What is Society Registration in India
Society is an association of persons who came together to deliberate and act jointly on mutual consent to attain a common objective. Societies are registered to attain to promote social welfare such as education, arts, culture, charity, religion, sports, music, etc.
Society Registration Act 1860 governs the procedure of registration & operation of a society registered in India. Members of the society shall maintain the mutual understanding and follow the guidelines of this act to maintain the harmony to develop and enhance social welfare.
What are Objectives of Society Registration in India
Section 20 of Society Act 1860 defines the following purposes for getting society registered in India:
- Promoting fine arts
- Promoting political education
- Providing charitable assistance
- Promotion of science and literature
- Creating funds for military orphan
- Maintaining or developing the public museum
- Maintain or developing libraries
- Promoting or maintaining education or useful knowledge.
What is The Registration Procedure for Online Society Registration
Societies can be registered or unregistered, similar to a partnership firm. However, registered society can enjoy several advantages over unregistered society. There must be a minimum of 7 members or more for creating society. Following members are allowed to register for Memorandum of society:
- Indian resident individual
- Foreign companies
- Indian companies
- Other registered society
Apply to concerned state authority for society registration online as the state authorities deal with society registration. Following are the five steps for Society registration:
a) The name of the society shall be unique and not resembling the registered society as per the guidelines of the Indian Society Act. The name shall be mutually agreed and accepted by all the members. No name shall be prohibited under statutory provisions of any act nor shall it violate a provision of any law.
b) After deciding the name, the society shall have a memorandum of association that frames the rules and regulations to be adhered to by the society and its members. The memorandum 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.
c) Complete the following documents and attach them with the application for society registration:
- PAN of every member
- Residence proof of members such as Aadhar card/electricity bill/bank statement/gas bill etc
- Covering letter that mentions the objective and purpose for the society registration and it shall be signed by all the members
- Complete list of all the members like name, address, contact details, etc.
- Certified copy and duplicate copy of the memorandum of association
- Copy of rules & regulations of society signed all the members
- Registered office address proof such as electricity bill, NOC by the landlord, etc
- Affidavit declaring the relationship amongst subscribers vowed by secretary or president of the society
- Minutes of the previous meeting of society confirming the registration of the society.
- Declaration by the president of the society stating his willingness and competency to hold the post of president
d) Apply along with the above-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 acknowledgement and shall return the second copy to the applicant on approval. After receipt of the application, the registrar shall scrutinize the application for its correctness and on approval shall allot Certificate of Registration by allotting registration number on it.
Effects of Registering the Society
Following are the effects and advantages a registered society gets:
- A registered society gets legal status.
- Registered society can legally open its current account
- Can get registration and approvals under the Income Tax Act with an ease
- Registered society gets the legal status that is essential for lawful vesting of properties of society
- Registered society gets legal recognition before all forums and authorities
- Members of the registered society are legally bound to the same extent as if they had signed the memorandum
- A registered society enjoys a separate legal entity.
- Registered society is a legal person that can acquire and hold the property in its name
- A registered society can sue or can be sued.
Books and Accounts of Registered Society
The registered society holds the property and funds in its name that is provided to them by members or any other person by donation or other similar nature. Providers of funds and properties expect the society to attain its objective for which the society is registered. Thus, society must maintain the books of account and a proper statement which shall be audited regularly. Audited statements shall be presented before the members at the general meeting which shall be filed with Registrar for verification. Once in a year, accounts shall be audited by a qualified auditor and must prepare a balance sheet.