Eligibility and process of Registration of Society

Introduction: A society in easy words is a group of people who have a continuous social interactions or it is a large group of people who share the same social or spatial territory. Societies are characterized by patterns of relationships between individuals who share a distinctive culture and institutions.

The Societies Registration Act of 1860, which is a legislative framework in India, facilitates the registration of entities aiming to serve societal interests. A society, as per the act, is an amalgamation or coming together of individuals who are united by the mutual agreement to collectively deliberate, govern, and collaborate with each other towards communal objectives and benefits.

Example, I am the member of RHS society, the main objective of the society is to make people aware about their legal rights.

Hence, we can say such societies play an important role in development of society, getting engaged in various charitable activities which might be related to education, healthcare, employment, and more. The registration process under this act directs the society to follow the specific procedures, so that they operate properly and ensure the proper legal compliances.

Few days ago The Economics Times reported that 3 new cooperative societies will help solve agricultural problems which will help farmers to increase their income, UNESCO in New Delhi recently celebrated the achievements of women artists and entrepreneurs, and provided a platform for them to share their stories about gender equality, digital inclusion, and economic empowerment and so on.Hence the main objectives of society is to streamline the legal requirements for charitable companies which are encompassing of literature, fine arts, science, and public awareness, each state has since formulated its own regulations governing society formation and operations.

Notably, the jurisdiction of a society’s activities rest with the state of its registration, E.g. RHS as I stated above is registered in Rajasthan, so Jurisdiction for this society is in Rajasthan itself.

I already published my articles on Taxguru about section 8 company and Trust which are two other forms of establishment of NGO’s.

So you might be wandering, what might be the advantages of society registration.

There is a concept of business-entity concept which apply on society, which means every society is legally separate from its members, in other words a society and an individual is a distinct person. This means that the society on its own can take legal action against anyone, including its own members. If the society is registered, it gains a special legal status as per the Indian laws.

For example, you want to open a bank account with the name of society or need to do Income tax registration, the registration of society allows you to open bank accounts and obtain necessary approvals under the Income Tax Act in the name of society.

A registered society have an indefinite existence, although members of a society do change over time, but the work or moto of the same continues to exist until its registration is cancelled.

Societies also enjoys some tax benefits by applying for certificates at income tax portal which are 12AA and 80G by which members get benefits on their contributions, hence in short we can say societies and their investors can receive tax deductions.

What is the fees for society incorporation?

I am talking about fees other than professional one, once the memorandum and certified copy are filed, the Registrar will officially certify that the society after which it is officially registered under this Act. For this registration, a fee of fifty rupees is required to be paid to the Registrar. However, the State Government may direct a smaller fee if necessary. the fees which is collected are to be accounted for to the State Government.

What minimum requirements shall we keep in mind?

To register a society under the Societies Registration Act, certain minimum requirements must be met. Firstly, there must be at least seven members who wish to form the society. These members must be individuals who come together with the common objective of social welfare, which should be clearly stated in the society’s memorandum of association.

Important Documents required for a Society Registration?

First of all there shall be a list of all members who are involved in forming a society, containing the PAN card of all the members who are proposed for registration of society, A covering letter or we can say rules and regulations of society containing objective behind formation of society, Address proof of society are required, if it is owned then a Registry Copy and Electricity Bill is required but it is Rented then Rent Agreement and Electricity Bill is required, secondly for individual address proof, the Aadhar card of all the members who are proposed for registration of society is required.

What is the Process of Registration of Society in India?

First step is documentation, Proper documentation is crucial, as any errors or omissions could result in the rejection of the entire application. Therefore, it is advisable to gather all necessary documents which I mentioned above beforehand to minimize the risk of rejection.

Next, selecting a unique name for the society is imperative. The chosen name should clearly convey the society’s purpose and must not replicate the name of any existing society or trademark. Naming conflicts could invalidate the application or infringe on intellectual property rights, leading to complications.

After the selection of a suitable name for the society, we need to draf the Memorandum of Association and the Rules & Regulations for the society. These documents mention the society’s objectives and internal management guidelines, respectively. The MoA specifies the primary purpose of the society, while the rules govern its internal operations, including meeting protocols and the roles to be played by key office bearers.

Once the MoA and Rules & Regulations are prepared, the society can proceed with the application for registration. This includes submitting the application, along with the duly signed MoA, rules, affidavit declarations, and KYC documents of society members and officials, to the Registrar of Societies. The registration fee varies across different states in India, as the Registrar of Societies as I said earlier, it operates under state government jurisdiction. The status of the application can typically be tracked on the official website of the Ministry of Corporate Affairs.

Upon successful submission, the Registrar of Societies evaluates the application and, if satisfied, issues the Certificate of Society Registration. This certificate serves as conclusive proof of the society’s official registration. The entire process of society registration typically takes around a month to complete.

What is the Purpose of Society Registration?

Under Section 20 of the Societies Act, 1860, a society may be registered in India for noble purposes aimed at public improvement. These include the promotion of artistic knowledge, the extension of political education, the provision of charitable aid, the promotion of science and literature, the establishment of a military orphan fund, the maintenance of a gallery or public museum or establishing, building reading rooms like libraries, promoting or disseminating useful knowledge. Such labels serve as vehicles for promoting cultural achievement, educational achievement, and philanthropy, and contribute significantly to the overall development of society.

What is acceptable Name for a Society?

The Prevention of Inappropriate Uses Act of 1950 provided that no two states could have the same name to prevent confusion and abuse. However, state actions do not have the same limitations, which can lead to potential naming conflicts. Certain names are not eligible for registration of associations, including official marks or names with official titles that are not prohibited by the State or Central Government or have already been registered through a Board of Directors. Moreover, names similar to those of Indian institutes or universities cannot be listed to avoid any misrepresentation or confusion. These rules are intended to provide clarity, prevent abuse, and maintain the integrity of public names, and to ensure transparency and accountability in the registration process.

Annual compliance and dissolution

Organizations registered under the Societies Registration Act are required to submit a complete list of executive committee members including their names, addresses and occupations for corporate registration every year.

This requirement ensures transparency and accountability in the public governance process, and allows regulators to maintain up-to-date records of key officials. Additionally, in the event of dissolution of the partnership, strict provisions mean that no member can receive any benefits.

Instead, after all debts and liabilities have been settled, any remaining assets should not be distributed among the members. Instead, immigration is compulsory, determined by three-fifths of the members present or by a court in the absence of such a majority.

Importantly, this article does not apply to partnerships formed as joint ventures, which operate under specific legal structures and ownership structures This structure protects the assets and integrity of partnerships, and it ensures that even when their wealth is liquidated, they continue to direct their charitable or public purposes.

In conclusion, society registration in India under the Societies Registration Act of 1860 serves as a crucial mechanism for fostering societal development and promoting noble causes. Through documentation, adherence to legal procedures, and fulfilment of minimum requirements, societies can obtain legal recognition and operate effectively towards their objectives. The registration process, the annual compliance governed by the act, ensures transparency, accountability, and the proper utilization of resources for societal welfare. Ultimately, society registration empowers communities to collectively address social challenges and contribute positively to the holistic development of society.