Know About Society Registration in India

A Society refers to a non-profit organization formed for the purpose of promoting charitable activities, education, culture, religion, art, literature, science, or social welfare. It is not a company in the commercial sense, but rather a registered group of individuals united by a common non-commercial objective. To give it a legal identity, you need to register your society under the Society Registration Act, 1860.

Let us explore the concept of society registration and its purpose, process, and documents in this article.

What is Society Registration?

Society registration is the process of legally formalizing a group of individuals united by a shared purpose such as charity, culture, education, or social welfare. This is governed by the Societies Registration Act, 1860, and grants the society a legal identity, which enables it to own property, open bank accounts, and access government benefits. Forming a society requires at least seven members, and the application is sent to the state's Registrar of Societies.

Societies Act,1860

The Societies Registration Act, 1860, is a law that provides a legal framework for registering non-profit organizations formed for purposes such as charity, science, education, literature, or the arts. It was passed during British rule and gives any group of seven or more people the legal status to register as a society, own property, enter into contracts, and file or defend lawsuits on their behalf.

Eligibility Criteria for Society Registration

The following details include the eligibility criteria for society registration:

• Minimum Members: At least seven individuals who are all above 18 years of age are required to form a society. 
• Eligible Entities: Indian citizens, foreign nationals, companies, and other registered societies can become members. 
• Common Objective: Members should share a lawful purpose, such as promoting education, science, literature, fine arts, charity, or social welfare. 
• Memorandum of Association (MOA): A foundational document stating the society's name, objectives, registered office address, and details of the governing body. 
• Rules and Regulations: A document outlining the society's internal management, which includes membership criteria, meeting procedures, and roles of office bearers. 
• Governing Body: A committee typically comprising a President, Vice-President, Secretary, Treasurer, and other members responsible for managing the society's affairs. 
• Registered Office: An official address for the society, along with a No Objection Certificate (NOC) from the property owner if the premises are rented. 
• Application Submission: The MOA, rules, and regulations, as well as the application, must be submitted to the state's Registrar of Societies.
• Legal Recognition: After successful registration, the society gains legal status, which allows it to own property, open bank accounts, and access government grants and tax exemptions. 

Purpose and Benefits of Society Registration

Registering a society in India provides legal recognition and numerous benefits to groups aiming to serve the public good. They are mentioned as follows:

• Legal Recognition: Registration grants the society a distinct legal identity, which allows it to own property, enter into contracts, and initiate legal proceedings in its name. 
• Access to Funding: Registered societies become eligible for government grants, donations, and other funding opportunities, which enhances their capacity to undertake projects. 
• Tax Benefits: Societies can apply for tax exemptions under Sections 12A and 80G of the Income Tax Act, which makes them more attractive to donors. 
• Credibility and Trust: Legal status boosts the society's credibility among stakeholders, which include donors, beneficiaries, and government agencies. 
• Structured Governance: Registration necessitates a formal structure with defined roles and responsibilities, which promotes accountability and effective management. 
• Perpetual Succession: A registered society continues to exist despite changes in membership, which ensure continuity of operations. 
• Property Ownership: The society can acquire, hold, and transfer property in its name, which facilitates asset management. 
• Legal Protection: Members are generally not personally liable for the society's debts, which provides a layer of financial protection. 
• Collaboration and Networking: Registration enables societies to collaborate with other organizations and participate in joint initiatives, which expands their reach and impact.
• Limited Liability: Members are generally not personally liable for the society's debts or liabilities, which protects their personal assets.
• Banking and Financial Operations: Registered societies can open bank accounts in their name, facilitating transparent financial transactions and operations.

Society Registration Process in India

Registering a society is an important step for individuals or groups aiming to work collectively towards non-profit objectives. Let us discuss the society registration process in the following details:

Step 1: Choose a Unique Name

You need to select a name that reflects your society’s objectives. Ensure that it is not similar or identical to existing society names and doesn’t violate provisions of the Emblem and Name Act, 1950.

Step 2: Prepare the Memorandum of Association (MoA)

After you have chosen the society name, prepare an MoA, which will outline the society’s objectives, details of the founding members, and the registered office address. It must be signed by all the founding members and witnessed by the officer, notary public, or magistrate.

Step 3: Draft Rules and Regulations

This document governs the society’s internal management, which includes the membership criteria, meeting procedures, and roles of office bearers.

Step 4: Gather Required Documents

You must collect all the necessary documents listed below:

• PAN cards of all members
• Address proof such as a passport or utility bills
• No objection certificate (NOC) from the property owner of the registered office
• An affidavit declaring the society’s non-profit nature
• Minutes of meeting approving the society’s formation

Step 5: Submit the Application to the Registrar

The application should be submitted to the state's Registrar of Societies, which is where the society's registered office is situated. Attach the MoA, the rules and regulations, and all the required documents. Pay the registration fee, which varies depending on the state.

Step 6: Obtain Certificate of Registration

After successful verification, the registrar issues a certificate of registration that officially recognizes the society. This process typically takes around one month.

Documents Required to Register a Society

Here is the list of all the documents needed to register a society in India:

• PAN card of all founding members
• Proof of residence for all members, such as Aadhaar, passport, utility bills, or driver's license.
• Memorandum of Association (MoA) detailing the society’s objectives and member details.
• Rules and regulations that govern the society’s operations.
• Proof of registered office address, such as an electricity or water bill.
• No objection certification (NOC) from the property owner if the place is rented.
• List of governing body members with their signatures.
• Covering letter requesting registration, which should be signed by all founding members.
• Affidavit/Declaration by the president or secretary affirming the society’s non-profit nature and member relationships.
• Minutes of the initial meeting that approved the rules and regulations and the Memorandum of Association.
• Passport-sized photographs of all members.

Post Registration Compliance Requirements

After registering a society in India, it is essential to adhere to specific post-registration compliance requirements to maintain legal standing and ensure smooth operations. Here are the post-registration compliance requirements:

• Obtain a PAN Card: Secure a Permanent Account Number (PAN) for the society to facilitate financial transactions and fulfill tax obligations.
• Open a Bank Account: Establish a bank account in the society's name to manage funds transparently and efficiently.
• Maintain Proper Financial Records: Keep detailed records of all financial transactions, which include income, expenditures, and assets. These records should be audited annually by a qualified chartered accountant.
• Conduct Annual General Meetings (AGMs): Hold an AGM each year to discuss the society's activities, review financial statements, and make key decisions. The minutes of the meeting should be documented and preserved.
• File Annual Returns: Submit an annual return to the Registrar of Societies detailing the society's activities, financial statements, and a list of governing body members. This ensures transparency and accountability.
• Comply with Income Tax Regulations: File income tax returns annually. If applicable, apply for exemptions under Sections 12A and 80G of the Income Tax Act to avail of tax benefits.
• Register for GST (If Applicable): If the society's annual turnover exceeds the prescribed limit, which is Rs. 40 lakhs for products and Rs. 20 lakhs for services, register for Goods and Services Tax (GST) and file regular returns.
• Maintain Statutory Registers and Records: Keep updated records of members, minutes of meetings, and other statutory documents as mandated by law.
• Notify Changes to the Registrar: Inform the Registrar of Societies about any changes in the society's name, objectives, registered office address, or governing body members.
• Renew Registration (If Required): Some states mandate periodic renewal of society registration. Ensure timely renewal by submitting the necessary documents and fees to the Registrar.

Registering a trust in India is more than just a legal formality, it is a powerful way to turn shared dreams into real impact. It gives your cause the recognition, support, and structure it needs to grow. From owning a property to receiving donations and government support, society registration opens many doors. Whether you are a group of change makers or passionate individuals, this step gives your efforts a trusted and lasting foundation. Contact Online Legal India to get assistance from professional experts in filing a society registration.