What is Multi-State Cooperative Society?

calendar23 Jan, 2021
timeReading Time: 4 Minutes
Multi-State Cooperative Society

The Multi-State Cooperative Societies Bill received President’s assent on 3rd July 2002 and it came to be known as The Multi State Cooperative Societies Act 2002 (39 of 2002).

It is an Act to consolidate & amend law relating to co-operative societies with objects not limited to one State and serving interests of individuals in more than one State. It is to encourage the intentional development and majority rule working of co-agents as individuals’ organizations dependent on self-improvement and shared guide.

The Act also empowers the organizations to advance their monetary and social improvement. In this write-up, we are going to learn about Multi-State Cooperative Society.

What is Multi-State Cooperative Society?

The term Multi-State Cooperative Society has been defined under Section 3(p) of MSCS Act 2002. The definition states that multi-State co-operative society is a society which is registered or is deemed to be registered under this act.

What are the Various Types of Cooperative Society?

The Various Types of Cooperative Society are as follows:-

Types of Cooperative Society

Procedure for Registration of Multi State Cooperative Society

The registration procedure has been laid down in Section 5 of MSCS Act[1]. This Section lays down that No multi-State co-operative can be registered under this act unless and until its main objective is to serve the members not only in one state but members in more than one state and also the bye- laws must provide for the social and economic betterment of all its members.

This can be done through society which shall be registered under this self-help and mutual aid in accordance with the co-operative principles. Furthermore, Section 6 of MSCS Act 2002 provides for application of registration which shall be made to the Central Registrar in such form with such particulars as may be prescribed.

Application has to be Signed

  • It is required to be signed by at least fifty persons from each of the concerned state
  • It has to be authorized by representatives on behalf of at least five such societies as are not registered in the same state
  • It has to be authorized by representatives of each society
  • The application should be accompanied by 4 copies of the proposed bye-laws of the multi-state cooperative society and the individual by whom or on whose behalf such application is made should provide such information in regard to society as the registrar may need.

Process for Registration

Following are the steps to register a Co-operative Society:-

  • 10 persons are essential who are willing to form a Society;
  • Provisional Committee and a chief Promoter has to be elected from those individuals;
  • Name of the Society has to be unique.
  • An application is essential to be made to relevant Authority for name reservation and for authorizing the reserved name;
  • Entrance fees as well as Share Capital has to be collected from the potential members.
  • As per the directions of the Authority, a bank account is required to be opened in the name of the proposed Society;
  • Registration fees is required to be deposited with Reserve Bank of India (RBI) and get receipt Challan.
  • An application has to be submitted to Registrar of Societies of the concerned Municipal Division for Society Registration.

Required Documents for Setting up a Multi-State Cooperative Society

Documents required for registration of Multi State Cooperative Society are as follows-

  • A duly signed four copies of proposed Bye-Laws must be submitted ;
  • List of contributors to the share capital as well as the list of contributors and the details of contribution of capital;
  • A certificate from the bank which shows the credit balance in the account of the desired cooperative society;
  • A scheme showing indicating financial reasonability of the proposed society and further express that enlistment of society will be valuable for the social and monetary advancement of the individuals.
  • A resolution which provides the name and address of chief promoter;
  • A copy of resolution in the favor of person who is authorized to make the Bye-Laws.

When is Application supposed to have been accepted?

  • The application can be disposed of by Registrar within a period of 4 months
  • If the registration application is not disposed of within a period of 4 months then the application shall be deemed to have been accepted for registration
  • Later, a registration certificate shall be issued.

Process for Passing the Refusal Order

  • When the Central Registrar refuses to list a Multi State co-operative society, he will provide the opportunity to the society to be heard before passing such instructions;
  • The registrar has to communicate, within a period of 4 months from the date of receipt of the application for incorporation. The order of refusal together with the reasons provided to the applicants, as the case may be.

Other Relevant Provisions

Under Section 8 of the MSCS Act, it is mentioned that a certificate of registration will be issued by the Central Registrar which will be a conclusive evidence of registration of the society.

What are the Benefits of Registering Multi-State Cooperative Society?

The Benefits of Registering Multi State Cooperative Society are as follows-

Chapter VI of MSCS Act offers for privileges of Multi-State Cooperative society that are stated as follows:-

  • A Multi-State Cooperative Society can charge and set-off in regard of offer or commitment or interest of individuals.
  • Share of contribution or interest is not liable as an addition to the Society. Any registered or list of members or shares reserved by any multi-State co-operative society should be prima facie evidence of-
  1. The date on which any individual entered in such register or list to become a member;
  2. Or the date on which any such individual concluded to be a member.
  • It likewise provides for an exclusion from mandatory enrollment of instruments, allowance from compensation to meet the case of cooperative society in specific cases and encourages governments to help them.


Through the above discussions we have come to know that what a Multi State Cooperative society is, how it can be registered, what are the documents required and what are the benefits that can be gained from a registering a Multi-State Cooperative Society.

Read our article:Taxability for Co-operative Societies: A Complete Outlook on Annual Returns

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