Know everything about SOCIETY
What is Society and Who is Considered as a Society?
A society is made up of individuals who gather together to work toward a common goal. Societies can be established for a variety of purposes, including philanthropic endeavours, the advancement of sports, education, art, and culture, among others. To guarantee a society's legal existence and legitimacy, registration is a crucial first step.
What is the difference between Society and Society Registration ?
A "Society" is an organized collection of people who work together to achieve a shared purpose, which is usually social, cultural, or humanitarian in nature. The organization is guided by common goals, such as advancing education, social welfare, or scientific development, and operates under a set of internal rules or by Laws.
"Society Registration" refers to the legal process that grants the society formal recognition under the law, often under India's Societies Registration Act, 1860.A society gains a distinct legal personality that separates it from its members, allowing it to own property, create bank accounts, and engage in legal activities. Additionally, registered societies are subject to regulatory restrictions, which promote transparency and responsibility.
Thus, while a "society" is the organisation itself and the “society registration” refers to the formal legal process by which a society gains official recognition and legal privileges.
What is India Societies registration Act,1860?
The Indian Societies Registration Act of 1860 is a statutory framework for registering and regulating societies in India. Its principal goal is to encourage the formation of organizations dedicated to humanitarian, social, cultural, or educational goals. The Act enables a group of people, normally a minimum of seven, to organize a society and operate under a distinct legal identity. This legal recognition enables societies to hold property, execute contracts, and sue or be sued in their own names, thereby creating a framework for accountability and governance.
What is the minimum member to be required to establish a society?
At least 7 People required to form a Society
(To be Noted – 7 members individually must be an Adult and more than 18 years of age and individually all 7 members must do Memorandum of Association as defined under the section 1 of the India's Societies Registration Acr,1860
These are the general criteria to be eligible in the Indian Registration:
1.The society must have a minimum of seven members.
2. All the members should be above the age of 18.
3. The members should not have been disqualified by law.
Why is Society Registration Important?
A society can gain legal status and protection by registering. Additionally, it gives the society the ability to own property, enter into contracts, and file or defend lawsuits on its behalf. Additionally, registering as a society facilitates fund-raising and grant applications to the government and other institutions.
As Societies is dealt and Registered under the India Societies Registration Act,1860 Whereby under it there are Proper Law and rules mentioned that how any Societies can register and with the Proper steps of Registration which is mentioned the Act.
The Following steps as recognized by the Registration Act to register a society in India with the following ways:
· Deciding of a Society Name: Selecting a society name is the first stage in the registration process. There should be no resemblance to any existing registered society's name.
· The Memorandum of Association (MoA) should be prepared. The MoA is a written statement of the society's goals, purpose, and regulations. Every member of the society as well as two witnesses should sign it.
· Draft the Rules and Regulations: The rules and regulations of the society should be written in accordance with the MoA. It ought to address topics like meetings, membership, management, and money. It should include all required information, including the society's name and address, the members' names and addresses,
· Prepare the Application: The application form for society registration should be completed with all required information, including the society's name, address, and members' names and addresses as well as the society's goals.
· Submit the Application: The Registrar of Societies should receive the application form, the MoA, and the rules and regulations. The registrar may request more information or papers.
· Acquire the Certificate of Registration: The society will receive a certificate of registration if the registrar is pleased with the application. The society's legal existence is attested by this certificate.
What are the Required Document during the time of the Registration of a societies with the prospective of India’s Societies Registration Act,1860
1.Memorandum of Association (MoA)
2.Rules and Regulations
3.Application Form
4.Address Proof of Registered Office
5.Identity Proof of Members
6.PAN Card of Society
7. Bank Account Details
What are the benefits of the Registration of a Society?
Although registration is not required by the Act, there are a number of benefits to doing so. By obtaining legal registration, a registered society becomes a separate legal body. This recognition gives the society the legal ability to start or defend legal actions as well as the ability to deal in real estate, including buying, holding, and selling.
Society’s standing as an entity with legal authority is improved;
Access to a number of features is made possible by a society registration;
It covers the rights to purchase, sell, lease, and rent real estate. Although a society’s membership may change over time, the organization will always be a separate entity;
The Society may be free from income tax if it is incorporated. In the event that criminal activity occurs, the members are liable for the debts and obligations;
Members are obligated to repay any obligations they accrue while pursuing financial gain They are not responsible otherwise. The Society must adhere to some minimum requirements set forth in the Incorporated Society Act of 1908 &Tax Benefits.
What are the limitations of registering as a society?
There are restrictions on registering a society, especially when it comes to its non-profit status. Profit sharing among members is strictly forbidden for societies; all proceeds must be used to further the goals of the organization, such as cultural, educational, or humanitarian endeavours. Because doing so could result in deregistration or the loss of non-profit status, this prohibits societies from taking part in any major commercial or profit-making operations. As a result, societies must rely significantly on outside funding sources such as grants, contributions, and sponsorships—all of which can be erratic and inadequate during recessions. The intricate compliance requirements are yet another drawback. In addition to conducting yearly audits and keeping thorough financial records, registered societies are required to submit these documents to the Registrar of Societies or other appropriate authorities.
What are the fees for Society Registration ?
The fees for society registration vary from state to state. In general, the registration fee can be decided even by the State govt or Central Level Government and also the fee can also be increase anytime by notified Gazette. The fees may also vary depending on the type of society being registered, such as a charitable society or a sports society.
Conclusion
In order to function as legal entities and pursue particular goals, organizations must first register as societies. A society can gain legal registration and protection by fulfilling the requirements and qualifying, which opens up the possibility of raising money, signing contracts, and owning property. Although yearly compliance requirements must be fulfilled, the advantages of society registration exceed the work required and offer a forum for people to unite and collaborate toward a shared objective.