Co-Operative/Multi State Society Registration
A society is an association of several individuals combined using a mutual accord to deliberate, govern and act cooperatively for some communal purpose. Societies are usually registered for the advancement of charitable activities like sports, music, culture, religion, art, education, etc.
Society Registration, under, The Society Registration Act, in India, lays down certain procedures for the sake of society registration & operation. This act was implemented with the purpose of augmenting the legal stipulations of society registration for the advancement of literature, fine arts, science or distribution of awareness for bountiful purposes. The society registration act, 1860 has been accepted by several state governments without or with further amendments.
Get your Society registered in the fastest possible manner.
It usually takes 15 to 25 working days, depending upon government approval.
- Name approval
- Preparation of MOA and Rules & regulations
- Preparation & Filing of Forms
- Issue of Incorporation Certificate along with PAN and TAN
- Assistance in Opening Bank Account
- Group of Individuals willing to work for the internal community.
Preparation of Incorporation Documents
Getting those docs signed by the respective stakeholders
Filing of Forms with Registrar of Societies.
Receipt of Incorporation Certificate with PAN.
- Name, Contact Number and Email Id of all the Members.
- Self Attested PAN, Aadhar & Passport size photo of all the Members.
- Apostilled Passport, Mobile Bill and other KYC docs in case of NRI Stakeholder.
- Specimen Signatures of all Stakeholders.
- Few Proposed Business Names along with Objects.
- Latest Electricity Bill/Landline Bill of Registered Office.
- NOC from owner of registered office. (If Owned)
- Rent Agreement from Landlord. (If Rented/Leased)
- Affidavit No. 1 regarding ownership and NOC for registered office of society
- Affidavit No. 2 regarding persons not related to each other and name of society
Co-Operative Society Explained here!
Features of a Cooperative Society
Features of a Cooperative Society
- As it is a voluntary association, the membership is also voluntary. A person is free to join a cooperative society, and can also leave anytime as per his desire. Irrespective of their religion, gender & caste, membership is open to all.
- It is compulsory for the co-operative society to get registration. The co-operative society is a separate legal identity to the society.
- It does not get affected by the entry or exit of its members.
- There is limited liability of the members of co-operative society. Liability is limited to the extent of the amount contributed by members as capital.
- An elected managing committee has the powers to take decisions. Members have the right to vote, by which they elect the members who will constitute the managing committee.
- The cooperative society works on the principle of mutual help & welfare. Hence, the principal of service dominates it’s working. If any surplus is generated, it is distributed amongst the members as a dividend in conformity with the bye-laws of the society.
Purpose of Society Registration
Purpose of Society Registration
A society registration can be done for the development of fine arts, science, or literature or else for the diffusion of purposeful knowledge or charitable purposes of political education. According to section 20 of the Society Act, 1860, a society registration can be done for the following purposes:
- Promotion of fine arts.
- Diffusion of political education.
- Grant of charitable assistance.
- Promotion of science and literature.
- Creation of military orphan funds.
- Maintenance or foundation of galleries or public museum.
- Maintenance or foundation of reading rooms or libraries.
- Promotion or diffusion or instruction of useful knowledge.
- Collections of natural history.
- Collections of mechanical and philosophical inventions, designs, or instruments.
Registration of a Society In India
Registration of a Society In India
A Society can be created by a minimum of 7 or more persons. Apart from persons from India, companies, foreigners, as well as other registered societies can also register for the Memorandum of association of the society.
Similar to Partnership firms, society can also be either unregistered or registered. But, only the registered societies will be able to withstand consigned properties and/or have an ensemble filed against or by the society.
Society registration is maintained by state governments. Thus, the application for society registration must be created to the specific authority of the state, where the registered office of the society is situated.
For Society registration, the establishing members must agree with the name of society first and then prepare for the Memorandum, followed by Rules & Regulations of the society.
Selection of a Name
Selection of a Name
When selecting a name for society registration, it is vital to understand that according to Society Act, 1860, an identical or similar name of a currently registered society will not be allowed. Moreover, the proposed name shall not suggest for any patronage of the state government or the government of India or fascinate the provisions of the Emblem & Names Act, 1950.
Memorandum of Association
Memorandum of Association
The Memorandum of Association of the society along with Rules & Regulations of society must be signed by every establishing member, witness by Gazetted Officer, Notary Public, Chartered Accountant, Oath Commissioner, Advocate, Magistrate first-class or Chartered Accountant with their official stamping and complete address.
The memorandum must contain the name of the society, the object of the society. Also, it consists of details of members of the society registration along with their names, addresses, designations, and occupations. The following document has to be prepared, submitted and signed for the sake of registration:
- Requesting society registration by providing covering letter, signed by all establishing members.
- 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 avowed by secretary or president of society declaring relationship among subscribers.
- Few minutes of meeting regarding the society registration along with providing some essential documents.
Documents required to register a society In India
Documents required to register a society In India
Following are the documents required for the Society Registration in India:
PAN Card: PAN card of all the members of the proposed society has to be submitted along with the application.
Residence Proof: The residence proof of all the members of the society also has to be submitted. The following can be used as valid residence proof:
- Bank Statement
- Aadhaar Card
- Utility Bill
- Driving License
- Passport
Memorandum of Association: The memorandum of association has to be prepared which will contain the following clauses and information:
- The work and the objectives of the society for which it is being established.
- The details of the members forming the society.
- It will contain the address of the registered office of the society.
Rules & Regulations of the Society: The rules and regulations of the society also have to be prepared which will contain the following information:
- Rules and regulations by which the working of the society will be governed and the maintenance of day to day activities.
- It 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.
- Information about the Auditors.
- Forms of Arbitration in case of any dispute between the members of the society.
- Ways for the dissolution of the society will also be mentioned
Once the rules have been formed, they can be changed but the new set of rules will be signed by the President, Chairman, Vice President and the Secretary of the Society.
Covering letter: A covering letter mentioning the objective or the purpose for which the society is being formed will be annexed to the beginning of the application. It will be signed by all the founding members of the society.
Proof of Address: A copy of the proof of address where the registered office of the society will be located along with a NOC from the landlord if any has to be attached.
List of all the Members: A list of all the members of the governing body has to be given along with their signatures.
Declaration: A declaration has to be given by the president of the proposed society that he is willing and competent to hold the said post.
All the above documents have to be submitted to the Registrar of Societies along with the requisite fees in 2 copies. On receiving the application, the registrar will sign the first copy as acknowledgement and return it while keeping the second copy for approval. On proper vetting of the documents, the registrar will issue an Incorporation Certificate by allotting a registration number to it.
The signed Rules & Regulations, as well as Memorandum, has to be filed with the concerned society or registrar of state with a mentioned fee. If the registrar is fulfilled with the society registration application, then they will certify that the society is registered.
Various types of Co Operative Society:
Indian and Indian states has various types of set up for co operative society registration and regulations. Some state gives preference to society and its working model, while other feels their government machinery is capable enough to manage everything from the top and never allows anything to get operative in association of people. Some of the mention worthy forms of society are:
1. Consumer Cooperative Society
These societies are primarily for consumers who wish to buy household goods at lower prices. The society buys goods or products in bulk amounts directly from the producer on wholesale rates and sells them to the members, thus eliminating the need for a middleman. The purchased goods are sold to members and non-members in cash. Capital is raised by issuing low denominational shares to the members who also get dividends on the shares. Consumer co-operatives do not use advertising but rely on word-of-mouth. They ensure a regular supply of goods at reasonable rates. They set up stores or outlets to sell goods and avail huge trade discounts from producers. Some of the best examples of a consumer co-operative society are Super Bazar and Apna Bazar.
2. Producer Cooperative Society
Also known as industrial co-operatives, these types of societies look out for the small-scale producers in a cut-throat market scenario. Production and distribution are handled from within the co-operative. These producers could be farmers, ayurvedic herbal medicine producers, organic produce sellers, handicraft or handloom producers, artisans, etc. Raw materials, ingredients, tools, processing units, etc. needed for the manufacturing or producing the goods are obtained by the members directly, provided to the producers and the final output is distributed to the buyers/non-members without a middle link. Producers pool in their resources, increase production volumes and minimise risk in the face of the competitive capitalistic markets. Best examples are dairy, fish farmers, weavers and artisans and tribal co-operatives.
3. Co-Operative Credit Societies
These are urban and rural financial societies that provide loans to members at low rates of interest, protecting the members from massive debts to traditional moneylending agencies. They serve a basic but highly personalized banking role in a sense. They have deposit schemes in forms of saving accounts, FD, RD, pension schemes, etc. The money procured is then given on loans to members as personal loans, agricultural loans, housing or vehicle loan, etc. These societies are regularly aided by state and national government subsidies and funding. Some examples are Teachers Co-op Credit society, State Electric Board Employee Co-op Credit Society.
4. Marketing Cooperative Society
Mostly for the benefit of farmers, these societies function to market the produce profitably at the best possible prices, increase the bargaining strength of the farmers and protect them from the trials of individual selling and market exploitation. The profits are distributed on the basis of the contribution of produce made. They also educate the farmers on market prices, stabilize supply against demand, help them get loans, and help with grading, pooling, processing and procurement of produce and provide safe storage and reliable transportation facilities. Some good examples are Milk Co-operatives in Gujarat, Maha Grape, Cotton Marketing Co-ops.
5. Housing Cooperative Society
Housing co-ops are a type of society that provides affordable housing to the middle and low-income groups. One becomes a member by purchasing shares in the co-operative. Instead of owning the real estate, the members own a share in the entire corporation, which in turn gives them a house to reside in. Such societies are commonly found in urban and semi-urban cities. They construct the residences or flats and provide them to the members to live in and collect the money in instalments. In other cases, they provide the land to the members who themselves construct their own residences.
6. Co-operative Farming Societies
The financially challenged farmer may not be able to maximize his agricultural output individually and earn optimum profits. Farming co-ops are a way for farmers to retain the right to their land, yet pool together and consolidate land, livestock and equipment while earning a share in the total output as per the contribution made. In better farming co-ops, members co-operate for pre-sowing, seeds, fertilizers and equipment, and joint selling, but cultivate the land separately. In joint farming, they pool in the land as well. Co-op tenant farming is the type in which the society leases the land to the farmers and collects the rent. In collective farming co-ops, farmers are members for life and cannot remove their land but can transfer the land rights to another.
Why do Co-Operative Societies matter?
Why do Co-Operative Societies matter?
Every Indian national should acknowledge the worth and significance of co-operative societies since they are an important contributor to economic equality and welfare. Even though they are not the predominant public or private financial organizations, a flourishing network of co-operative societies improves the standard of living of the weaker and middle-income sectors of the society as agents of change and reformation.
They provide an economic model with a higher level of entrepreneurial or social sustainability and often work as pressure groups to voice the views of its members in a larger market. Being a part of a co-op improves your creditworthiness as a producer as well as a consumer. They are easy to join, ensure equitable distribution of profits, prioritize welfare over individual profits, are stable in their functioning and output, and receive a substantial amount of government support. The spirit of co-operation and unity in chasing common interests is the driving force behind co-ops. In a growing democracy, they are the symbol of meritorious collectivism.
Procedure for Registration of a Multi-State Cooperative Society
Procedure for Registration of a Multi-State Cooperative Society
An application for registration of a Multi-State Cooperative society shall be made in the prescribed form
- The application shall be signed by
- In the case of a multi-state Cooperative society of which all the members are individuals, by at least fifty persons from each of the states concerned.
- In case the members are Cooperative Societies, by duly authorised representatives on behalf of at least five such societies as are not registered in the same state;
- In case the members are other Multi-State Cooperative Societies and other Cooperative Societies, by duly authorised representatives of each of such societies; However, not less than two of the co-operative societies referred to in this clause, shall be such as are not registered in the same State.
- If the members are cooperative societies or multi-state Cooperative societies and individuals, by at least (i) fifty persons, being individuals from each of the two states or more and; (ii) one Cooperative society each from two states or more or one Multi-state Cooperative society.
- The application shall be accompanied by :-
- four copies of the proposed Bye-laws of the Multistate cooperative society, duly signed by each of the persons who sign the application.
- Name of the proposed multi-state cooperative society.
- Head Quarters and address to be registered.
- a list of persons who have contributed to the share capital, together with the amount contributed by each of them, and the admission fee paid by them.
- Area of operation.
- Main objectives
- a certificate from the Bank or banks stating the credit balance in favor of the proposed multistate cooperative society.
- a scheme showing the details explaining how the working of the multi-State co-operative society will be economically sound and the registration of such multi-State co-operative society will be beneficial for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles
- certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Central Registrar may address correspondence under the rules before registration and dispatch or hand over registration documents.
