In this article, Kinjalkini Rai Choudhury pursuing Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata, discusses how to Start a Society in India.

The term society itself means a group of people who are involved in continuous social interaction with each other. A society also includes large social group sharing the same geographical, social territory. The term society has been derived from the Latin word ‘Socius’ which means association or companionship. An Individual or independent original human being is considered to be the basic component of the society. Now when one individual interacts or communicates with another individual then it gives birth to groups. When these groups again interact and communicate with each other then they develop some relationship with one another which leads to the formation of society. For example if the players of a football team or a cricket team or any other game come together then they will not be called a society but will only be termed as an aggregate of people. Within a society there must be groupings on the basis of likes and differences and dislikes. ‘Likeness’ helps in creating a series of relation among different individuals having similarity in different conditions like having same profession, same residence, same caste, family togetherness, same age group of people, sex and etc.

In a society people having same interest joins together and forms various groups and categories. Human begins are dependent on the society for their needs and satisfaction like food, shelter, protection, education, etc. Societies can be formed in local as well as in national levels.

According to A.W Green society is defined as, “It is a largest group in which individual has relationships”.

Prof. Wright says, “It is a system of relationship that exists among the individuals of the groups”.

The Starting of Society in India

The Indian Society Registration Act of 1860 was enacted and made during the British Raj in India, and is largely enforce in India today. It promotes and provides for the registration of scientific, literally and different charitable societies in India. Under this act the societies can be formed by way of memorandum of association in which seven or more people should be associated for any literally scientific or any charitable purpose of work. This memorandum needs and has to be filed along with the Registrar of the society. The memorandum has to contain the name of the society, its objects, and address and occupation of different members who are in the governing body, and in whatever name it may be called, which needs to be duly signed for consent and approval by all the members of the governing body and a duly signed copy containing the consent of all the members forming the society. A copy of all the Rules and Regulation has to be filed along the memorandum of the association. Usually a fee of 50 rupees is needed to be paid for registration.

Formation of Society

It takes place when there is togetherness of like minded people having similar interest and when they form groups and come together and they form a society. A society can be registered for promoting humanitarian activities like art, education, various types of music, different culture, various sports etc in India.

The Societies Registration Act 1860 lays down the way and procedure for how a society can be started and registered and operated in India. The Societies Registration Act was introduced for the better improvement of the legal conditions of the societies and for promotion of literature field of science or arts and also for spreading of helpful knowledge for charity purposes. This Act has been adopted and accepted by most state governments with/without anymore change or amendments.

Purposes for Society Registration

Under Section 20 of the Societies Act, 1860 the registration of a society should be done for the following purposes,

1. To get the grant of different charitable assistance
2. To create the funds for military orphan.
3. For the promotion and betterment of science.
4. For the promotion and betterment of literature
5. For the promotion and betterment of fine arts.
6. For the spreading and gaining of useful knowledge
7. Propagation of political education
8. To help in maintain and proper working of library or reading places
9. To help in main and proper working of public museum and gallery

Other than all the above purposes specified by the Societies Act, 1860, the registration of a society can also be based on other purposes and amendments that has been sanctioned in the Societies Act, 1860 by the concerned or respective State Government.

How the Registration of a Society is done in India

Usually a minimum of seven or more person are required for a society to be formed. Other than persons from India, foreigners, different companies, and other registered so cities can also take part for subscribing to the memorandum of a society. A society can also be registered or maybe unregistered like partnership firms. But only registered society can be able to get hold of vested properties or if needed can file a suit against the society. The registration of society are managed by the State Government , so if an application for registration society is to be made then it should be done to concerned authority in the state where the registered office will be situated. The founding members or the people who have formed society must prepare the rules and regulations and the memorandum and must decide and agree on the name that should be given for the society.

How the Memorandum of a Society is created

The Memorandum, the Rules and Regulations of the Society must be signed by all the founding members, and should be witnessed by an Oath Commissioner, the Notary Public, the Gazette Officer, an Advocate, a Chartered Accountant or it can be a Magistrate 1st Class with their official stamp in it and the complete address. The documents which must be prepared, signed and submitted for the registration of society are mentioned as follows

• There must be a covering letter requesting the registration of the society, and it must be signed by all founding members.
• The memorandum of Association of the Society must be given in duplicate and along with a certified copy.
• The Rules and Regulation of the Society must be signed by the founding members and the duplicate copy of it should be given.
• There must be affidavit shown by the President or Secretary of the Society and there should be the stating of relationship between the subscribers.
• An address proof for registered office of the society must be given along with an No Objection Certificate taken from the landlord.

All the signed Memorandum and the Rules and Regulations must all be filed with concerned Registrar of those societies of that particular state along with the prescribed fees. If the Registrar becomes satisfied with the given application than only the Registrar would certify or allow that particular society to be registered.

Why Registration of Society is Recommended

Usually during the registration of society stamp papers are not required but registration will give the society an important legal status and it is also essential for following things,

1.   For opening a bank account.
2.   For getting registration and also approval under Income Tax Act.
3.   For the lawful and proper vesting of properties of those societies.
4.   Giving a recognition to the society in all forums and before all authorities.
5.   Normally a suit can be filed by or against a registered society:
6. The case can be filed in the name of certain office bearers or any trustees, as it is provided or given by the Rules and Regulation of that society, or
7. It can also be filed in the name of any such persons as may have been appointed by the governing body of the society.

In the absence of the registration a society has got no legal status power or value and it has no power to sue or be sued.

The Governing Body of the Society

All the activities of the society are looked into, managed and executed by the governing body. The Act defines the members of governing body to be the following like governors, Council, Directors, Committee, Trustee or any other body to whom all the Rules and Regulation of the society work and management and other affairs are entrusted with. The basic rule is that there should at least be two members of any governing body. In the state of Tamil Nadu they have the rule that there should be at least three members for the governing body. The people who are the members of the governing body may be either elected or nominated as per it is given in the Rules and Regulations of the society. The term period of office for the member of the governing body is given in the rules of the society. In the case of Tamil Nadu the term period of office of a member of the governing body cannot be more than three years. The member of a governing body may be expelled or can also retire as it is according to the rules of the society.

The Basic Advantages of Society

1. The process of the registration is quite simple.
2. The process of record keeping is easier and the regulation is also very simple.
3. There is low changes of interference by the regulator.
4. Due to the charitable way of operation there us release and exemption.

The Disadvantages of Society

1. The tax exemption which are extended to the  society may also apply to different public trusts is only to the extent of the Income Tax department and they also has to accept these activities as charitable.

2. Commercial investors generally regards these sort of investment to be risky due to the lack of professionalism and managerial practices and therefore they are reluctant to provide large volume of funds in these cases.
3. There is no system of equity in investment or ownership, which makes is less attractive for any commercial investors who can be interested in microfinance.
4. As it is in a charitable instructional form there is inappropriate profit and no suitable strategic goal of financial operation.
5. There is also risk faced by various state governments under the Money lender Act.

Conclusion

Though the Societies Registration Act, 1860 may have few advantages and bit more disadvantages, still the registration of a society is important for the betterment and improvement of charitable activities in art, education, and different cultural work. Thus, the Societies Act is important for the starting of a better society in India.

REFERENCES

1. Society Registration in India
2. How to form a Society in India?
3. Abhay N
4. Societies’ Registration Act
5. Society
6. What is Society Meaning and definition of Society