Overview of Society Registration under the Societies Registration Act, 1860
The piece of equipment of "society" evolved to complete the need of an organization of non-commercial character for the sustainability of repeated charitable activities like education, art, religion, culture-music, and sport, etc. Associations or societies are fashioned to help further these causes since they work on a non-profit base. The call for a legal entity is to own, possess and handle the finances and assets for the accomplishment of liberal or promotional objects, as laid behind by donors, is the result of these actions. Moreover, a society can be shaped to realize this end.
Significances of Society Registration
Society is an institution of persons who come together to on purpose and co-operated on mutual consent to attain a universal objective. Society Registration Act 1860 governs the procedures of action of a society registered in India. Members of the community shall preserve the mutual thoughtfulness and follow the guidelines of this Act to keep up the harmony to increase and add to social welfare.
The Purpose for which Societies are Formed
Societies are regulated for the promotion of literature, science or the fine arts and the diffusion of useful knowledge/political education or charitable purposes. Section 20 of the principal Act specifies the following objectives for which society registration can be done under the Act:
- Funding for charitable assistance
- Formation of Military orphan funds
- Societies recognized at the General Presidencies of India
- Endorsement of Science,
- Fine Arts,
- commands or diffusion of useful knowledge,
- Dissemination of political education,
- groundwork or maintenance of libraries or reading rooms,
- Public museum and galleries of paintings,
- Works of Act,
- Collections of innate history,
- Mechanical and philosophical inventions,
Prohibition on Profit Motives
For a society enrolled under Societies Registration Act, 1860, profit motive for personal use is prohibited. The profits get of such a society should necessarily be back the benefit in the working of such an organization.
Benefits of Enrolling the Society Registration
- Each certified society procures legal status.
- Registered society can legitimately open its current account
- Can get delegation and regards under the Income Tax Act
- Certified society gets the legal status that is necessary for statutory vesting of the wealth of society
- Registered society gets legal identification before all forums and authorities
- Members of the registered society are constitutionally bound to the same extent as if they had signed the Memorandum
- A certified society can sue or sued.
The Integrity of Society Registration and Non-Registration of Society
The Societies Registration Act, 1860 lays down the method for society registration for various bonafide intentions. The listing gives the society a legal status and is imperative
- To avail bank accounts,
- Receiving certification and favors under the Income Tax Act,
- Legal vesting properties of societies, and
- Gives identification to the society at all gatherings and before all jurisdictions.
After society registration, it and its members get bound to the same area, as if each member had endorsed the memorandum. A society enrolled under this Act must restrain its activities to the sphere covered by its objects. Any tax inflicted on society is one forced on society and not towards its members. Moreover, any society registered under the Act enjoys the status of a legal entity apart from the members constituting it. In the loss of registration, all the trustees in charge of the capital have alone a legal status and the society owns no legal status, and, therefore, it cannot sue and be sued. A non-registered society may exist in fact but not in law. An unregistered society cannot claim benefits under the Income-tax Act.
Sufficiency of Eligibility for Society Registration
Registered Societies are similar to a partnership firm. Moreover, these societies enjoy divergent merits than that of an unregistered organization. There must be a least of 7 members or more for creating community. Following members are allowed to enroll for Memorandum of society: Besides person, the following bodies are eligible to form an association by contributing to the Memorandum of a society:
- Partnership firm
- Limited company
- Registered society
- Minors not eligible
- Foreign companies
- Indian companies
- Other registered society
Glossary of Checklist for Society Registration
- Covering letter entreating for society registration stating in the body of message various records annexed to it.
- Memorandum of Association in copy along with a verified copy.
- In matters of existing places of worship like a temple, masjid, gurdwara, etc. sufficient documentary proof authenticating legal competence and control of applicant society over such sites should be filed.
- Affidavit valued by President or Secretary of the service.
- Documentary proof of house tax receipt, rent receipt of the registered office of a society or 'No Objection Certificate' from the keeper of the society.
- PAN identification of all the members of the society
- Residency proof of members such as 'Aadhar card/electricity bill/bank statement/gas bill' etc
- List of all the members like name, address, contact details, etc.
- Copy of rules & regulations of society,
- Minutes of the previous meeting of society confirming the society registration.
- Declaration by the president of the society stating his willingness and competency to hold the post of president
Procedure for Online Society Registration
Connect to concerned state authority for society registration online as the state executives deal with society registration.
- The name of the society shall be different and not resembling the certified society as per the guidelines of the Indian Society Act. The name shall be commonly agreed and admitted by all the members. No title shall be prevented under statutory provisions of any act nor shall it violate a requirement of any law.
- After deciding the title, the society shall have a memorandum of association that outlines the rules and regulations to be adhered to by the society and its members. The protocol shall be signed and attested by the members along with witness by oath commissioner, notary and first-class magistrate with their stamp and complete address.
- Apply accompanying with the below-stated documents (Two copies of each document) to the Registrar of the society of the concerned state with authority for society registration. Authority shall sign the first copy as confirmation and shall return the second copy to the applicant on permission. After receipt of the request, the Registrar shall examine the demand for its accuracy and on support shall allot Certificate of Registration by designating registration number on it.
Society Registration in India
The Certification of society should be in effect under the Societies Registration Act. Once the persons intending to form a society have settled upon the name of the society and have planned a draft of the memorandum and rules and regulations the society the following methods would have to be selected for getting the society manifested:
Manifestation of Memorandum of Association
MOA, i.e. Memorandum of Association, is a document representing and describing the purpose of its continuation and operation. It defines the authorised range of force and performance. Supervision is very much essential to draft this document which will mainly be required for total attainment of the objects. All subscribers should sign each page of the memorandum, and the signature should get testified by an Oath Commissioner, Notary Public, Gazetted Officer, Advocate, Chartered Accountant, Magistrate First Class with their rubber/official stamp and complete address.
Format & Guidelines for Drafting Memorandum of Association
Designation of Society
- The Registrar of Society may be approximated with alternative names to determine whether the same is not defective and not being used by other existing societies,
- It should not imply obscenity or the virtue and honour
- It should be not likely to raise disharmony or feelings of hostility or hatred among community or associations.
- It should not match with the name of surviving enrolled society
- It may achieve with the expression 'trust.'
- The title should be such that it does not draw the prerequisites of images and names 'Prevention of improper use' Act, 1950.
- It should not suggest or calculated to mean the patronage of the Government of India or intermediary with the local authority or any corporation or body appointed by the government following any law for the time standing in force.
- The Registrar has the capability or power to refuse registration if the name is inconsistent with these guidelines.
Registered Office of the Society
The principal Act does not require the designation of the address of the certified office in the Memorandum of Association of the society; it is always more salutary to mention the location of the registered office in the Memorandum so that correspondence or notices may be commuted to the society.
Aspirations of the Society
The society once formed has to act within the structure of the 'object clause'. Any unfolding of the society outside the meaning of the object clause may get declared as beyond the authorized scope of the society besides being NULL & VOID. Nevertheless, it is desirable to draft the object clause with full attention and care.
Name & Address of Governors, Councils, Directors of Committee
The Act requires that the Memorandum should include the names, addresses and profession of the above captioned. Whether a member is termed a governor or director or president, it does not affect his status. These office bearers have a separate existence from individual members. The board and management of society are interested in them jointly.
Rules & Regulations of the Society
The standards help the authority in carrying out the objects of the society. They are obligatory on the members of society. The rules should get approved by at least three members of the regulatory body.
Accounts & Audit
The societies own funds and properties provided to them by the members or by other persons (by way of donation, etc.). The funds and resources are involved in the attainment of objects for which the society gets formed. The members of the regulatory body are the governors who apply the funds. It graces certainty that the societies keep proper account books and get them audited and exhibit them to the members at the general meeting and file them with the Registrar for analysis. Every society should get its statements audited once a year by a duly equipped auditor and have balance sheet developed by him. The auditor should present the report showing the exact date of commercial activities of the society.
Articles of Association
AOA also have to be developed, which will incorporate the following information:
- Rules and ordinances by which the working of the society will get governed and the preservation of day to day activities,
- It will include the rules for practicing the membership of the society
- The features about the meetings of the society and the frequency with which they are going to hold should be mentioned
- Data about the Auditors
- Forms of Arbitration in the matter of any dispute within the members of the society
- Ways for the dismissal of the society should get mentioned.
Execution of Decree against Societies
Any decree passed corresponding any person or officer of the society, who represents the society in the legal proceeding, cannot be enforced against the personal property of such person. The capital of the association shall only be liable to pay for the decree passed against a society. This assurance is given to the office-bearers of the association under the principal Act.
Prosecutions and Litigations
As each society is a legal existence separate from its members, it is capable of filing suits fronting any person or any member. Similarly, the costumes can also be brought upon society. The registered society can file a lawsuit wherever in India and any state, even if it not registered in that particular state.
Distinctiveness from Companies under Section 8 of the Companies Act, 2013
Simple and easy
Selection is not difficult
Should get approved from the Registrar of the Companies
Not much restrictions imposed under the Act
Provisions of the Companies Act have to complied with and/or difficult and lengthy, rigid and time consuming
Has to be held as per provisions in the Act.
Has to be held as per provisions of the Companies Act, 2013
Very few offences and penalties have been prescribed
Provisions under the Companies Act are more severe and attract more penalties.
Registered societies enjoy identical reputation as companies
Companies benefit from reputation of status
Frequently Asked Questions
Individual, Foreigners, Companies, Partnership firm, Other certified organisation.
Yes, there are the following rights available to the members of society:
- They are entitled to vote
- They have the right to receive the notice of every meeting
- They have the right to receive a copy of bye-laws
- They have the right to receive financial statements
- They have the right to attend general meetings of societies
No, members of society are not entitled to profit incurred by the organisation in any form.
Quorum’ implies the minimum number of members who must be present in the meeting to make the proceedings of the conference valid
General Body of a society comprises of all the members who have subscribed to the memorandum of the organisation.
Memorandum can be reformed by approval in an extraordinary General Body Meeting called for the purpose after giving due notice. By permission, another extraordinary General Body Meeting called after 30 days. Byelaws can be amended by approval of the majority of members in Special General Body Meeting. Such amended shall be filed with the Registrar within one month.
Rs.300/- per annum.
No. You can register an NGO in a rented property with a rested lease deed.
Yes, a government servant can become a trustee in an Indian trust.
There is a special provision for people in the business. If they donate to those NGOs having 35ac registration, they get a tax rebate of 100%.