Society is a group of people who are united for a common purpose or a charitable cause. Society registration generally pertains to charitable activities. ”The Societies Registration Act, 1860 is the law that governs the registration of societies in India.”
The purpose behind Society Registration can be underlined as it empowers to give a boost to legal states of society. It likewise assists society with getting legal status in India. As such, it turns into a legal entity.
Advantages of Registering a Society:
- A society becomes legally recognized as an organization.
- Sell, buy, rent, and right to lease are the facilities that can be availed by a Society.
- Society memberships can change, but their status as a separate entity remains the same.
- Incorporated societies are eligible for income tax exemption.
- The members are held liable for debts and obligations in the event of unlawful activities.
- In the case of profit, the members are held liable if they incur debts and obligations for the purpose of obtaining money, otherwise, the members cannot be held liable.
- An Incorporated Society is required to meet minimum requirements that are set by the Societies Act, assuring members of the Society of compliance.
- Bank accounts should get opened by Society.
- Society gets recognized by Forums as well as Authorities.
Who is eligible for Society Registration?
In Society Registration Act, 1860 there is a set of lists for eligible candidates. For creating a society minimum of 7 or more members are required.
- List of members who can register for the Memorandum of a Society:
- Foreigners or a non-resident of India (NRI)
- A Partnership Firms
- Limited Companies
- Registered Societies
- Foreign & Indian Companies
Note: A minor who is under the age of 18 is not eligible for the registration of the society.
Significance of Society Registration in India:
– Section 20 of the Societies Registration Act, 1860 characterizes the principal purposes to incorporate a Society:
- For the grant of charitable assistance.
- Make Military Orphan reserves.
- For the promotion of Science, Literature and Fine Arts.
- Promotion of Political Education and valuable information.
- Establishment and support of Reading Rooms or Libraries, Galleries or Public Museum.
Registration of a Society:
The minimum number of members for a Society is seven. In addition to Indian citizens, companies, foreign nationals, and other registered societies may register for the association’s memorandum of association.
A society can be either unregistered or registered, just like a partnership. But only registered societies are able to withstand consigned properties and/or assembly proceedings filed against or by them.
Registration of organisations is handled by state governments. A society registration application must therefore be made to the specific authority for the state where the registered office of the organisation is located. Members of society must agree on the name first, then prepare the Memorandum and Rules & Regulations of the society before registering the society.
Name Selection –
Choosing a name for the registration of the society should be according to the Society Act, 1860,
Identical or similar names to those of an existing society will not be allowed.
Memorandum of Association –
The Memorandum of Association and Rules & Regulations of the Society must be signed by every founding member, witnessed by a Gazetted Officer, Notary Public, Chartered Accountant, Oath Commissioner, Advocate, Magistrate first-class or Chartered Accountant with their official stamp and complete address.
The name of society and the object of society must be listed in the memorandum. In addition, it contains information about members, such as names, addresses, designations, and occupations.
Documents requirement for Societies Registration:
- PAN Card –
A Pan card of every member of the proposed society must be submitted along with the application.
- Name of the society;
- Proof of the office’s address;
- As proof of identity, the driving license/Aadhaar/Voter ID/Passport of each of the nine members of the Society;
- Two copies of the Memorandum of Association:-
The memorandum of association should include the following clauses and information:
- The work and the objectives of the society.
- The details of the members.
- The address of the society’s registered office will be included.
- Bylaws of the Society (two copies).