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This article is written by Arunima who is pursuing a Certificate Course in  Introduction to Legal Drafting: Contracts, Petitions, Opinions & Articles from LawSikho.

Introduction

As the nation develops and grows each day, equal importance should be given to all regions in all genres. However, it is an important initiative towards helping people to fully prioritize in various fields. The best approach to the advancement and recognition of any field is to create groups and societies that understand the skills and talents of individuals to help them grow bigger, better and appreciated, and to do things beyond the standards and definitions of those around them.

In India, Registration of Society works on the doctrine of management and regulation of registration and other aspects related to societies. Society registration is being done to promote the development of science, art, technology and charity in a way. This article mainly focuses on the processes of registration of societies in India. In order to maintain harmony among the society and to achieve development, there should always be mutual understanding among all the members of the society. 

What is Society?

A society can be defined as a company or association of individuals (generally unaffiliated) together with the mutual consent to deliberate, determine and act for the same common purpose or The individual’s group who volunteer Come together to rule from and do cooperative work for some communal and charitable purpose. The Societies Registration Act, 1860, registered a “society” which has been accepted by various state governments with or without further amendment. If you want to set up a society, then you should be aware of the process required for registration of the society.

Societies Act, 1860

The Societies Registration Act, 1860 was found in India on 21 May 1860. The Societies Registration Act was enacted under British rule in India but is still largely applicable in India. The Societies Registration Act, 1860 deals with procedure regarding laws and regulations of Societies Registration in India and its functioning in India.

According to the Societies Registration Act, 1860 defines “A society as an association of persons united together by mutual consent to deliberate, determine and act jointly for some common purpose. Societies are usually formed for the promotion of charitable activities like education, religion, art and culture, music and sports activities etc”.

Objective of Society Registration

Registration of society can be done for free education, free treatment, literature, development of fine arts, science or literature or for the spread of object knowledge of politics knowledge. According to the Section 20 of the Indian Societies Registration Act, 1860. The main purposes of Registration of Society are as follows:

  • Charitable Societies- like SAHYOG- Care For  You (education), National Society for equal opportunities for the Handicapped (differently-abled), Etasha Society (livelihoods), Nirmal Jyoti Educational and Charitable Society (education).
  • Origination of Military Orphan Funds – Bengal Military Orphan Society, Landholders’ Society.
  • Establishment of societies at the several presidencies of India- Bengal Presidency.
  • The promotion of science, literature, or the Performing Fine Arts- NCERT(National Council of Educational Research and Training), Shilpa Shikshalayas, Kala Kendras (relating to music, dance & modeling), Martha farrel.
  • Promotion of Diffusion and Instruction of useful knowledge.
  • The Political Education Diffusion.
  • The Maintenance or Foundation of reading rooms or libraries for open to the public or general use among the members.
  • Maintenance of Galleries of paintings, Public museums and other Art works.
  • Maintenance & Collection of Natural History.
  • Foundation or Maintenance of Mechanical and philosophical inventions.
  • Foundation or Maintenance Instruments or Designs.
  • Knowledge.
  • Grant for charitable aid.
  • For any other reason approved by the government.

Apart from the above objectives specified by the Societies Act, 1860, a Society may also be registered for other purposes on the basis of the amendments to the Societies Registration Act, 1860 by the concerned Government of the State.

There are certain benefits and limitation of register a society with which you must be knowledgeable about completely before deciding to proceed.

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Benefits of Register a Society

  • A society attains legal status after being registered as a society.
  • Gets certified society gets statutory status which is necessary for the legal implication of society’s wealth.
  • The registered society can open its current account by own name.
  • The society can obtain registration and approval under the Income Tax Act.
  • A society is entitled to income tax exemption under the Income Tax Act.
  • A society receives a separate legal entity after registration.
  • A society reserves the right to lease, rent, buy or sell property; Borrow money or enter into legal contracts in your own name.
  • Members of the registered society are constitutionally bound to the same extent as if they had signed the Memorandum.
  • A registered society can sue or sued.
  • All registered societies are legally recognized in the eyes of all forums and government officials.
  • Members of the Society are not personally liable for any debts or obligations. Unless a loan is obtained for activities undertaken to make a profit. Or activities undertaken are illegal in nature.

Limitation of Register a Society

  • According to Section 12A, Section 12AA, Section 80G of the Income Tax Act, Income tax department provides tax exemption to societies for charitable part of activities undertaken by societies.
  • This form of organization is definitely unsuitable for the tasks that need to be done for the purpose of profit. This is because a society can only function for a charitable purpose.
  • No system of equity investment or ownership exists for societies.
  • Furthermore, investors are reluctant to invest in societies as these organizations lack professionalism.
  • Since societies are considered unincorporated bodies by law, they are not allowed to publicly accept deposits. Also, they are not allowed to collect savings from customers.

Eligibility for Society Registration

Registered societies are alike to a partnership firm. To form a community there must be at least 7 members or more, a minimum of 7 members for a state society and a minimum of 8 members from eight different states (one in Delhi) is mandatory for a national society. There is no upper limit of members prescribed according to the Society Act. People, companies and other registered societies located in India or located in a foreign place can enroll in the memorandum of a society in India. The rules and laws for registration may vary slightly from state to state. The following members are allowed to nominate for the memorandum of the societies:

  • Foreigners;
  • Partnership firm;
  • Limited company;
  • Society Registered;
  • Incompetent Minors;
  • Companies registered in foreign jurisdiction;
  • Companies in India;
  • Other various registered society.

Constitution of Board of Member

  • Executive Committee 
  1. President-1 
  2. General Secretary-1
  3. Vice chairman-1
  4. Treasurer-1
  • General Body 
  1. All Members- 3 to 16 

Characteristic of Core Committee Member

  • All members of a society have equal rights in the general body.
  • Members of the same family cannot be members.
  • The registrar or Deputy Registrar of Societies of the concerned state/ charity commissioner has the authority to register the Society.
  • Society‘s Membership is not transferable.

Time Duration

The society registration procedure almost takes 1 to 2 months to register a new Society.

Jurisdiction

You have to apply for registration of the society in the area where you are providing the address of the registered office. The registered office can be a residential or commercial location. The jurisdiction of the Registrar of Society shall be applicable according to the registered office of the Society chosen/selected and provided by the founders. National level societies can be registered from the Union Territory of Delhi and State level societies can be registered mostly from the district headquarters (how to open a multiple society in various state or branch office).

Dissolution

According to Section 23 of the Societies Registration Act, 1860 also provides for the dissolution of societies and requires that at least three-fourths of the members of the society be assured of dissolution. After that all necessary steps according to the settlement and disposal of the society’s property, its liabilities and claims will be applicable as per the rules applicable to the said society. However, after the dissolution, and after the settlement of all liabilities and debts, the property and funds of the society cannot be distributed among the society’s members; rather, the remaining money and property must be given or transferred to another society. It must be done, preferably with objects similar to the dismantled unit.

Difference between Society, Company and Trust 

RULES, PROCEDURES AND OTHER REQUIREMENTS

SOCIETY

COMPANY

TRUST

Process of registration has the status of NGO(Non-Governmental Organization)/NPO (Non-Profit Organization)

Society is an NGO/NPO.

Company is an NGO/NPO.

Trust is an NGO/NPO.

Acts and Laws applied to register 

Societies Registration Act, 1860.

Companies Act.

Indian Trusts Act/Bombay Public Trusts Act.

Time Period

1 to 2 Months.

3 to 6 Months.

2 days to 1 week.

Registering Authority

Registrar or Deputy Reg. of Societies of the state/charity Commissioner.

Registrar of Company.

Sub-Registrar of Registration/Charity Commissioner.

Minimum Members/Directors/Trustees at State or National level

Minimum 7 members for state and 8 member for national level society.

Minimum 2 Directors for private company and 7 Directors for public company.

Minimum 2 Trustees only, no limit of maximum trustees or members.

Governing Structure

1.General Body.

2.Executive Committee.

1.General Body of Directors.

2.Board of Directors.

1.General Body/Board of  Trustees.

2.Executive Committee or Only one General Body of Trustees.

Words used with the name of the organisation

Foundation, Samiti, Society, Organization words can be used with the name of the society.

Foundation, Samiti word can be used with the name.

Foundation, Trust, Samiti, Society or any word can be used. No need to use Trust word along with the name during Trust registration.

Position of Foreigner

Foreigner can be a member of society.

Foreigners can be directors.

There is no restriction and provision to foreigners to be or not to be members. So foreigners can be members of a Trust.

Provision of Recurring expenditure

Negligible and minimum statutory compliances are required.

Annual Returns and balance sheet are filed with certain fees has to be paid if there is any resolution to approve.

No statutory recurring expenditure after registration.

Can members get payment or can not

General body can permit and approve to get payment.

General body of Company can approve to get payment.

Trustee can not receive Payment but if there is a provision to get funds in the trust deed then Trustees can receive payment for project or if the Trustee is providing professional service or consultancy.

Document Registration

Memorandum of association and rules and regulation.

Under section 8 of company act, Memorandum of association and Article of association.

Trust deed.

Stamp duty

No stamp duty required for MOA and rules and regulation.

No stamp duty required for MOA and AOA.

Non-judicial stamp paper and its vary from state to state.

Procedure for registration of society in India 

Steps for Registering a society in India

For society registration, the Indian Society Registration Act, 1860 makes it easy for companies or even foreign nationals to form a society. The state government and its appropriate officers are concerned with the registration of societies. The registration of the society should be effective under the Societies Registration Act, 1860. Once a person desirous of creating a society has settled in the name of the society and plans to draft a memorandum and rules and regulations, the following methods have to be selected for the society to appear:

  • Selection of a Name / Unique Name

According to the Societies Registration Act, 1860 it is important to understand that, the similar or same name of the presently society registered will not be allowed, Whenever selecting a name for registration of society, it is vital to have a unique name to register societies in the Indian Societies Act,. Registration also cannot be done for names which are prohibited by any other statutory provisions. Further, the proposed name shall not suggest any protection to the State government or the Government of India or fascinate the provisions of the Emblems and Names Act, 1950. It is also important that the decision of the name of the society should be accepted by all the members of the society.

  • Memorandum of Association (MOA)

According to Section 2 of the Society Registration Act, 1860, the Memorandum of Association (MOA) is a document that represents and describes its continuity and purpose of operation. It defines the authorized range of force and performance. Supervision is very necessary for drafting this document, which will be mainly required for the receipt of goods. The Association of Memorandum along with the rules and regulations of the society must be signed by each established member, a witness by Gazette Officer, a Notary public, Advocate, Magistrate First Class, Oath Commissioner, Chartered Accountant, or Chartered Accountant with their official stamp and full address. The memorandum should contain the name of the society, the purpose of the society. Apart from this, it has the member’s details of the registration of the society along with their names, occupations, designations and addresses. The following documents have to be signed, prepared and submitted for registration and necessary forms to be attached to the application form:

  • Requesting social registration by providing covering letters, signed by all established members.
  • Duplicate copy of the Society’s Memorandum of Association with a certified copy.
  • Duplicate copy duly signed by all established members along with copy of the rules and regulations of the society.
  • No Objection Certificate (NOC) issued by the landlord along with the address proof of the registered office of the society.
  • Affidavit given by the Secretary or the President of the society who declares the relationship between the customers.
  • A few minutes meeting about the Society registration with providing some necessary documents.
  • Accounts & Audit

The Society has funds and property provided to them by members or other persons (through donations, etc.). Resources and Funds are involved in the attainment of the objects for which society is made. Members of the regulatory body are governors who implement the funds. It is certain that societies keep proper accounts and get them audited and display them to the members in the general meeting and send them to the registrar for analysis. Every society should get its statements audited by the auditor duly once a year and a balance sheet developed by him. The auditor should present the report showing the exact date of commercial activities of the society.

The Articles of Association (AOA)

The Articles of Association (AOA) include rules and regulations are as follows:

  • Rules and ordinances by which the functioning of the society will be controlled and the day-to-day activities are protected,
  • It will include rules for practicing membership of the society,
  • The features and frequency they hold about society meetings should be mentioned,
  • Detail about auditors,
  • General Body Description,
  • Subscription Details,
  • Meeting details,
  • Form of arbitration in case of any dispute within members of society,
  • Methods for removal of membership,
  • The methods of dismissal of the society should be mentioned.

Procedure for registration of society in MP

Procedure for Online Society Registration

Please ensure before registration the following documents with you and read the instructions carefully.

The application has to be processed in two stages:

  1. Application number generation by “MP Online” developed application.
  2. Pay by visiting Cyber ​​Treasury Portal and Generate CIN Number.

Receipt

Ensure net banking enabled account to pay Challan fee using Cyber Treasury Portal. If the applicants not have net banking enabled. The account can then be availed with the help of KIOSK / CSC. Presently, Cyber ​​Treasury have 6 banks portal to pay the challan fee i.e.

  1. State Bank of India, 
  2. Union Bank of India,
  3. Axis Bank of India, 
  4. Punjab National Bank, 
  5. Central Bank of India,
  6. ICICI. 

Challan Fees:

  • Ordinary Society Challan Fee INR 3000/- (Ordinary) and 5000/- (Immediate).
  • Mahila Mandal and Yuva Mandal INR 1000/- (Ordinary) and 1500/- (Immediate).
  • Portal Fee Society INR 100/-.
  • Portal Fee Youth / Mahila Mandal INR 40/-.

Documents required to be pre-scanned are as follows:

  • Photo of Head .jpeg file size (50 KB).
  • Niyamwali PDF File Size (1.5 MB).
  • ID proof PDF file size (100 KB).
  • Address proof PDF file size (100 KB).

Steps to Register Society in Madhya Pradesh

Step 1: Go to the official website of Madhya Pradesh Government.

Step 2: Go to the Menu  Click on “Citizen Service”  and then Click on  “Application” option on the home page.

Homepage of Mponline.gov.in

Step 3: After selecting on Application, Application screen will open then select on “FIRMS AND SOCIETY” icon from the service’s list displayed.

Application Screen-List of Services 

Step 4: For registration, Applicant has to create “New User Login”.

New User Login

Step 5: If you would like to read detailed information about Firm Act and Society Act then Click on M.P Society Registration Adhiniyam, 1973 

Step 6: After this, click on the “New User” button, and then the form will open on the screen.

Step 7:  Then Registration form will open, the applicant has to fill the required details in the application form and click on “Register”.

Application Form

Step 8: Then, Click on “Society Online Registration” option.

Madhya Pradesh Society Online Registration

Step 9: Now, to proceed further follow the instructions and click on “Continue”.

Niyamawali 

Step 10: Upload the scanned document (Niyamawali or By-law) and tap on the “Continue” button.

Documents Uploaded

Step 11: Again, The application form will open, the applicant has to fill the required details in the application form.

Madhya Pradesh Society Online Registration Form

Step 12: After filling the required detail of the form, select on “Save” to save the all details.

Details Saved

Challan’s generation

Step 13: Select on “Proceed to pay for registration fee” for the fees payment.

Pay for Challan Fee

Step 14: The applicant needs to click on “Firms and Societies” from the department’s list. Departments List.

Step 15: Fill the required details and submit the application form.

E-form for cyber receipt 

Step 16: Upon submission, the applicant will be redirected to the Banking website.

Step 17: Then, one has to fill all the required details and pay their amount on the payment portal of the selected bank.

Portal of Bank payment 

Step 18: Now, the Challan Reference ID, Application ID, Transaction ID will be generated.

Transaction status 

Registration’s Payment

Step 19: Again, The Applicant has to login into the portal.

Existing User Login

Step 20: Click “Unpaid Application” under the Track Application menu.

Track Application 

Step 21: Click on “Society Application” to proceed with payment.

Society unpaid application 

Step 22: Fill the details and save the document and pay the portal fee for successful registration.

Attach required Documents

Note: After registration, the status of the application can be seen after Five (5) working days from the date of application.

Essential Documents to register a society in India

There are essential documents to register a society registration in India and State is as follows:

  1. PAN card –All of the proposed society member have to submitted PAN CARD along with the application.
  2. Residence Proof– For the valid Residence Proofs all the society member also have to submitted following documents:
  • Aadhaar Card,
  • Bank Statement,
  • Utility Bill,
  • Passport,
  • Driving License(“DL”).
  1. Memorandum of Association (MOA) – MOA shall be prepared containing the following information and clauses:
  • The objective and function of the society for which it is being established.
  • Details information of the members constituting the society.
  • It will contain the address of the registered office of the society.
  1. Society’s Rules and Regulations- Society’s rules and regulation have to be prepared and it must contain the following information:
  • The working of the society and maintenance of daily activities will be governed by Rules and Regulations.
  • Society’s Rules and Regulation will contain the rules for taking the membership of the society.
  • The details about the meetings of the society and the frequency with which they are going to be held is to be mentioned.
  • Auditor’s Information.
  • In case of any dispute between the members of the society it forms of arbitration
  • Mentioned the Ways for the dissolution of the society.

Once the rules are made, they can be changed, but the new set of rules will be signed by the President, the President, the Vice President and the Secretary of the Society.

  1. Covering Letter mentioning the purpose or objective for which the society is being created will be annexed at the beginning of the application. It will be signed by all the founding members of the society.
  2. Address Proof – A copy of the Address Proof where the registered office of the society will be located from the landlord with a Non Objection Certificate (NOC) if any is to be attached.
  3. List of the entire Members- All member’s list of the governing body should be given along with their signatures.
  4. Declaration- The President is willing and able to hold the said post of the proposed society is to be declared. 

The two copies of Memorandum of Association along with respective committee’s rules and regulation within the state submitted by the applicant. Other than these document applicants have to submit the requisite fees mentioned by the state government.

When application received by the registrar, the registrar acknowledges the 1st  copy by his sign and return it and  keeps the 2nd copy for approval. On proper distribution of documents, the registrar will issue a certificate of incorporation by allocating a registration number to it.

The memorandum as well as the signed rules and regulations, have to be filed with the Registrar of the related society or state with a mentioned fee. If the Registrar Society finished with the registration application, they will certify that the Society is registered. 

The registration of the society is possible with the necessary documents mentioned above along with the properly filled form. Registration also makes it easier to be taken for legal procedures against or for society. Registration once entered will take one month to complete.

Conclusion 

A society is an organization in which a group of individuals with similar interests come together to perform certain tasks. The said societies are governed by the Societies Registration Act of 1860 and the said Act has been amended by the respective states. Societies are registered and governed as per the said Act. Registration of society is necessary to promote fine arts, science, literature, or knowledge sharing for a purposeful matter or for charity. On the other hand, society is also formed to maintain a residential or commercial complex or to form an apartment association.

Moving forward and helping others do a noble cause not only makes society better, but it is you who become a better version of yourself day by day. To give this view an edge, people come forward and create a society for the good of all. If you want to form a society and have the society has registration.

References


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