Society Registration in India

Society Registration Act, 1860 governs the procedure of registration and operation of registered society in India.

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Overview on Society Registration

Purpose of Society Registration

Society Registration Process

Documents Required for Society Registration

Overview of Private Limited Company Registration

A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

While, minimum 2 shareholders are required to start a private company, while the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

  • A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business.
  • Help owners from personal liability and protects from other risks and losses.
  • Draws more customers
  • Ease in obtaining bank credits
  • Offers limited liability to preserve your company’s assets
  • Greater funds supplement and more attractive stability
  • Enhance the potential to grow big and expand

Starting a private limited company offers many advantages. Some of them are as follows:

Limited Liability
The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.
Separate Legal entity
A private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.
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Society Registration in India

The Certification of society should be in effect under the Societies Registration Act. Once the persons intending to form a society have settled upon the name of the society and have planned a draft of the memorandum and rules and regulations the society the following methods would have to be selected for getting the society manifested:

Manifestation of Memorandum of Association

MOA, i.e. Memorandum of Association, is a document representing and describing the purpose of its continuation and operation. It defines the authorised range of force and performance. Supervision is very much essential to draft this document which will mainly be required for total attainment of the objects. All subscribers should sign each page of the memorandum, and the signature should get testified by an Oath Commissioner, Notary Public, Gazetted Officer, Advocate, Chartered Accountant, Magistrate First Class with their rubber/official stamp and complete address.

Format & Guidelines for Drafting Memorandum of Association

Designation of Society

  • The Registrar of Society may be approximated with alternative names to determine whether the same is not defective and not being used by other existing societies,
  • It should not imply obscenity or the virtue and honour
  • It should be not likely to raise disharmony or feelings of hostility or hatred among community or associations.
  • It should not match with the name of surviving enrolled society
  • It may achieve with the expression 'trust.'
  • The title should be such that it does not draw the prerequisites of images and names 'Prevention of improper use' Act, 1950.
  • It should not suggest or calculated to mean the patronage of the Government of India or intermediary with the local authority or any corporation or body appointed by the government following any law for the time standing in force.
  • The Registrar has the capability or power to refuse registration if the name is inconsistent with these guidelines.

Registered Office of the Society

The principal Act does not require the designation of the address of the certified office in the Memorandum of Association of the society; it is always more salutary to mention the location of the registered office in the Memorandum so that correspondence or notices may be commuted to the society.

Aspirations of the Society

The society once formed has to act within the structure of the 'object clause'. Any unfolding of the society outside the meaning of the object clause may get declared as beyond the authorized scope of the society besides being NULL & VOID. Nevertheless, it is desirable to draft the object clause with full attention and care.

Name & Address of Governors, Councils, Directors of Committee

The Act requires that the Memorandum should include the names, addresses and profession of the above captioned. Whether a member is termed a governor or director or president, it does not affect his status. These office bearers have a separate existence from individual members. The board and management of society are interested in them jointly.

Rules & Regulations of the Society

The standards help the authority in carrying out the objects of the society. They are obligatory on the members of society. The rules should get approved by at least three members of the regulatory body.

Accounts & Audit

The societies own funds and properties provided to them by the members or by other persons (by way of donation, etc.). The funds and resources are involved in the attainment of objects for which the society gets formed. The members of the regulatory body are the governors who apply the funds. It graces certainty that the societies keep proper account books and get them audited and exhibit them to the members at the general meeting and file them with the Registrar for analysis. Every society should get its statements audited once a year by a duly equipped auditor and have balance sheet developed by him. The auditor should present the report showing the exact date of commercial activities of the society.

FAQs

As per section 14 of the Society registration act, 1860 members are not entitled to receive profits.
For Society registration, the establishing members must agree with the name of society first and then prepare the Memorandum, followed by Rules & Regulations of the society.
You can check Society Registration status on the official website of Municipal of Corporate Affairs.
An educational institution can be registered under the Societies Registration Act, 1860. A society may be formed by an association of 7 or more persons as defined in section 20 of the Act.
Members of the same family cannot be member of society.

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