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SOCIETY REGISTRATION

SOCIETY REGISTRATION

In India, the concept of society was enacted by the British government in 1860. The Indian Societies registration Act which carries all the legality for the registration of the societies. At that time they only granted the registrations for the societies which involved the growth of literary, scientific and charitables. Nowadays it has become a part of non profitable organisations. The government which supports and provides various funds for the registered Societies in India. So if you are going to start a society the registrations under the Indian Societies Registration Act is necessary for organising the society for various purposes.  

WHAT IS SOCIETY REGISTRATION?

A society is a non-profit organisation engaged in promoting charitable activities such as education, art, religion, culture, music, and sports, etc. It is an organised group of people whose main objective is to serve the society and not to make profit. Society Registration, under, The Society Registration Act, in India, lays down certain procedures for the sake of registration of society and its operation.

In India, a society can be registered under the Societies Registration Act, 1860. This legislative framework was enacted to enhance the legal provisions governing society registration, with a focus on the promotion of literature, fine arts, science, and the dissemination of knowledge for various benevolent purposes. The registration requires a minimum of 7 members. The founder can be an individual, a company or a foreign national.

What can be the objects of a society ?

  • Social welfare
  • Social development
  • Promotion of science
  • Promotion of literature
  • Promotion of the fine arts
  • Charitable purposes
  • Political education
  • Instruction
  • Diffusion of useful knowledge
  • The foundation or maintenance of libraries or reading rooms for general use among the members or open to the public
  • Public museums and galleries of paintings and other works of art
  • Collections of natural history
  • Mechanical and philosophical inventions, instruments, or designs

These are some common examples, and the specific objects may vary depending on the nature and purpose of the society.

Advantages of registering the association :

There are two types of indemnity agreement. They are,

Credibility:

Registration adds credibility and trust to the association. It is often seen as a mark of authenticity and seriousness of purpose, which can be beneficial in dealings with government bodies, donors, and the public. It also spurs the members to work harder for the achievement of the objective.

Limited liability:

Once the society is registered, the society and its members are considered as separate persons. However, the members are never liable. Their personal assets are not usually at risk for the debts or liabilities of the society. This helps protect the personal assets of individual members.

Legal Capacity:

A registered society has the legal capacity to own property, such as a car or office space, enter into contracts, hold a bank account for its transactions, and sue or be sued in its own name. This enhances its ability to engage in various legal transactions.

Tax exemption:

In some cases, registered societies may be eligible for tax exemptions on their income. However, this depends on the specific activities and objectives of the society, and it is advisable to check the applicable tax laws.

Immutable existence:

A registered society enjoys perpetual succession, meaning it continues to exist despite changes in its membership. The death, departure, or replacement of members does not affect the continuity of the society.

Documents required to register a society:

  • Name and details of the members
  • Address and Designation of all the members
  • The object of the Society
  • Memorandum of Association
  • Rules and Regulations of Society
  • Affidavit of president/secretary stating the relationship between the subscribers.
  • Address proof of the office of the society and no objection certificate from the land owner.

How to register a society ?

The Registrar of Societies, i.e. the District Registrar in each district, has the power to register a society. Societies can be registered with the Registrar of the district where the society has its registered office.

Step 1: Determine Eligibility and Purpose

Before initiating the registration process, clearly define the objectives and activities of the society. Ensure alignment with the legal definition of a society and its permissible purposes.

Step 2: Formation of a Governing Body

Establish a governing body or managing committee comprising individuals who will oversee the society’s operations. This body is responsible for decision-making and administration.

Step 3: Choose a Unique Name

Select a distinctive and unique name for the society. Verify the name’s availability to avoid duplication with existing registered societies.

Do’s and don’ts for a society name

  1. The name must not be similar or identical to the name of another society.
  2. It should consist of the word Association or Society.
  3. It should not contain offensive words.

Step 4: Draft Memorandum of Association (MoA)

Prepare a Memorandum of Association outlining the society’s objectives, governing structure, and operational framework. Ensure compliance with the relevant state-level Societies Registration Act. For instance, The Tamil Nadu Societies Registration Act 1975, lays down the procedure for Society Registration in the state of Tamil Nadu.

Step 5: Draft Rules and Regulations

Develop comprehensive rules and regulations (Bylaws) that govern the internal functioning of the society. Include details on membership, meetings, roles, and responsibilities.

Step 6: Get Memorandum and Rules Signed

Have the MoA and Rules signed by the founding members of the society. Each member must sign in the presence of a witness.

Step 7: Prepare an Application

Create an application for society registration, including details such as the society’s name, objectives, address, and particulars of the governing body.

Step 8: Attach Required Documents

Gather necessary documents, including MoA, Rules and Regulations, address proof, identity proof of members, and an affidavit stating the relationship between the subscribers.

Step 9: Submit Application

Submit the application along with the required documents to the Registrar of Societies in the respective state. Ensure compliance with the prescribed format and fee structure.

Step 10: Scrutiny and Approval

The Registrar will scrutinise the application. If everything aligns with legal requirements, the society will be registered, and a Certificate of Registration will be issued.

Step 11: Receive Certificate of Registration

Upon approval, collect the Certificate of Registration from the Registrar. This document serves as conclusive evidence of the society’s legal existence.

Where to register a society?

The Registrar of Societies, i.e. the District Registrar in each district, has the power to register a society. Societies can be registered with the Registrar of the district where the society has its registered office.

Steps after registering the society :

1. Maintain Proper Records:

Keep and maintain updated records of members, including their contact details. Maintain minutes of all meetings, including general meetings and committee meetings.

2. File Annual Returns:

File annual returns with the Registrar of Societies. These returns typically include details of the society’s activities, financial statements, and any changes in office bearers or the constitution.

3. Audit of Accounts:

Conduct an annual audit of the society’s accounts by a qualified auditor. Prepare audited financial statements and present them at the annual general meeting.

4. Compliance with Tax Regulations:

Ensure compliance with applicable tax regulations. Seek professional advice to determine the tax obligations of the society, including filing of income tax returns if applicable.

5. Notify Changes:

Notify the Registrar of Societies about any changes in the memorandum of association, rules, regulations, office bearers, or the address of the society.

6. Maintain Transparency:

Practice transparency in the society’s activities and finances. Share relevant information with members and stakeholders.

7. Regular Meetings:

Conduct regular committee meetings to discuss and plan the society’s activities. Mandatory annual general meetings must be held every year. Annual accounts must be presented at the general meeting.

8. Filing of Accounts and Annual Report:

File the audited accounts and an annual report with the Registrar of Societies as part of the annual return.

9. Renewal of Registration:

Ensure that the society’s registration is renewed as per the requirements specified by the Registrar of Societies. Failure to renew may result in the society losing its registered status.

10. Compliance with Local Laws:

Comply with any other local laws or regulations that may be applicable to the society’s activities.

11. Maintain Bank Accounts:

Continue to maintain the society’s bank account for financial transactions, and ensure proper authorization for withdrawals and signatories.

12. Publications and Notices:

Publish and circulate notices of meetings, activities, and any other important information to members as required.

Guideline focusing on the Tamil Nadu Societies Registration Act 1975.

1. Title and Name of the Society:

Clearly state the full name of the society, ensuring it aligns with the guidelines of the Societies Registration Act. Verify that the name adheres to the specific rules outlined in the Act.

2. Objectives of the Society:

Define the primary objectives of the society. Be explicit about the charitable, religious, cultural, educational, or other purposes that the society aims to fulfil, as specified in the Act.

3. Governing Structure:

Detail the organisational structure, including the governing body or managing committee. Specify the roles, responsibilities, and powers of office bearers, such as the President, Secretary, and Treasurer, in accordance with the Act’s provisions.

4. Registered Office Address:

Provide the complete address of the registered office. Comply with the Act’s requirements regarding the location of the registered office and any subsequent changes.

5. Membership Details:

Define the eligibility criteria for membership, admission process, rights, and privileges of members. Ensure adherence to the guidelines set forth in the Societies Registration Act.

6. Rules and Regulations:

Incorporate a clause stating that the society will abide by the rules and regulations framed as per the provisions of the Tamil Nadu Societies Registration Act 1975. Include a commitment to periodic review and updates in line with legal requirements.

7. Dissolution Clause:

Include a clause detailing the procedures for the dissolution of the society, specifying the method of asset distribution in case of dissolution. Align this with the stipulations of the Societies Registration Act.

8. Amendment Clause:

File the audited accounts and an annual report with the Registrar of Societies as part of the annual return.

9. Witness and Signatures:

Ensure that the society’s registration is renewed as per the requirements specified by the Registrar of Societies. Failure to renew may result in the society losing its registered status.

10. Legal Review:

Before finalising, seek legal counsel to review the MoA. Ensure it complies with the specific provisions of the Tamil Nadu Societies Registration Act 1975 to avoid potential issues during the registration process.

Link: Registration of Societies with Inspector General of Registration (IGR)

The time taken to register a society:

  • It takes at least 2 months to register a society in Chennai.
  • To register a society in Tamil Nadu (other than Chennai), at least 30 to 40 days are required.
  • Registration of a society in Bangalore takes 10 to 12 working days

Miscellaneous information:

  • There is no limit to the number of members of a society.
  • A society cannot be legally valid if it is formed for profit.
  • The objects of a society can be changed with the consent of the Registrar.
  • No stamp paper is required to incorporate a society.
SOCIETY REGISTRATION
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