Society Registration

Creating Enterprenuers & Simplifying Compliances

Special Entities

Creating Enterprenuers & Simplifying Compliances

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Society Registration

Procedure for Society Registration in India

A Society is a not-for-profit entity engaged in the promotion of charitable activities like education, art, religion, culture, music and sports, etc. A society is thus an association of persons determined to act jointly for some common purpose. In India, Societies Registration Act, 1860 lays down the procedure for registration of societies and the same has been adopted by State Governments with/without amendments. In this article, we look at the need and procedure for registering a Society.

Overview

A Society is an entity formed for the promotion of literature, science or the fine arts or the diffusion of useful knowledge/political education or for charitable purposes. As per the Societies Registration Act, 1860, a Society can be registered for the following purposes:

  • Grant of charitable assistance
  • Creation of military orphan funds
Promotion of:
  • Science, Literature, Fine Arts
  • Instruction or diffusion of useful knowledge, Diffusion of political education
  • Foundation and maintenance of libraries or reading rooms
  • Foundation and maintenance of public museum and galleries

In addition to the above purposes, based on the Societies Registration Act that is amended and implemented by the respective State Government, the purposes for which a Society can be registered in India may vary. A society can either be registered or unregistered. The registration of a Society gives the Society a legal status and is required for recognition of the society by legal authorities, obtaining income tax registrations, bank account opening and vesting of property.

Requirements for Society Registration

A Society can be registered for any of the above mentioned purposes that are not-for-profit by a minimum of seven or more persons. Besides individuals, a company or partnership firm or registered society or a foreigner may also be eligible to form a society by subscribing to the Memorandum of a Society.

The Memorandum of a Society or Memorandum of Association of a Society is a document which lays down the objects and permitted activities of the Society. The Memorandum of Association of a Society must contain the name of the society, objects of the society, details of the members of the governing body and registered office address.

DOCUMENTS REQUIRED FOR SOCIETY REGISTRATION

  • Affidavit No. 1 regarding ownership and NOC for registered office of society
  • Affidavit No. 2 regarding persons not related to each other and name of society
  • ID Proofs of all the members
  • Address Proof of all the members
  • Electricity/ Water bill (Business Place)
  • Copy of Property papers (If owned property)
  • Landlord NOC (Format will be provided)

SECTION 8 Company (NGO or NPO)

A Section 8 company is company which intends to apply its profit or income to its object i.e non profit organisation. Section 8 company refers to a Company which has the object of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other objects; A Non profit making company (Section 8) is prohibited from paying any Dividend to its members.

A Section 8 company shall register itself under charitable objects, the Central Government shall issue a License in prescribed manner allowing the association of person to register as Private Limited or Public Limited Company. The company registered under section 8 must not alter its Memorandum or Articles without approval of central government. It has the option of converting itself into company of any other type.

DOCUMENTS REQUIRED FOR SECTION 8 COMPANY REGISTRATION

  • ID proof for members
  • Address Proof
  • Passport size Photographs
  • Copy of Rent agreement(If rented property)
  • Electricity/ Water bill (Business Place)
  • Copy of Property papers (If owned property)
  • Landlord NOC
  • Director’s Directorship details (in other Companies/LLPs, if any)

ELIGIBILITY FOR SECTION 8 COMPANY REGISTRATION

  • Object must be Charitable or to promote arts, science, commerce etc.
  • Intends to apply all its profit in promoting the objectives.
  • Assures the prohibiting of the payment of dividends to any of its members.