A society is a group of enthusiastic volunteers that acts jointly for the charitable cause. Society is built to develop knowledge of the specific community and works for the upliftment of various fields such as fine arts, science, and literature. Apart from that, Society also serves the following purpose:
- Founding libraries where it is required.
- Establishing public museums, reading rooms, a painting gallery.
- Preservation of natural history
- Accumulating and preserving mechanical & philosophical inventions.
Advantages of Society Registration
A registered society is viewed as a separate legal entity, and it is granted with certain authority that allows the following purposes. Those are as follows:-
- Purchase a certain property without legal hassles. Registered Society encounters lesser compliances while vesting the property in its own name.
- File cases against the defaulters or in case of a dispute. The registered Society holds the right to enforce proceedings regarding legal affairs in the court.
- Avail tax exemption from income tax. The Society working under the act is eligible to file income tax return.
- Carry fewer liabilities.
- Shift the old property to another entity without engaging with daunting documentation or stringent compliances.
- Protect the properties of the incorporated body against the opponent seeking ownership of the same.
- Bypasses the provisions that discourage the opening of a bank account in its name.
- Accumulate funds from outside sources.
Registered Society has a right to vest the property in its name, and it doesn’t attract any provision related to the transfer of ownership. A society managed by the overseas candidates in India is still deemed as in Indian Society, and it follows all the provisions of Indian laws.
As per law, unregistered Society is not viewed as a separate legal entity. Thus, such entities don’t get the opportunity to reap the above benefits. The unregistered Society won’t cement its place in the legal framework until it opts for registration. To be precise, there are endless Advantages of Society Registration to enable the Society to perform without legal hassle.
Prominent traits of the Society
- Societies Registration Act is the governing body that controls the conduct of the societies in India
- A minimum of seven members is required for the establishment of Society.
- An MOA* needs to furnish by the Society’s founding members to the registrar of societies in the state where the Society is located. MOA is a legal declaration the incorporates all the elements, including the objectives that reflect the core functionality of the Society and its members.
- The societies under Section 25 have fewer legal obligations to comply with.
- Societies hold the right to renew the existing workforce working for a common cause.
- Society can be dissolved easily without interfering with complicated compliance or cumbersome paperwork.
- The Society operates in a democratic framework that discourages monopolization within the hierarchy.
- Due to democratic procedures, it easy for the founding members to get rid of opposing entities creating disputes within Society.
Drawbacks of an Unregistered Society
- Society cannot act as a separate legal entity until and unless it gets registered under the Societies Registration Act, 1860.
- In the absence of registration, the Society cannot hold the right to enforce any legal proceeding in the court for the settlement of legal disputes.
- Unregistered societies cannot avail tax exemptions mentioned under Income Tax Act.
- Society working outside the canopy of the law is viewed as an immaterial entity.
- The shifting of properties in the name of the Society is an unrealistic proposition for unregistered Society.
Here’s the procedure to avail Society Registration
- First, the core member needs to finalize the name of Society by mutual consent.
- The members have to enact MOA and outline the Society’s code of conduct.
- Next, arrange the following documents seeking approval of its founding members:
- Covering letter representing the formal request of registration. It needs to be authenticated by the Society’s members through signature.
- Certified & duplicate copy of the MOA:- A society that enacts MOA* contains the following information. Those are as follows:-
- Society name decided with the mutual consent of the founding members.
- Objective illustrating the role of Society in the context of its work.
- Name, designation, and address of the directors, council, or governing body.
- A copy of the legal document containing Society’s rule and regulation. A copy of the same is also required, and the founding members should sign it.
- Original copy of the affidavit illustrating the secretary’s relationship with the subscribers.
- Copy of evidence providing address proof of the Society.
- These documents, in combination, shall be furnished to the registrar of societies.
- The authority will then scrutinize the documents.
Key points regarding Advantages of Society Registration
- Unregistered Society is less reliable and vulnerable to dissolution.
- Advantages of Society Registration are practically endless and make Society more resilient in terms of operation.
- It is mandated that the registered Society must file ITR in the predetermined time frame.
- Society under Societies Registration Act, 1860, encounters lesser compliance and reaps tax exemption.
- The founding partners should decide Society’s name through the mutual agreement.
Conclusion for Advantages of Society Registration
Society is a constitutional body that driven by the effort of volunteers who seek development and nothing else. Registering under the law can enable Society to works at full throttle and reap benefits in terms of taxation and legal obligations. Hence, we can conclude that overlooking registration is not a smart move at all. Society under the Societies Registration Act of 1860 can enjoy endless relaxation from the governing bodies and income tax act. Call our CorpBiz experts in case if you seek assistance in the context of Society Registration or Advantages of Society Registration, we will be obliged to help you.
Read our article: By-Laws of Society Registration: A Comprehensive Guide