cooperative society also does not involve long and complicated legal formalities.
2. Limited Liability:
Like company form of ownership, the liability of members is limited to the extent of their capital in the cooperative societies.
3. Perpetual Existence:
A cooperative society has a separate legal entity. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society.
4. Social Service:
The basic philosophy of cooperatives is self-help and mutual help. Thus, cooperatives foster fellow feeling among their members and inculcate moral values in them for a better living.
5. Open Membership:
The membership of cooperative societies is open to all irrespective of caste, colour, creed and economic status. There is no limit on maximum members.
6. Tax Advantage:
Unlike other three forms of business ownership, a cooperative society is exempted from income-tax and surcharge on its earnings up to a certain limit. Besides, it is also exempted from stamp duty and registration fee.
7. State Assistance:
Government has adopted cooperatives as an effective instrument of socio-economic change. Hence, the Government offers a number of grants, loans and financial assistance to the cooperative societies – to make their working more effective.
8. Democratic Management:
The management of cooperative society is entrusted to the managing committee duly elected by the members on the basis of ‘one-member one -vote’ irrespective of the number of shares held by them. The proxy is not allowed in cooperative societies. Thus, the management in cooperatives is democratic.
1-2 MONTHS
1. WHO CAN BE THE MEMBERS OF A SOCIETY?
Members as stated in the memorandum shall be a person who has been admitted in accordance with the rules and regulations of the company and who has paid the subscription and signed the list of members. A person shall not be entitled to vote or to be counted as a member in any of the proceedings of a company whose subscription is in arrears (the time limit for receipt of a subscription should generally be laid down in the rules and regulations of the company).
2, What are MOA & AOA?
Memorandum of Association has to be prepared which will contain the following clauses and information:
Articles of Association also have to be prepared which will contain the following information:
3. What's the name criteria of a society?
Selection of a name When selecting a name for the registration of a company, it is vital to understand that, under the Society Act, 1860, the same or similar name of a company currently registered will not be allowed. Moreover, the proposed name does not imply any patronage of the State Government or Government of India, nor does it fascinate the provisions of the Emblem & Names Act, 1950.
4. What are the compliances after setting up a Society?
5. WHO IS THE SIGNING AUTHORITY OF A SOCIETY?
In general all the documents of the society to be filed with the registrar of the societies should be signed by the President or the Chairman or the Secretary of the Society or by any other person specifically authorized in this behalf.
6. Can We Revise MOA & Bye Laws of Society?
The Memorandum may be revised by subscription to a special General Body Meeting called for the purpose after giving due notice and by approval of another Special General Body Meeting called again after 30 days. By-laws may be amended by the approval of a majority of the members of the Special General Body Meeting. Such corrected by-laws are to be filed with the Registrar within one month.
7. What are the objectives of Society for which it can be registered?
Association can be formed for the following reasons :
8. What is the Minimum & maximum number of members required or allowed for society?
A minimum number of 7 persons who are above 18 years of age can form a society or an association. There is no such limit for maximum number of persons.
