society registration

Why is Society Registration in India important?

PUBLISHED ON: Nov 03 2022
PUBLISHED IN: Legal Guides

Society

A society is a non-profit organization that holds a group of people who mutually work to achieve a benevolent cause.

The organization usually binds together to promote its spirit of science, culture, art, literature, and other philanthropic activities. Therefore, a society is an association that works for a common goal.

With the advent of numerous societies, there was a requirement for regulation and administration.

The Society Registration Act of 1860 formulated the rules for the operation of the societies regularly.

The Act plays an important role in giving a legal framework to societies, so several states have adopted the same with or without trivial amendments.

The Society Registration Act, 1860 – Principles and Objectives

The Act is a pre-independence statute and is in effect as it provides a legal structure to Society, or else it would have been a boring non-profit charitable association. In addition, the Act has made it feasible for charitable organisations to be integrated into legal units.

The primary aim is to encourage and advance the essence of science, literature, art, or any form of charitable work that is not motivated by monetary gain.

 

The Act mentions that a Society can be created for the following reasons:

  • To endorse charity
  • Gathering of funds for military orphans
  • To promote literature, fine arts, science, and beneficial knowledge of relevant subjects
  • Building and maintaining reading rooms, public museums, libraries, or art galleries.
  • Propagation of political education

Requirements for Society Registration in India

  • There should be a minimum of 7 members to create a Society for any provided cause.
  • The Memorandum of Association (MoA) should be filed with the application and the Registrar.
  • The MoA should include the name of the Society that has registered under the Act, the governing bodies with the aspects of their names, their addresses, founding members of the Society and designations, and the Society's objectives.
  • The MoA should be appended to the Society's Rules and Regulations and signed by the Society members.
  • The meeting in which the Society was set should be suitably documented, and a copy of the same should be appended with the application.
  • The stipulated affidavits should be attached with the documents to a ₹ ten stamp paper with the title and name of the Society.
  • The address is proof of the founding members of the Society.
  • Address proof of the RO(registered office) of the Society, such as lease deed, rental agreement, sale deed, and No Objection Certificate (NOC) from the landlord if the office is a lease property
  • Specified fee for the society registration online.

Important Points of the Society Registration Act of 1860

1. The Societies registered under the Act are duty-bound to follow some rules, such as filing the annual list of members that administer the Society. This list comprises directors, committee members, governors, or any other person who holds such a position in the organization.

2. After the Society Registration is done, it is called a separate legal unit.

The Society can prosecute or be litigated by being embodied by the Chairman, Secretary, President, trustees, or any other person authorized by the respective Society's management.

3. If a court order is implemented against society, it cannot be against any society members but only in opposition to the Society and its properties.

4. A member of the Society will be sued if that member has any liabilities due to be paid as per the society rules, has any illegal property, or harms any societal property. On the contrary, if the member is blameless, costs can be traced from the Society via a court order.

5. The rationale of the Society establishment can be changed or prolonged according to the Act. In that case, a meeting needs to be conducted at least ten days before.

The meeting is held in two phases. 3/5 of the members must provide their consent to such changes, and at least 3/5th of the members must approve the novel modifications in the second phase, which is held after one month.

6. The suspension of the Society can be brought about by the acquiescence of at least 3/5th of its members or by their substitutes in the general meeting. Afterwards, the resolution of assertations and liabilities is implemented as stated in the Act.

7. If there are enduring funds or a leftover property after reconciling liabilities and claims, it is donated to another Society that is elected by the votes of 3/5th of the society members. This factor does not apply to joint-stock companies.

8. The Act states the member of the Society is a person who has paid the subscription fee and signed the roll or has not quit the post according to the rules stated in the Act.

The Act also highlights that a disqualified member has not completed the liabilities on subscription for more than three months. Such a member is not qualified to vote or is not a member.

9. The Act works with an exposition effect. Those Societies formed before this Act that function with a charitable cause can enrol under the Act at any point.

It is obligatory that at least 3/5 of the members of the Society, either present or by their proxies, have provided their consent to the same in the general meeting.

10. The documents filed by the Society with the Registrar are open to the public to be examined by paying a fee of 1 INR for every inspection.

11. The Act is appropriate to Societies that are generated for charitable purposes and the encouragement of literature, science, and fine arts.

Society Registration in India is not compulsory, but the registration endows those organizations with a legal structure and an individual unit.

The registrations could support the Societies to proceed with their goals rapidly. The Act was prepared mainly for the betterment of society and the state's well-being.

Documents For Society Registration in India

 

The important documents needed for the society registration are as follows:

  • Memorandum of association
  • PAN Card
  • Self-declaration
  • A cover letter
  • List of all the members.
  • Residence Proof 
  • Bank Statement
  • Aadhaar Card
  • Utility Bill
  • Passport
  • Driving License

Wrapping it up

The concept of building a society popped up from the aspiration to promote the organization's charitable goals like culture, art, education, music, and sports. Society registration intends to endorse clubs, groups, and societies to correlate with accomplishing the goals of an NGO. Therefore, it is necessary to do NGO registration.

The Society Registration Act of 1860 is the primary Act for integrating societies. Primarily, we deduce that this legislation is brought for the upliftment and well-being of Society at large and to support its culture, art, & education, etc., and hearten more and more people to work in the advancement of the marginalized section of Society for the country's great future.

If you are facing any issues while doing society registration, do reach out to lawgical india. Our experts will guide you thoroughly and will help you in the entire process of registration. Contact us today.

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