It is a membership based legal entity subject to local and national laws. We help you in its registration and formation in 3 simple steps
A co-operative housing society is formed through mutual cooperation among the members who share a spirit of unity and camaraderie. Co-operative housing societies are much economical than independent flats as all the basic facilities, interests and responsibilities are equally shared. This includes major repair works; better amenities like swimming pools, parks, etc. In some states, the builders of the flats may also be statutorily obligated to form a society. For example, under the Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.
According to the Maharashtra government, every housing society needs to follow the laid rules. Following are some of the key legal facts to be noted.
Step 1: In order 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 have to make an application 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 entrance fee and share capital have to be collected from. It has to be as per the law or as prescribed by the members themselves.
Step 6: The next step would be to 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: Registration of the society is the next step upon completing banking formalities. The documents required for this are: list of promoter members, bank certificate, copies of affidavits and documents specified by the Registrar, copies of the byelaws and explanation of the working of the society.
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 satisfied, the notification about the society’s 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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