Cooperative Housing Society Registration

Overview of Cooperative Housing Society In India

Cooperative housing societies in India are organisations that are formed by a group of individuals who come together to collectively purchase, develop, and manage a residential property. These societies are governed by the Cooperative Societies Act of 1912 of the respective state in India.

They aim to serve the common economic, social, and cultural needs of their members through a jointly owned and democratically controlled enterprise. There are various types of co-operative societies in India, including credit societies, housing societies, agricultural societies, and consumer societies.

Co-operative societies play a significant role in India's economy, as they provide access to credit, employment, and other economic opportunities for their members. They also contribute to the development of rural and urban areas by providing essential services such as banking, insurance, and housing.

Benefits of Cooperative Housing Society Registration

Cooperative housing societies are a type of residential development where the residents own and manage their housing complex as a cooperative. Some of the benefits of registering a cooperative housing society include:

• Legal Recognition: Registering a cooperative housing society gives it legal recognition and makes it a distinct entity in the eyes of the law. This can be important for issues such as obtaining loans or resolving disputes
• Collective Ownership: In a cooperative housing society, the members collectively own the property and have a say in the management and maintenance of the society. This can be a more democratic and inclusive model compared to traditional housing societies where a single landlord or developer owns the property
• Shared Resources: Cooperative housing societies often have shared resources such as gardens, playgrounds, and parking facilities, which can be more cost-effective and environmentally friendly than each member having their own individual facilities
• Community: Living in a cooperative housing society can foster a sense of community and belonging, as members are actively involved in the decision-making process and the management of the society
• Financial Benefits: Cooperative housing societies can potentially offer financial benefits such as lower costs for maintenance and shared expenses, as well as the opportunity to pool resources for large projects.

Byelaws Governing Co-operative Housing Society

Byelaws are rules and regulations that govern the operation and management of a co-operative housing society. Some examples of byelaws are as follows.

• Only individuals who are above the age of 18 years and who have contributed to the society financially can become members
• No individual can become a member of more than one co-operative housing society
• Members must pay a one-time membership fee as well as monthly maintenance charges.

• Elections for the managing committee of the society will be held every three years
• Only members of the society are eligible to contest the elections and vote
• The election process will be conducted by an independent electoral officer.

• The society must hold a general meeting at least once in every six months
• An extraordinary general meeting can be called by the managing committee or by at least one-tenth of the members of the society
• A notice of at least 14 days must be given before a general meeting
• A quorum of at least one-third of the members must be present for a meeting to be valid.

• The managing committee of the society will be responsible for the overall management of the society
• The managing committee will consist of a president, vice-president, secretary, treasurer, and other members
• The managing committee will be elected by the members of the society
• The managing committee will be responsible for maintaining the accounts and records of the society.

Some of the other bye laws governing the co-operative housing society, in general, are as follows:

• A society, upon registration, should immediately become a member of the Housing Federation of the District. The society receives funds from the district’s Central Co-operative Bank as per the law
• A society has the right to raise funds through entrance fees, issuance of shares, loans, subsidies and donations. In order to transfer shares a prescribed amount can be charged along with the occupancy
• The structural audits of the society have to be conducted mandatorily by the body under which the registration was done. For buildings between 15 and 30 years of age, the audit will be done once in five years. If it is more than 30 years, then the audit will be once in three years
• As per the law, the area of the society should be within the towns and cities of Maharashtra.

How to Register a Cooperative Housing Society

• Step 1: To register a society, a minimum of 10 members should have a similar interest with the same objective for their mutual benefit
• Step 2: When the members are decided, a provisional committee in which everyone mutually agrees has to be formed. Out of which, a person will be selected as a chief promoter
• Step 3: Next, a name has to be selected for the co-operative society. It is to be noted that the name has to be in line with the laws
• Step 4: Upon the name selection, the members must apply to the registration authority. It must contain the details like intent to form the society, name of the society for approval, and the chief promoter’s details
• Step 5: The application fee and increase in authorised share capital have to be collected. It has to be as per the law or as prescribed by the members themselves
• Step 6: Now open a bank account per the promoter of the registering authority. It has to be in the name of the society and the amount has to be deposited in the account. Also, a certificate should be obtained from the bank
• Step 7: After completing the bank formalities, now the society registration process will be started with the necessary documents.
• Step 8: Post submission of the documents, the registrar has to verify and approve all of them If any discrepancies are found or any additional information is required, then the same has to be provided within the timeframe
• Step 9: Finally, when all the legal requirements are met and authorities are satisfied, the notification about the society registration will be published in the official gazette of the State and Central government. The registration certificate will be issued and given to the members of the society.

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Objectives of Housing Societies

• To provide a sense of community and belonging for its members.
• To provide affordable housing for its members.
• To maintain the common areas and facilities of the housing society.
• To manage the finances of the housing society.
• To represent the interests of the members to the government and other authorities.

Documents Required to Register a Housing Society in India

• Application form for registration
• Memorandum of association
• Articles of association
• List of members
• Consent letter from the landlord, if the housing society is located in a rented property
• Proof of ownership of the property, if the housing society is located in a self-owned property
• Proof of identity and address of the members
• Registration fee

Why Vakilsearch?

Vakilsearch is the go-to platform for all your legal services in India. We provide legal service at an affordable price in a hassle free way. Once the details of the cooperative housing society are verified by our expert lawyers, we start the registration process. Our process is completely transparent, and you will get timely updates from us. We will also sit with you on a call and explain the nuances of cooperative housing society. You can get assistance from our team of experts, if you have any questions during the registration process.

FAQs on Cooperative Housing Society Registration

Objectives of Housing Societies

• To provide a sense of community and belonging for its members.
• To provide affordable housing for its members.
• To maintain the common areas and facilities of the housing society.
• To manage the finances of the housing society.
• To represent the interests of the members to the government and other authorities.