Forming a Co-operative Housing Society

Last Updated at: Aug 26, 2022
In the coming days, a new notification from the department of cooperatives housing society will require the renovation of apartments listed under the GCS Act.


A co-operative society is best suitable for the residential building because of the common needs like a security guard, water connection, etc. and interests like common area maintenance of the flat-owners. The builders or the flat-owners can promote the co-operative housing society. Without the housing society, there will be disputes among the members or lack of interest.

A co-operative society is a perfect way for a residential building, as flat-owners have common needs (water connection, watchmen, etc) and interests (maintenance of common areas, such as the terrace and compound). If you’ve purchased a flat in a new building, it would probably be best if you took interest in forming a society. The builder is also statutorily obligated to form a society.

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For example, under the Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.

But you needn’t wait for the builder to form a society. In many states, including Delhi and Maharashtra, ten flat-owners are enough to promote a co-operative housing society. A building without a housing society usually indicates that there is a dispute between members or a general lack of interest. If you’re considering buying a house in a building where the society has not been formed, find out what the problem is. If the builder does not form a society, rights to the terrace and the compound continue to rest with him. It is asserted that 90% of the builders and promoters formed a housing co-operative society.

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Types of housing co-operative societies:

There are four types of housing co-operative societies. They are listed below:

  • Open Plot type Societies
  • Flat Owners Societies
  • Tenant Societies
  • Housing Board Societies.

Here’s what you need to do to register a housing society:

1) Submit an application for registration to the Registrar (forms available at, in case of Delhi).

2) Along with the application, you need to submit the bylaws (see below) the society wishes to adopt and the names and occupations of the promoters of the co-operative.

3) Pay registration fees. In Andhra Pradesh, this amount will be 1% of the total authorized share capital, subject to a minimum of Rs100 and a maximum of Rs10,000.

4) The minutes of the meeting in which the bye-laws were adopted.

Each housing society has a share capital, which will be paid up equally by the residents of the society, regardless of the size of the flat. Within six months of allotment, the member should receive a share certificate in this regard, according to the bylaws of Mumbai. The general body resolution can amend the byelaws. All such amendments need to be approved by the registrar. In Andhra Pradesh, however, approval is needed only if the amendment is of strategic interest to members.

Housing Society Bye-Laws

A set of rules govern the actions of all co-operative society members. These bylaws must conform with the co-operative act or rules in force in that region. In Delhi, for example, it is the Delhi Co-operative Societies Act, 2003, and Delhi Co-operative Societies Rules, 2007. A society may frame its own bylaws, so long it doesn’t contradict the act, with the approval of the concerned authority (Registrar, Co-operative Societies in Delhi).

In most cases, societies use the model bylaws that are provided, coupled with the provisions relating to housing societies in the rules and act. At times, states also release amendments to the model bye-laws. This was done for Mumbai in 2009. However, the law relating to housing societies is flexible. So there’s no compulsion for any Mumbai society to adopt the new bylaws.

Objectives of building bye-laws

  • It obeys many techniques which defend safety, health, and solace facilities such as adequate ventilation, good atmosphere, light, etc
  • Secures  public protection against commotion, flame, health obstacles, and structural negligences
  • Ensembles excellent utilization of expand
  • Guaranteed consistent advancement of buildings in a community, town and prevent accidental development

Procedure to register a housing society are: 

The first step to register a housing society is to select a chief promoter too,

  • Build a Cooperative Housing Society.
  • Elect the Chief Promoter for the formation of a new housing society.
  • Select a name for the Society along with two other alternatives

Fill the application to register along with the promoter’s name and occupation and give it to the Registrar. Pay the registration charges. Lastly, the byelaws are adopted. Each house will have a share capital that has to be paid equally by all the residents of the housing society. The housing society is very useful and necessary for the maintenance of the building.

Documents for registration:

One must hold the following documents in hand while registering a co-operative housing society:

  • Application for registering the co-operative housing society
  • All bank certificates or account statements
  • Four copies of Form No. A signed by at least 90% promoter’s member
  • Promoter member’s details
  • One must explain the working of a society
  • Extra copies of the bye-laws proposed of the society
  • Form D account statements
  • Payment of charges registered (proof)
  • Any other documents mentioned by the registrar must be submitted 
  • An advocate providing Title Clearance Certificate

After submitting all these documents, the registering authority will verify and examine it and decide if the application is valid or not

Benefits of living in a co-operative housing society:

  • Shared responsibilities
  • Amenities and facilities are better 
  • Secured investment
  • The democratic way of management and control
  • Reasonable and affordable prices
  • Service motive environment
  • Limited liability 
  • Membership is open
  • Formation is easier
  • Stable economic operations