Society registration in India
July 30, 2019
Society registration in India
A society is an organization in which a group of individuals with similar interest come together to perform some functions. The said societies are governed by the Societies Registration Act of 1860 and the said act is amended by the respective states. The societies are registered and governed as per the said act. Registration of society is required to promote the fine arts, science, literature, or knowledge sharing for a purposeful matter or for charity. On the other hand, society is also formed for the maintenance of a residential or commercial complex or for creating the Apartment Association.
Online Society Registration – A detailed process
:-For registering a society, the following criteria must be fulfilled:
Members: Minimum of seven members for a state society and a minimum of eight members from eight different states (one in Delhi) is compulsory
Jurisdiction: Where the registered office of the society is situated. Before the District Registrar in the particular area. For example, Charity Commissioner in Maharashtra.
Governing Act: The societies are governed by the Societies Registration Act of 1986.
Property management: The property of the society vests in the name of the society and the same can be sold as per the terms mentioned in the bye-laws of the society. (e.g., approval from the Executive Committee Member)
Dissolution or closure: Dissolution as per the bye-laws of the society, upon dissolution and after settlement of all debts and liabilities, the funds and property of the society may not be distributed among the members of the society, rather, the remaining funds and property must be given or transferred to some other society, preferably one with similar objects.
Board: Executive Committee(President, Secretary, Vice President, Treasurer), General Body (All members)
Annual compliance: Societies must file annually, with the Registrar of Societies, a list of the names, addresses and occupations of their managing committee members.
Memorandum of Association or MoA: The Memorandum of Association basically contains the name of the society, registered office address of the society, the area of its operations, and the objectives for which the society is established.
Bye-laws: The bye-laws of the society is considered as the constitution of the society and it contains the role and responsibilities of the Executive Committee members which includes its President, Vice President, Secretary, Joint Secretary and Treasurer. It also mentions the qualification of the members, eligibility, term and termination and all the other processes for the functioning of the society is mentioned in the bye-laws.
Proof of registered office – (rental agreement or ownership document)
ID proof of all the members of society
A trust shall after its registration shall do the following:
Obtain PAN card
Open a bank account
Bookkeeping and accounts
Annual IT filings
Shops and establishment license – in case of employment
Professional tax registration, if applicable
GST registration, if applicable
Compliance with the Registrar of Firm – Filing of AGM resolution, accounts to be disclosed and member list to be filed with the Registrar of Firms.
Applicability of tax exemption
There is a general notion that society need not pay tax as they work towards the welfare of the public at large. But this is not true. A society, like any other legal entity, is liable to pay tax. In order to be exempted from tax, a society is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the income tax authorities.