Contemplate the legal implications for a society registered under the Societies Registration Act, 1860. Explore the nuances of whether such societies can be subjected to the Corporate Insolvency Resolution Process (CIRP).
Introduction
Society Registration In Karnataka – Societies, as organized groups of people working towards the non-profitable welfare and development of society, play a crucial role in shaping the communal fabric. Registering these societies not only provides them with legal identification but also opens avenues for tax exemptions.
In this article, we will explore the intricacies of society registration in Karnataka, shedding light on the Societies Registration Act of 1960, the conditions for registration, and the exhaustive process of renewal.
Societies Registration Act of 1960
The Societies Registration Act of 1960 governs the registration of societies in India, including the state of Karnataka. This legislation facilitates the registration of literary, scientific, charitable, and other societies, ensuring their compliance with legal norms. Any society formed with charitable intentions, aimed at providing financial support to its members for business, profession, or trade, can seek registration under this act.
However, certain activities, such as those of self-help groups, business-oriented societies, pensioners’ associations, and housing societies, fall outside the scope of the Societies Registration Act of 1960.
Societies Eligible for Registration
Under the Karnataka Societies Registration Act of 1960, societies engaging in various activities are eligible for registration. These include:
- Promotion of charitable activities.
- Promotion of education, science, art, literature, or fine arts.
- Promotion of sports.
- Dissemination of information about business and industry.
- Political education training.
- Maintenance of a library.
- Technical and philosophical research, including the gathering and preservation of historical artifacts.
Society is an organized group of people with the sole objective of rendering non-profitable services for the welfare and development of society. Registration of such societies will facilitate legal identification and tax exemption ebefits. One can also register for society online with the help of Vakilsearch.
Conditions for Society Registration
To register a society in Karnataka, certain conditions must be met:
- A society, excluding those with the State Government as a member, should be formed with a minimum of seven individuals, each aged 18 or above.
- The society’s objectives should align with charitable intentions, excluding business-oriented activities.
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Society Registration Process in Karnataka
Embarking on the journey of society registration in Karnataka involves a systematic and detailed process, ensuring compliance with government regulations. Here is a step-wise guide to the registration process:
Step 1: Documentation
Initiate the process by meticulously preparing the required documents for society registration. Adherence to government-prescribed rules and regulations is imperative at this stage. Incomplete or inaccurate documentation may lead to application rejection.
Step 2: Selecting a Unique Name
Choose a name for the society that not only reflects its founding objectives but is also distinct from existing organisations, registered trademarks, or any names already in use. A memorable and unique name is essential.
Step 3: Drafting a Memorandum of Association (MOA)
The constitution of the society is encapsulated in the Memorandum of Association (MOA). This document outlines the society’s connection with its shareholders and articulates the purposes for which it is established.
Step 4: Rules & Regulations
Formulate rules that govern the internal affairs of the society. This includes defining the quorum for meetings and delineating the duties of key office bearers such as the president, secretary, and treasurer in their official capacities. Rules and regulations must be signed by at least three members of the governing board.
Step 5: Application for Registration of Society
Submit an application to the Registrar of the society, accompanied by the duly signed MOA, the society’s rules, affidavit declarations, and KYC papers of the society’s members and officials.
Step 6: Issuance of Certificate of Society Registration
The process of society registration in Karnataka typically takes around a month. After reviewing the application, the registrar may either approve it or request additional information if necessary.
Fee For Society Registration In Karnataka
The fee structure for society registration in Karnataka is as follows:
- State-level society registration incurs a fee of ₹ 18,000.
- National-level society registration incurs a fee of ₹ 23,000.
Eligibility Criteria for Society Registration
The eligibility criteria for society registration typically encompass the following key aspects:
- Minimum Members: A minimum of 7 members is essential to initiate the formation of a society.
- Common Objectives: The members must align with a shared set of social, cultural, charitable, literary, scientific, or other non-profit objectives.
- Non-profit Intent: The primary purpose of the society should be the promotion of community welfare, without the intention of generating a profit.
- Jurisdiction: The society must be established within the jurisdiction of the relevant government authority, adhering to the applicable legal framework.
- Legal Capacity: Members should possess the legal capacity to enter into contracts and actively participate in the formation of an organisation.
How to Check Online Status of Society Registration?
To check the online status of a society registration, follow these steps:
Step 1: Identify the Official Website
Begin by identifying the official website of the relevant government authority responsible for society registrations.
Step 2: Search for ‘Status Check’
Navigate through the website to find a dedicated section or tab for checking the status of society registrations. This is often labelled as ‘Status Check’ or a similar term.
Step 3: Enter Required Details
Once you locate the status check section, provide the required details for verification. This may include the registration number, application ID, or other pertinent information.
Step 4: Check Status
After entering the necessary details, proceed to check the status. The system should provide real-time updates on the registration status of the society.
Additional Steps:
In the event that an online status check option is not readily available on the website, explore alternative communication channels. Look for contact information such as phone numbers or email addresses to inquire about the status. Additionally, consider visiting the office of the relevant agency in person to seek information on the society registration status.
Importance Of Society Registration In Karnataka
The importance of society registration in Karnataka is multifaceted and plays a pivotal role in various aspects:
Legal Recognition:
Society registration offers formal recognition, establishing the society or non-profit organisation as a legal entity with distinct rights and responsibilities.
Access to Funds and Resources:
Many government bodies, private foundations, and corporate entities require a valid registration certificate before providing financial grants, funds, or other resources. Registration enhances the society’s eligibility for such support.
Limited Liability:
Society registration often comes with the added advantage of limited liability. This shields individuals associated with the society from personal liability, reinforcing a protective legal framework.
Credibility and Trust:
Possessing a current registration significantly enhances the credibility of the organisation. It instils trust among partners, donors, and the general public, showcasing the society’s commitment to transparency and adherence to legal norms.
Benefits & Tax Exemptions:
Society registration is a prerequisite for enjoying benefits and tax exemptions provided under applicable regulations. Verification of registration status is essential for compliance with tax laws and eligibility for tax-related advantages.
Renewal of Society Registration
The renewal of society registration is a critical process under the Karnataka Societies Registration Act of 1960. Society registration is initially valid for one year, and renewal becomes necessary thereafter.
Failure to adhere to renewal requirements may result in the society losing its certificate of registration. During renewal, considerations such as changes in society membership, addition of new members, and transfer of powers are taken into account.
Points to Consider Before Renewal
Several key considerations must be kept in mind before embarking on the renewal process:
- The certificate’s validity period must have ended no later than one year prior.
- If a society was unregistered and became a society within the previous year, it must include a notarized affidavit.
- Renewal requests submitted more than a year after the original expiration date must include a statement asserting that the society is not embroiled in litigation.
Documents Required for Society Renewal
For the registration of a society in Karnataka, the requisite documents include:
- Information in Form A: Submission of essential details in the specified form.
- Memorandum of Association and Rules and Regulations: Duly attested by one of the subscribers to the memorandum, authorised by the proposed society.
- Bye-laws of the Association: Clearly outlining the rules and regulations governing the society.
- List of Executive Committee: Attached to the Memorandum of Association, including photographs and signatures of committee members.
- Proceedings of the First Meeting: Documentation of the initial meeting held to establish the society.
- Challan for Prescribed Fee: Providing evidence of payment of the requisite fee.
- Affidavit on ₹ 20/- E-Stamp Paper: Duly notarised, affirming the accuracy of the submitted information.
- Proof of Identity and Address: Any one of the following:
- Aadhar Card
- Voter ID
- Driving License
Address Proof of Proposed Society: Including a rental agreement or tax payment receipt with NOC.
Types of Societies
Societies can be categorised based on their primary objectives and purposes. Various types of societies are outlined below, each serving a distinct societal need:
Charitable Societies:
Objective: Uplifting the underprivileged section of society and executing projects for their welfare.
Educational Societies:
Objective: Advancing and disseminating knowledge through the establishment and management of educational institutions.
Cultural & Art Societies:
Objective: Preserving, promoting, and nurturing the diverse cultural heritage of a region, such as Karnataka.
Environment Societies:
Objective: Working towards ecological conservation, sustainable development, and fostering environmental awareness.
Health & Medical Societies:
Objective: Addressing public health concerns, providing healthcare services, and engaging in medical research.
Women’s Empowerment Societies:
Objective: Promoting gender equality and empowering women economically, socially, and politically.
Sports Societies:
Objective: Promoting sports activities, organising tournaments, and encouraging physical fitness.
Youth Development Societies:
Objective: Focusing on the overall growth and development of young individuals by providing platforms for skill development, leadership training, career guidance, and entrepreneurship initiatives.
Conclusion
Understanding the renewal process for society registration in Karnataka is essential for societies to maintain their legal standing and continue their non-profitable activities. With legal intricacies involved, seeking assistance from professionals like Vakilsearch can ensure a smooth renewal process. As society registration is a legal matter, the expertise of legal professionals becomes indispensable.
Vakilsearch’s experienced legal team can guide individuals and societies through every step, ensuring compliance with the Karnataka Societies Registration Act of 1960 and other relevant laws.
FAQs
How to register an old students association in Karnataka?
To initiate the registration process for an alumni association in Karnataka, adhere to these steps:
- Collect essential documents, including the identification and address proof of members.
- Formulate a memorandum of association and establish rules and regulations.
- Present the documentation to the Registrar of Societies in Karnataka.
- Fulfill the requisite fees and await the approval process.
- Upon approval, the association achieves official registration status.
What is Section 6 of the Society Registration Act?
It is stipulated that any individual with a claim or demand against the society may file a lawsuit against the president, chairman, principal secretary, or trustees. This is permissible if, upon application to the governing body, no other officer or person is nominated to serve as the defendant.
What is Section 23 of the Society Registration Act 2001?
Central Government Act Section 23 of The Societies Registration Act, 1860 states that the dissolution of a society can be carried out in accordance with the prescribed procedures. If a specific date is set for the dissolution of a society under sub-section (1), the society's registration shall be automatically cancelled.
What is Section 49 of the Registration Act in India?
Section 49 addresses the consequences of not registering documents as mandated by section 17 or any provision of the Transfer of Property Act, 1882 (4 of 1882). Such non-registration shall not impact any immovable property mentioned in the document.
What is Section 17 of the Registration Act in India?
Section 17 of the Registration Act oversees the registration of various documents, imposing the requirement to register these documents at the Sub-Registrar's Office. Failure to comply with this obligation renders the deed void. Among the numerous documents that necessitate registration are partition deeds, sale deeds, and gift deeds.
