Ultimate Guide to Effortless Society Registration in India: Complete Process & Benefits

Individuals unite by mutual consent to form a society, deliberate, determine, and act jointly for a common purpose. Typically, people register societies to promote charitable activities such as education, art, religion, culture, music, and sports. In India, the Societies Registration Act, 1860 governs the procedure for Understanding Society Registration in India, and most State Governments have adopted it with or without modifications as deemed necessary.

1. Charitable societies; 
2. The military orphan funds or societies established at the several presidencies of India; 
3. Societies established for the promotion of science, literature, or the fine arts for instruction, the diffusion of useful knowledge; 
4. The diffusion of political education; 
5. The foundation or maintenance of libraries or reading-rooms for general use among the members or open to the public; 
6. Public museums and galleries of paintings and other works of art, collections of natural history, mechanical and philosophical inventions, instruments, or designs. 

Besides these purposes, the respective State Governments may also provide for any other objects through their legislations.

1. The process of formation and registration is simple. 
2. Record-keeping requirements are minimum and compliance with regulations is easy. 
3. Cost of compliance is low. 
4. Least possibility of interference by the regulator. 
5. Moreover, exemption from tax is granted due to the charitable nature of operations.

1. Tax exemption extended to societies may apply to public trusts only to the extent the Income Tax department accepts their activities as being charitable; 
2. Since such institutions are of charitable nature, it is an inappropriate form of a commercial venture; 
3. The absence of equity investment or ownership, therefore, makes it unattractive for commercial investors interested in microfinance.
4. Commercial investors regard the investments in such entities as risky mainly on account of their lack of professionalism and managerial practices and political leanings (in some cases) and are, therefore, reluctant to provide large scale funding to such bodies; 
5. Section 45S of the RBI Act, 1934, prohibits unincorporated bodies from accepting deposits from the public. The law considers organizations registered under the Societies Registration Act and the Trust Act as unincorporated bodies.

Key Points – Society registration under the Societies Registration Act, 1860 allows a group of individuals to form a legal entity for a common purpose. The society registration process begins when members agree on their society’s objectives and prepare key documents such as the memorandum of association and rules and regulations. An application for society registration is then submitted to the Registrar of Societies. Once registered, the society becomes a legal entity separate from its members. It gains the ability to hold property, enter into contracts, and pursue its objectives legally. Society registration ensures legal recognition and provides benefits such as credibility, tax exemptions, and eligibility for government grants.

• For legal purposes, such as literary, scientific, charitable, or social objectives, at least seven or more people can come together to form a society. Once they agree on the purpose, they can proceed with the formation process.
• The Registrar must receive the Memorandum of Association (MOA), which should include:
  1. Name and objectives of the society.
  2. Names, addresses, and occupations of the governing body members.
  3. Rules and regulations of the society.
• Registration Process:
  1. The Registrar registers the society upon receiving the MOA and rules & regulations.
  2. The State Government determines and requires a registration fee.
• Applicants can register either at the state level (in the office of the Registrar of Societies) or at the district level (in the office of the District Magistrate or the local office of the Registrar of Societies).
• Consent letters of all the members of the managing committee 
• Authority letter duly signed by all the members of the managing committee 
• An affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs.20-/, together with a court fee stamp 
• The members of the managing committee must declare that they will use the society’s funds only to further its aims and objectives.

1. A letter requesting registration, signed by founding members. This letter will state why the founders are forming the society and include a requisition indicating its registration under the Act. The signature of all members is mandatory. 
2. A certified copy of the MoA, signed by the founding members, with a duplicate. 
3. A certified copy of the rules and regulations, signed by the founding members, along with a duplicate copy. 
4. A table with the names and address and occupation of all members of the society with their signatures. 
5. Minutes of the meeting (general body meeting conducted to set the rules and regulations). 
6. Declaration by the president of the society. 
7. A sworn affidavit from the President or Secretary, declaring the relationship between the subscribers. 
8. Address proof of registered office and no-objection certificate from the landlord. 

Applicants must file the documents with the Registrar along with the fees and a suitable name (which should be unique and not suggest a relationship with the government or violate the provisions of the Emblem and Names Act, 1950). If the Registrar finds the application satisfactory, they will register the society. This process is a crucial part of Understanding Society Registration in India.

Benefits of forming a society 

1. Under Society Registration in India, societies can get income tax exemption if they meet certain conditions. To qualify, they must register under Section 12A/12AA of the Income Tax Act, 1961.
2. Donors can claim a rebate under the Income Tax Act for donations to a society, but only if the society has approval under Section 80G. Registration under Section 12A is a one-time process. Once granted, it remains valid unless canceled, allowing the NGO to enjoy lifetime benefits.
3. Societies, as NGOs, receive grants from the government and other agencies. These agencies typically provide funding to societies registered under Section 12A. 
4. Societies operate on democratic principles, allowing wider member participation in their activities.
5. Through the election process, inefficient management can be removed. Furthermore, this process enables management changes for better governance.

Minimum Requirement for Society Formation

A minimum of 7 or more persons can create a society. Apart from persons from India, companies, foreigners, as well as other registered societies can also register for the Memorandum of the society. 

State governments oversee society registration. Therefore, applicants must submit the registration application to the relevant authority in the state where the society’s registered office is located.

1. Selection of a Name 

When choosing a name for society registration, ensure it is unique and not similar to any existing society. Also, the name should not imply government support or break the Emblem & Names Act, 1950.

2. Memorandum of Association 

The Memorandum and Rules & Regulations of the society must be signed by all founding members and witnessed by an official, such as a Gazetted Officer or Notary Public. Additionally, it should include member details, such as names, addresses, designations, and occupations.

• Submit a covering letter, signed by all founding members, to request society registration.
• Duplicate copy of memorandum of association of society along with certified copy 
• Duplicate copy of Rules & Regulations of society along with duplicate copy duly signed by all establishing members 
• Address proof of registered office of society as well as no-objection certificate (NOC) issued by landlord
• Affidavit by secretary or president of society declaring relationship among subscribers 
• Few minutes of meeting regarding the society registration along with providing some essential documents. 

Following are the documents required for the Society Registration in India: 

1. Additionally, applicants must submit the PAN cards of all members of the proposed society along with the application.
2. Furthermore, applicants must also submit the residence proof of all society members. The following documents qualify as valid residence proof:

1. Bank Statement 
2. Aadhar Card 
3. Utility Bill 
4. Driving License 
5. Passport 

Understanding Society Registration in India

Applicants seeking society registration must prepare the Memorandum of Association, which will contain the following clauses and information:

1. The society’s founders must define its work and objectives for which they are establishing it.
2. The details of the members forming the society 
3. It will contain the address of the registered office of the society 

Additionally, applicants must prepare the Articles of Association, which should contain the following information.

1. The society will govern its working and maintain day-to-day activities according to its rules and regulations.
2. It will contain the rules for taking the membership of the society. 
3. The society must specify the details of its meetings and how frequently they will be held.
4. Information about the Auditors. 
5. Forms of Arbitration in case of any dispute between the members of the society. 
6. The society must mention the ways for its dissolution. Once they form the rules, they can change them, but the President, Chairman, Vice President, and Secretary of the society must sign the new set of rules.
7. The founding members of the society must sign a covering letter stating the objective or purpose of forming the society and annex it to the beginning of the application.
8. The applicant must attach a copy of the proof of address for the society’s registered office, along with a NOC from the landlord if applicable; furthermore, this ensures compliance with registration requirements.
9. The applicant must provide a list of all governing body members along with their signatures.
10. The president of the proposed society must declare that he is willing and competent to hold the post.

• The applicant must submit the documents and fees in two copies to the Registrar. Afterward, the registrar will sign and return the first copy, keeping the second for approval. Once the documents are reviewed, the registrar will issue the Incorporation Certificate with a registration number.

The applicant must first submit the signed Rules & Regulations and Memorandum along with the fee to the registrar. If the application meets the necessary requirements, the registrar will then certify the registration.

The Societies Registration Act, 1860 lays down procedure for registration of societies for various bonafide purposes. The registration gives the society a legal status and is essential for: 

• Obtaining registration and approvals under Income Tax Act; 
• Lawful vesting of property in the societies; 
• Moreover, it not only provides authenticity but also grants recognition to the society before all authorities and the broader public.
• For opening bank accounts and transaction of business. 

A registered society is a legal entity separate from its members. As a result, it can own property, sue, and be sued in its own name, much like a person, but without physical form.

To gain the status of a legal entity, the society must register under the Act.

If the society is not registered, only the trustees in charge of the funds hold legal status. In contrast, the society itself has no legal status and cannot sue or be sued.

Without Society Registration in India, the society may exist in theory but not legally. To claim benefits, the society must be registered. An unregistered society cannot claim benefits under the Income-tax Act.

Accounts and Audits

In India, registered societies hold funds and property from members or donations. These are used to fulfill the society’s goals. The governing body members manage the funds.

Understanding Society Registration in India requires societies to keep regular account books. Then, they must audit these records and present them at the general meeting. Finally, they must file the audited accounts with the Registrar for review.

As part of Understanding Society Registration in India, every society must appoint a qualified auditor to audit its accounts once a year and prepare the balance sheet. Additionally, the auditor must verify that the society’s financial records are accurate and comply with regulations.

Litigation

As part of Understanding Society Registration in India, every society is a legal entity distinct from its members. It is capable of filing suits against any person or member. Similarly, individuals can also file suits against the society. Furthermore, a registered society can sue anywhere in India and in any State, even if it is not registered in that particular state. Understanding Society Registration in India helps clarify the legal rights and responsibilities of a society under the Societies Registration Act, 1860.