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.
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:
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.
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.
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.