What is Society Registration?
A society is an association of people with a common purpose, such as promoting literature, science, fine arts, or charity. Society Registration is the legal process of formally establishing this association under Indian law, granting it a distinct legal identity.
Society Registration is possible with at least seven members having a similar goal. It helps with maintaining all the financial records and legal proceedings under the society's name.
Types of Society Registration in India
The Societies Registration Act, 1860, allows for the formation of various non-profit organizations, including:
- Charitable Societies: Dedicated to helping the poor, public welfare, and community improvement.
- Educational Societies: Focused on promoting education, setting up schools or colleges, and offering vocational training.
- Scientific Societies: Aimed at encouraging scientific research, innovation, and sharing scientific knowledge.
- Literary Societies: Established for promoting literature, arts, and cultural activities.
- Sports Societies: For encouraging and developing sports.
- Housing Societies: Formed for the cooperative management and upkeep of residential buildings.
Benefits of Society Registration
- Legal Recognition: Establishes legal identity separate from members' personal affairs.
- Asset Protection: Safeguards society property from unauthorized claims and provides limited liability.
- Credibility: Builds trust with donors, beneficiaries, and government agencies.
- Tax Benefits: Eligible for exemptions under Sections 12A and 80G of the Income Tax Act.
- Operational Benefits: Can open bank accounts, acquire property, and enter contracts in its name.
- Grant Funding: Access to domestic and international grant funding.
- Partnerships: Easier collaboration with government bodies, NGOs, and corporate CSR initiatives.
Eligibility Requirements
- Minimum of 7 members required to form a society
- Members can be individuals, companies, or firms
- Must share a common purpose for literary, scientific, or charitable aims
- Society's objective must be legal and ethical
- Detailed Memorandum of Association (MOA) is mandatory
- Must draft Rules and Regulations for the society
- MOA must be signed by minimum 7 members
Documents Required
- Memorandum of Association (MOA) signed by all founding members
- Rules and Regulations of the Society
- Identity Proof of all members (Aadhaar, PAN, Voter ID, Passport, or Driving License)
- Address Proof of all members (utility bill, Aadhaar, or bank statement)
- Passport-size photographs of all members
- Address Proof of registered office (title deed, rent agreement, or NOC from landlord)
- Affidavit from President/Secretary
- Covering letter to Registrar of Societies
- Minutes of the first meeting
- Consent letters from governing body members
Registration Process
- Draft MOA: Prepare Memorandum of Association with society name, objectives, and member details.
- Draft Rules & Regulations: Detail internal management, membership criteria, meeting procedures, and financial management.
- Prepare Documents: Gather identity and address proofs for members and registered office.
- Signatures & Witnessing: MOA and Rules must be signed by 7+ members and verified by Notary Public.
- Submit Application: File with Registrar of Societies (offline or online via state portal).
- Pay Fees: Pay required registration fees as per state government.
- Verification: Registrar reviews documents for compliance.
- Certificate Issuance: Registrar issues Society Registration Certificate upon approval.
Fees & Penalties
Registration Costs:
- Registration Fees: ₹500 to ₹5,000 (varies by state)
- Stamp Duty: ₹1,000 to ₹10,000 (varies by state)
- Professional Fees: ₹5,000 to ₹15,000
Penalties for Non-Compliance:
- Failure to file annual returns: ₹1,000 to ₹10,000 fine
- Daily fine: ₹50 to ₹200 until compliance
- Misuse of funds: Imprisonment up to 6 months or fine up to ₹5,000, or both
- Registration cancellation for repeated violations
Post-Registration Compliance
- PAN Card: Apply for PAN in society's name
- Bank Account: Open dedicated bank account
- Accounting: Maintain double-entry accounting records
- Annual Returns: File with Registrar of Societies
- Income Tax Return: File ITR annually
- AGM: Conduct Annual General Meetings regularly
- Auditing: Annual audit by qualified professional
- Updates: Inform Registrar of any changes in governing body or objectives
- Renewal: Renew registration every 5 years