Society Registration
Society registration is a suitable business structure for traders & merchants. A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common goal to serve society.
Society Registration
A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common goal to serve society.
A society gets registered under The Societies Registration Act, 1860 to become a legal business entity.
A society must exist for the purpose of charitable activities such as education, poverty relief, arts, religion, cultures, music, sports etc.
The Governing body members are entrusted with the management of the affairs of the society. Whereas, the General Body member’s responsibilities include the election of governing body members, alteration of procedures, rules and regulations, name and objects, if necessary. A foreigner residence can also become the member of society in India.
A Society can be formed with an objective to promotion literature, fine arts or science or the distribution of valuable knowledge or political education or for charitable purposes.
As per Section 20 of the Societies Act, 1860, a Society can be registered for the following purposes:
Charitable assistance
Formation of Military Orphan funds
Promotion of Science, Literature& Fine Art
Distribution of useful Knowledge &Political Education
Building or maintenance of libraries, reading rooms, Public Museum or Galleries.
Social Welfare & Social Development
Other purposes based on the amendment that has been enacted to the Societies Act, 1860 by the concerned State Government.
Decision: – Is Society registration right fit for you to start your non-profit operations.
Management: – A society becomes a separate legal entity once incorporated.It acts as a separate entity even if its membership changes.
Purchase Property: – An incorporated society has the right to lease, rent, buy and sell property. It also borrows money and enter contract in its own name.
Personal Liabilities: – Members are not personally liable for the debts, unless debts are incurred from activities undertaken to obtain money for pecuniary gain or debts incurred through unlawful activities.
Next step is to understand various other implications.
Benefits:-
Society registration is exempted from income tax
Liabilities are limited in society registration
Society registration is easily inheritable
Assets are secured in society registration
Liabilities: –
Minimum 7 Members required
The objective shall be scientific, literary & for charitable purpose only
There is no system of equity investment or ownership, thereby, societies become less attractive to commercial investors interested in microfinance.
Borrowing Capital: –
It’s bit hard for society registration to get investment.
Taxes: –
Society registration is exempted from income tax
If Society registration benefits & Liabilities satisfy your NGO needs, then Society registration might best suit your social needs.
Corpseed Three Easy Steps to Apply for Society Registration
1. Fill out basic requirement form
2. We’ll collect all your documents and file them directly with the authority
3. You’ll receive your completed Society registration package by an E-mail
Documents Required for Registration of a society
Affidavit No. 1 regarding ownership and NOC for registered office of the society
Affidavit No. 2 regarding persons not related to each other and name of the society
ID Proofs of all the members
Address Proof of all the members
Electricity/ Water bill (Business Place)
Copy of Property papers (If owned property)
Landlord NOC (Format will be provided)
Latest Notification
“Pursuant to Section 135 of the Companies Act, 2013 and Rule 4(1) and (2) of Companies (CSR Policy) Rules, 2014 states the any charitable institution either Society, Trust or Section 8 Company duly registered under an Act of Parliament or State Legislature with recognition of Income Tax Department or else, need to get listed or registered in Ministry of Corporate Affairs duly filing form called CSR-1 with effect from 1st April, 2021. Further the form is applicable to existing entity as well as new entity formed thereafter the applicable date. The required form to be filed by such entity is already published and put on website for the use of stakeholders. It is 3 page form simply asking for entity form, registration details and address with valid certificate of registration and PAN Card copy of entity in addition to details of Trustee/Chairman/Director details on issued Form. Upon filing of Form, entity will received Unique Code and it establish the legal identity as well as give opportunity to such entity to serve in mega CSR Project of various entity in India to which Section 135 is applicable.
This is precisely record taking of all NGO in India doing charitable activities either under Corporate Social Responsibility or else to track the CSR expenditure and make transparent procedure for organization which want to do CSR activity from registered entity in Ministry of Corporate Affairs.
Therefore it is mandated by Government of India to get such entity registered with Ministry of Corporate Affairs.
Further it is again redeliberated to such NGO organization to get registered with Darpan Portal for better appearance and transparency.”
Over and above with the amendment introduced by the Finance Act, 2021 with effect from 1st April, 2021 the long-awaited renewal proposal for 12A/80G already registered entity with Income Tax Department has to renew its registration again by 30th June, 2021 is been finally implemented. The amended provision of Governing Act, Income Tax Act, 1961 is now fully enforceable regarding this provision and upon failure to fulfill the renewal requirements, the existing registration of 12A/80G stands withdrawn. Department is working on form and its execution mode.