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How to Register a Society? And Benefits for Society Registration in India

“What is a Society Registration in India?”, “How to Register a Society?”, And Documents required for Society Registration in India 

 

Introduction

A society is a non-profit organization that promotes philanthropic activities such as education, sports, culture, music, art, and religion, among other things. As a result, a society is a group of people who have decided to work together for a common goal. The Society Registration Act, of 1860, lays out the method for registering societies in India, and state governments have adopted it with or without revisions. In this article, we’ll look at “How to Register a Society?”, Documents required for Society Registration, and the Benefits of Society Registration in India.

Outline of Societies Act, 1860

The Societies Act, 1860, is a law in India that allows groups of people to form societies for promoting activities like charity, education, or art. It provides guidelines for the registration, governance, and operation of these societies.

What is a Society Registration in India?

A society can be created by at least seven people. Not only Indian citizens but also companies, foreigners, and other registered societies can join in registering the society’s Memorandum of Association (MOA). Just like partnership firms, societies can be either registered or unregistered. However, only registered societies can own property or be involved in legal actions.

The state government handles society registration. So, the registration application must be submitted to the authority in the state where the society’s office is located. To register a society, the founders first need to agree on a name, then prepare the Memorandum and the society’s Rules and Regulations.

Benefits of Society Registration

  • The position of society is elevated to that of a legal body.

  • A Society’s facilities include the ability to sell, acquire, rent, and lease property.

  • If a Society is incorporated, it is eligible for income tax exemption.

  • A Society’s membership may change, but it will remain a separate body.

  • Members are held liable for debts and responsibilities incurred as a result of illegal activity.

Objectives of forming a society

The objectives of forming a society typically include:

1. Promoting Social Welfare: Enhancing the well-being of communities through charitable, educational, or health-related activities.
2. Encouraging Education: Supporting and improving educational initiatives and institutions.
3. Fostering Art and Culture: Preserving and promoting cultural, artistic, and historical activities.
4. Advancing Science and Research: Conducting and supporting scientific research and innovation.
5. Facilitating Community Development: Working towards the overall development and improvement of communities and their living conditions.

Name selection for society under societies Act.

When selecting a name to register a society, it’s crucial to ensure it is not identical or too similar to the name of any already registered society, as required by the Societies Act, 1860. Additionally, the name should not suggest any connection with the state or central government and must comply with the Emblems and Names Act, 1950.

Entity that are eligible to register a society

  • Indian and Foreign Companies

  • Partnership Firm

  • A non-resident of India or Foreigners

  • Registered Societies

  • A minor (but not below the age of 18)

Memorandum of Association of a society

To register a society, the Memorandum of Association and the Rules and Regulations need to be signed by all founding members and checked by an official like a Notary Public or a Magistrate. You also need to submit a few things: a letter asking for registration, signed by all founders; two copies of the Memorandum and the Rules, both signed and certified; a sworn statement from the President or Secretary about the members’ relationships; proof of where the society will be based, and a No-Objection Certificate from the landlord. All these documents, along with the signed Memorandum and Rules, should be given to the Registrar of Societies in your State, with the required fee. If everything is in order, the Registrar will officially register your society.

Documents required for Society Registration

  • List of all the Members

  • MOA (Memorandum of Association)

  • PAN (Permanent Account Number) Card Information

  • Residential Proof of all the members

  • Registered office address proof

  • Covering Letter

  • A list of all the rules and regulations prepared prior to registering a Society

How to Register a Society?

  • To register a society, you must first research the requirements for Society Registration in the state where the Society’s registered office will be located.

  • The parties intending to form a society must then decide on a suitable name, objects for the society, and registered office.

  • Once a decision has been made, a legal practitioner can draught the Society’s Memorandum of Association

  • Once MOA is formed it will be signed by all members of the society and witnessed by a Notary Public.

  • In addition, at least three members of the governing board must sign the Society’s Rules and Regulations.

  • Once the above documents have been created and signed, they can be filed with other necessary documents with the Registrar of Societies or another state-level authority responsible for society registration.

  • After considering the application for society registration, the Registrar can either approve it or request more information if necessary.

  • The certified copies of the Society’s MOA and Rules & Regulations serve as prima-facie evidence of the Society’s registration at the time of registration.

  • At the end if the local bodies are completely satisfied with the Society Registration documents and rules and regulations the application is approved and society will be registered.

Points to keep in mind

  • The name of the Society should follow the restrictions put down by the Society Act, 1860, which specifies that if two names are chosen that are identical, the Authority will reject them.

  • The name should not be offensive to the state government or the Indian government.

  • The name must adhere to the Emblem and Names Act (Prevention of Improper Use) of 1950.

  • There can be no words or phrases that are anti-government or anti-community.

Conclusion

By registering as a Society, it will be treated as a separate legal organization, which will benefit members when it comes to collecting funds or obtaining tax exemptions. There is a common misperception that a registered Society is exempt from paying taxes. That is not the case; Society, like any other legal organization, is required to pay taxes. To qualify for the exemption, the Society must receive section 80G certification from the IT (Income Tax) authorities.

FAQs on Society Registration in India

1. Will Society be able to continue to exist if its membership changes?

Society, on the other hand, will continue to exist.

2. What are the Elements of a Society’s MOA?

The phrase “components” refers to the Name, Object, and Member Details, as well as the Registered Office.

3. Is Society a Legal Entity in Itself?

Yes, once a society is registered, it becomes a separate legal entity.

4. Is it possible for Society to be excluded from paying income taxes?

Yes, under the Income Tax Act, a society can receive Income Tax Exemption.

Zarana Mehta: Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.
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