Society Registration comes with multiple benefits. Read on to Know the Advantages Offered by Society Registration in detail.
Overview
Society refers to a group of individuals sharing the same social interests, territory, and cultural perspective. For the registration of a particular area, certain procedures have to be followed as per the Society Registrations Act. This Act was created by the Government of India to ensure the advancement of art, culture, legal framework, science, and literature by local societies in various states of India. Also, under this Act, it is possible to promote area-wise awareness through society registration based on various issues. Several states in India follow this Societies Registration Act closely and some states have adopted it by adding certain rules to the Act. Know the Advantages Offered by Society Registrations.
A society is a group of dedicated volunteers who work together for a humanitarian purpose. Society is designed to foster knowledge of a certain community and to promote the advancement of many sectors such as fine arts, science, and literature. Aside from that, Society provides the following functions:
- Creating libraries where they are needed.
- Setting up public museums, reading rooms, and an art gallery.
- The conservation of natural history
- Amassing and preserving mechanical and philosophical inventions.
Objectives served by Society as per Governing Legislation
The governing legislation of society serves several objectives. Here are a few points for you to keep in mind:
- It provides a legal framework for the formation and functioning of societies.
- It ensures transparency, accountability, and compliance with regulatory requirements.
- The legislation aims to promote the welfare and well-being of society members.
- It facilitates the efficient management and administration of society affairs.
Purpose of Society Registrations
- Registration is a mandatory requirement for societies under the governing legislation.
- The purpose of registration is to establish the legal identity and existence of the society.
- It provides legal recognition and protection to the society and its members.
- Registration ensures that the society operates within the framework of the law and fulfils its obligations.
- It enables society to engage in legal transactions, own property, and enter into contracts.
Features of Society Registrations
- The Society Registration Act 1975 requires a minimum of 7 members for society registrations.
- A society with at least 20 members or an annual gross income/expenditure of at least ₹10,000 is eligible for registration.
- For apartment maintenance, at least 5 members are required for registration.
- The Society’s management handles an Executive committee consisting of 3 members.
- Societies must be registered within 3 months from their formation date with the District Registrar.
- Registration can be initiated by a committee member or an authorised person.
Annual Returns:
Annual returns are periodic filings required by the governing legislation for registered societies.
- Societies need to submit annual returns within the specified timeframe, on an annual basis.
- The annual return provides information about the society’s activities and finances. Also, the governance during the ruling period.
- Details such as income and expenditure statements are included. Membership updates and changes in the governing body are also mentioned.
- Annual returns contribute to transparency, accountability, and monitoring of the society’s operations.
What Are the Advantages Offered by Society Registrations?
It works for the promotion of local literature, science, culture, art, etc. as per Section 3 of the Societies Registration Act 1860 of the Constitution of India. It is possible to carry out multiple creative functions for the benefit of the residents of a particular area. In this case, multiple registration benefits are observed. Some such advantages of registration are discussed below
- It is possible to give a legal entity through registration to society present in a particular area.
- A person or an entity can avail of benefits like sale, purchase, or lease by joining this scheme.
- Societies incorporated under the Society Registration Act enjoy tax exemption.
- Only the members of the society are liable to bear the debt and liability for the unethical or illegal acts committed in a particular society.
- Incorporated societies must fulfill the minimum criteria of the Incorporated Societies Act 1908.
- Through a specific society bank account can be opened to deposit society funds.
- A society can get a recognized place in front of forums and authorities through registration.
- A society can get a chance to receive charitable help through it.
- A society can get the opportunity to improve its culture, science, and literature through registration.
- Under this scheme, members of a society can legally obtain foundation or maintenance funds for facilities like riding rooms or libraries.
Accounts and Registers:
- Registered societies must maintain accounts and registers.
- Accounts track financial records.
- Registers contain important information.
- Maintenance ensures transparency, auditing, and decision-making.
- Legislation specifies format, content, and retention period.
Society Registrations Supporting Documents:
- Required documents: memorandum, articles, and bylaws.
- Additional documents: proof of address, identity proofs, and minutes.
Documents confirm the society’s formation, objectives, and information for registration.
Delay in Filing:
In some cases, there may be a delay in filing the registration application. The governing legislation may provide provisions for condoning the delay or granting a grace period. However, there could be limitations on the extent of delay that can be excused. The decision to accept delayed filings is typically evaluated on a case-by-case basis. They consider the reasons for the delay and the merits of the application.
Fee Structure:
The registration process for societies may involve the payment of certain fees. The governing legislation specifies the fee structure, which may vary based on factors such as:
- Type of society
- Size,
- The services provided.
The fees collected contribute to the administration, maintenance, and regulation of registered societies.
Eligibility Criteria for Obtaining Society Registrations:
- The society must consist of at least seven individuals.
- Each participant must be older than 18.
- The members shouldn’t have been declared ineligible under the legislation.
Rules and Regulations of the Society:
Every registered society is required to have its own rules and regulations. Other operational facets of the society such as:
- The governing structure,
- decision-making procedures
- requirements for membership, are all defined by these rules and regulations.
Clear, consistent, and efficient operations are ensured in this case
Society Compliances Post Registration:
- Post-registration obligations: annual returns, accounts and registers, regular meetings.
- Complying ensures transparency, accountability, and proper governance.
Applicability of Tax Exemption:
Registered societies may be eligible for tax exemption under certain conditions.
- Tax exemption criteria are determined by governing legislation or tax laws.
- Specific requirements for tax exemption based on society’s objectives, activities, and compliance
How To Apply for Society Registrations
Application for society registration is done through several procedures under the Societies Registration Act, of 1860. Below are the details steps. and know advantages offered by society registrations
- Society registration rules vary from state to state. Therefore, before registering a particular society, members must research the appropriate rules.
- The next step is to identify the location of the society registration office according to the specific state.
- Members have to choose a specific name of the society for registration.
- A Legal Practitioner should arrange for the Society’s Memorandum of Association to be drafted.
- Once the Memorandum of Association or MOA is drafted it should be signed by the society members.
- A minimum of three members must sign to agree to the rules and regulations of the society as stated in the MOA.
- After that, go to the Registration Office and submit the application form along with this MOA along with other required documents.
- This submitted form will get approval from the state-level authority or they may ask for some other necessary documentation.
- In terms of these documents, letters, and legal information, a society can come under the registration of society in a particular state.
Fees
The fee payable for society registrations may be ₹50 or less. It is changed by the government from time to time. Many times variation in registration fees is also observed state-wise or local-wise. This variable fee structure is subject to change as per Section 3 of the Societies Registration Act. According to this Act, this registration fee is handed over to the Government by way of a Memorandum of organization and Registrar. Any payment made in this manner is fully received by the State Government.
Online
Nowadays, due to growth of technology, society registration can also be performed online registration procedure and amount of fee vary depending on the economic and technological structure of different states. The procedure for society registrations online is discussed below.
- The application form has to be filled out from the society registration portal of the particular state.
- Documents and proofs required for society registration are to be uploaded on the online portal of the respective state.
- Payment of the registration fee prescribed by the government should be made through digital banking transactions on that portal.
- At the same time, the hard copies of the original documents of the members should be delivered to the Registrar’s Office of the specified state through courier.
- Copies of these documents will reach the authority from the drop box of the District Registrar’s office and because of this, the society can get registration approval.
Society Registrations Documents
The documents which are required for registration of a new society under the Society Registration Act. are mentioned below:
- A list containing the data of all the members present in the society is considered a necessary document for society registrations.
- A memorandum of association drafted by legal practitioners.
- The MOA must be signed by society members in front of gazetted officers and notaries public, chartered accountants, and other legal persons.
- The MOA document should mention the name of the society, its object, details of members, rules, and regulations.
- All members have to provide a list mentioning PAN or Permanent Account Number.
- Society members have to provide a copy of their Aadhaar, or voter card as residential proof.
- Prepare a cover letter and provide it with all documents, lists, and documentation.
Conclusion
Society is an entity consisting of a group of people who share the same social and moral perspectives. Residents attending a particular society through registration have the opportunity to get government assistance towards their social development. At the same time, the registered society can also get area-based political and legal assistance through it. Also, financial support like loans and tax exemption is available through society registrations. Societies covered under the Societies Registration Act 1860 enjoy several governments and income tax benefits. If you are looking to get some help, our team of legal experts at Vakilsearch can be your best bet.
If you want to fulfil any of your dreams that come with charity, it is a good step for you to start a society. When at least 7 members share a common interest, to advocate the science, fine arts, literature, or knowledge, society can be formed. In case of any queries, please contact our society registrations experts at Vakilsearch. We will be happy to assist.
