Read this blog to learn more about the benefits of society registration in India.
A society is “a group of people with shared interests who work together to fulfill a purpose.” They are usually registered to promote charities in various fields. These include culture, art, sports, education, music, and religion. In India, the Society Registration Act outlines how to recognize a society.
These steps are necessary for compliance with the law. This Act aims to strengthen the legal requirements for Society Registration. It seeks to promote the development of science, literature, and fine arts. It also aims to spread information for charitable purposes. Several of India’s state governments have approved the Act, either as is or with changes.
The Act requires the founding members of a Society to meet several conditions before it can be registered in a state. The Society must comply with the government’s post-registration rules after it registers.
The Reason Behind Registering a Society
A Society Registration can be done for any of the following reasons, according to Section 20 of the Act of 1860:
Natural history collections. Funds for military orphans. Collections of inventions and designs. Donations to charities. Support for the fine arts. Political education. Public museums or galleries. Sharing practical knowledge. Public libraries or reading rooms.
The Numerous Advantages of Society Registration
- The position of Society as a legal body is elevated.
- A Society Registration grants access to various capabilities. It includes the right to sell, buy, rent, and lease property.
- A Society’s membership could shift throughout time, but the Society will always exist as a distinct institution.
- If Society is incorporated, it is eligible for an exemption from income tax.
- If illegal acts take place, the members are the ones who are held responsible for paying the debts and responsibilities.
- If members incur debts in the pursuit of profit, they must pay. Otherwise, they are not liable.
- The Incorporated Society Act of 1908 requires the Society to meet some minimum standards. This is to reassure its members.
- Society can open new bank accounts.
- Society advances its reputation in the eyes of both the Forums and the Authorities.
Distinguished Characteristics Of The Society
- In India, the Societies Registration Act is the governing body responsible for regulating how societies behave.
- To initiate the formation of a society, there must be a minimum of seven participants.
- The Society’s founding members must submit an MOA to the registrar of societies in the state where its headquarters are located. The MOA is a formal declaration. It combines all parts, including the objectives. They reflect the Society and its members’ core functions.
- The societies under Section 25 must meet the legislative requirements that are less stringent.
- Societies have the right to retrain and recruit members of their existing workforce to contribute to a shared goal.
- Dissolving a society is simple. It requires no complex rules or tedious paperwork.
- Society operates in a democracy. It seeks to prevent monopolies in the hierarchy.
- The Society’s democratic rules let its founders easily remove any conflict-causing, adversarial members.
Some Key Considerations Regarding the Registration of Societies in India:
To successfully register a society in India, at least seven members must be present. In case of the Benefits of Society Registration in India, the members should agree with the first name of the society and then also prepare the Memorandum which gets followed by all the rules and regulations.
In India, Partnership Firms and Societies can be registered, whereas Societies can also choose to be unregistered. The only societies that will be able to endure assigned properties and have an ensemble filed against or by the Society will be the registered societies.
Consequences of Belonging to an Unregistered Society:
- Until and unless it is registered under the Societies Registration Act of 1860, a society cannot function as a separate legal entity in the eyes of the law.
- Because it has not been registered, Society has no authority to enforce any legal process in court to resolve legal problems.
- The provisions of the Income Tax Act that allow for tax exemptions cannot be utilized by unregistered societies.
- A society operating outside the legal system’s purview is considered immaterial.
- It is unreasonable to expect an unregistered society to be able to transfer ownership of properties into the name of the community.
Society is a constitutional body propelled by the effort of volunteers who desire development and nothing else. This development is the only goal of Society. By registering according to the law, Society may operate at maximum capacity and enjoy financial and legal advantages. As a result, we can conclude that ignoring registration is not at all a prudent course of action. A society registered following the Societies Registration Statute of 1860 is entitled to limitless relief from the requirements of the income tax act.
Conclusion:
When it comes to society registration, then the process does involve a few legal steps and this is where you can take support from Vakilsearch for the same.
