Society Registration Online in India

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 activities like 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.

Legal Framework and Authorities Governing Society Registration

To register your society, you need to understand the laws that govern its formation and operation. These laws and authorities ensure your society gains legal standing and can access benefits.

Society Registration in India is mainly governed by:

• The Societies Registration Act 1860: This central law provides the basic legal framework for registering literary, scientific, and charitable societies across India. Many states have adopted or changed this law to fit their specific needs.
• State-specific Societies Registration Acts: Several states have passed their laws or made changes to the 1860 Act, which might include specific rules for certain types of societies (e.g., Maharashtra Co-operative Societies Act, 1960).
• Registrar of Societies: This is the main authority responsible for registering the Memorandum of Association and Rules & Regulations of a society, confirming its legal existence. This office usually falls under the respective State Government's authority.
• NITI Aayog: Societies need to register on NGO Darpan online to seek government grants and foreign contributions approved under the Foreign Contribution Regulation Act (FCRA).

Here are five key characteristics of a society according to the Societies Registration Act, 1860:

• Charitable Goals: It must be formed for a non-commercial purpose, like promoting science, art, education, or charity.
• Seven-Member Minimum: At least 7 people are needed to sign the founding documents to form the society.
• Founding Document: It is defined by a formal document (Memorandum) that lists its name, goals, and leaders.
• Official Registration: To be legal, it must be registered with the state's Registrar by submitting its documents and rules.
• Has Its Own Rules: The society must have rules for its internal management, covering member admissions, meetings, and duties.

Getting your society registered offers many benefits:

Legal Recognition and Protection

• Establishes Legal Identity: Your society gets its own official legal identity. This means it can act as a single body, and its affairs are separate from the personal affairs of its members.
• Protects Assets: Registration safeguards society property from unauthorized claims and disputes, and provides limited liability to its members.

Greater Transparency and Credibility

• Builds Trust: Being a registered organization is key to building trust. It shows the stakeholders, including donors, beneficiaries, government agencies, and corporate partners, that the society is committed to transparency and accountability.
• Increases Public Confidence: Official recognition strengthens your reputation among beneficiaries, partners, and the general public.

Financial Gains

• Access Tax Benefits: Registered societies can apply for specific tax exemptions under relevant sections of the Income Tax Act (e.g., 12A and 80G).
• Attracts More Donations: Formal status encourages donors who prefer contributing to recognized and compliant organizations.

Operational Benefits

• Open Bank Accounts: A registered society can open and operate bank accounts in its name.
• Acquire Property and Enter Contracts: The society can legally buy, own, and transfer assets in its name, as well as enter into legal contracts and agreements.

Opportunities for Growth

• Secure Grant Funding: Registration is often a mandatory requirement for securing both domestic and international grant funding.
• Form Partnerships: Registration makes it easier to collaborate with government bodies, other NGOs, and corporate entities for CSR (Corporate Social Responsibility) registered initiatives.

Disadvantages of Society Registration

While there are many Society Registration benefits, there can be some disadvantages or challenges with Society Registration:

• Compliance Requirements: Registered societies must meet various annual compliance requirements, including financial audits, annual reports, and regular meetings, which can take time and often need professional help.
• Regulatory Oversight: Being a registered entity means more scrutiny from regulatory bodies like the Registrar of Societies and the Income Tax Department.
• Limited Flexibility: The Memorandum of Association and Rules & Regulations are legally binding, and any major changes often require formal amendments and re-registration, which can be a lengthy process.
• Public Accountability: As a public entity, a registered society is expected to maintain transparency, and its financial & operational details may be publicly accessible.
• Complex Dissolution: The process of dissolving a registered society is formal and regulated, requiring specific procedures to be followed, which can be complex.

You need to fulfil these essential requirements for Society Registration:

• The minimum number of members required to form a society is seven.
• A company or firm, or an individual, can be a member of a society.
• Members must share a common purpose for a literary, scientific, or charitable aim.
• The society's objective must always be legal and ethical.
• A detailed Memorandum of Association (MOA) is mandatory.
• You must draft a set of Rules and Regulations for society.
• The MOA needs to be signed by a minimum of seven members.

Here's a list of documents you need for Society Registration:

• Memorandum of Association (MOA): Duly signed by all founding members.
• Rules and Regulations of the Society: Also signed by the founding members, outlining how the society will operate.
• Identity Proof of All Members: Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License.
• Address Proof of All Members: Recent utility bill, Aadhaar Card, or bank statement.
• Passport-size photographs of All Members
• Address Proof of the Registered Office of the Society: Property title deed, rent agreement, or No Objection Certificate (NOC) from the landlord (if applicable).
• Affidavit: An affidavit from the President/Secretary of the proposed society stating their willingness and ability to hold the position.
• Covering Letter: An application letter addressed to the Registrar of Societies for registration.
• Minutes of the First Meeting: Detailing the decision to form the society and appoint its governing body.
• Consent Letters: From the members of the governing body.

Here's a general guide on how to form and register a society in India:

1. Draft the Memorandum of Association (MOA): This document is crucial. It must clearly state:

• The name of the society.
• The objectives and goals of the society.
• The names, addresses, and occupations of the governing body members.
• The names, addresses, and occupations of the seven or more founding members.

2. Draft the Rules and Regulations: This document details the internal management of the society, including:

• Criteria and procedures for membership.
• Rules for meetings (both Annual General Meeting, Extraordinary General Meeting), attendance requirements, and voting.
• Powers and duties of the governing body and office bearers.
• Financial management, accounting, and audit procedures.
• Provisions for changing rules and dissolving the society.

3. Prepare Supporting Documents: Gather all necessary identity and address proofs for the founding members and the registered office address proof.

4. Signatures and Witnessing: The MOA and Rules & Regulations must be signed by at least seven founding members and officially verified by a Notary Public or an Oath Commissioner. It is recommended to have at least two witnesses also sign these documents.

5. Submission to the Registrar of Societies (Offline mode): The application form for Society Registration is submitted to the Registrar of Societies in the area where the society's registered office will be located.

• Online Society Registration Process: You must use the official online portal of the state where your society will be located.
  • The procedure involves first creating a secure account on the state's website using your name and mobile number.
  • After logging in, fill out the Society Registration form with details such as the proposed society's name, its objectives, information about governing body members, and registered office address.

6. Payment of Registration Fees: Pay the required registration fees as set by the respective state government.

7. Verification and Scrutiny: The Registrar's office will review the submitted documents to ensure they comply with the Societies Registration Act and other relevant laws. They may ask for more information or clarification.

8. Issuance of Registration Certificate: Once satisfied, the Registrar will issue the Society Registration Certificate, formally recognizing the society as a legal entity.

Registered societies can face disciplinary actions if they violate the Societies Registration Act or the Rules & Regulations. These can include:

• Penalties and Fines: For not meeting filing requirements (e.g., annual reports) or other administrative violations.
• Temporary Suspension: The Registrar may temporarily stop the society's operations in case of serious violations.
• Cancellation of Registration: For repeated non-compliance, fraudulent activities, or operating against its stated objectives, the Registrar can start the process to cancel the society's registration.
• Legal Proceedings: In cases of financial misuse or criminal activities, the governing body members may face personal responsibility and legal prosecution.
• Loss of Tax Benefits: Not following Income Tax Act provisions (e.g., not filing ITR, misuse of funds) can lead to the cancellation of 12A and 80G registrations.

Includes fees, fines, stamp duties, and legal sections related to registration and compliance.

Society Registration Costs

• Registration Fees: They can range from Rs. 500 to Rs. 5,000 depending on the state.
• Stamp Duty: Usually between Rs. 1,000 and Rs. 10,000, varying by state and document type.
• Professional Fees: Legal or consultancy fees generally range from Rs. 5,000 to Rs. 15,000, depending on complexity.

Connect with RegisterKaro for clear and transparent pricing for registration and other compliance.

Penalties and Punishments for Non-Compliance

• Failure to Register: Under Section 4 of the Societies Registration Act, a society not registered cannot hold property or sue/be sued in its name. While no direct fine applies here, the lack of legal status severely limits operations.
• Failure to File Annual Returns and Accounts: Most state acts mandate annual filings. Delay or non-filing can lead to fines ranging from Rs. 1,000 to Rs. 10,000 (varies by state). Some states impose a daily fine of Rs. 50 to Rs. 200 until compliance.
• Misuse of Society Funds or Fraud: Under Section 13 of the Act, misuse of funds or violation of objectives can lead to society cancellation and criminal prosecution of office bearers, punishable with imprisonment up to 6 months or a fine up to Rs. 5,000, or both.
• Registration Cancellation: If a registered society fails to meet ongoing requirements or misuses its funds, its registration can be canceled by the Registrar.

A registered society can be dissolved according to Section 13 of the Societies Registration Act 1860. Here's how the process usually unfolds:

• Member Resolution: At least three-fifths of members present at a general meeting must approve the dissolution.
• Settling Affairs: All the society's debts and obligations must be fully paid off. Any assets owned by the society are then sold according to its established rules or as decided by its governing body.
• Government Approval: If the government is involved, as a member, contributor, or interested party, their permission might be necessary before proceeding with the dissolution.
• Disposal of Remaining Assets: After all debts are cleared, any remaining assets cannot be distributed among the members. Instead, they must be transferred to another registered society with similar objectives or to the government, as stipulated by the rules.
• Report to Registrar: A report detailing the dissolution and the disposal of assets must be submitted to the Registrar of Societies to make it official.

It is important to know the requirements and legal grounds for renewing or canceling a society's registration.

Renewal of Society Registration

Society Registrations are valid for 5 years and need regular renewal. The renewal process typically involves:

• Submitting a renewal application to the Registrar of Societies.
• Providing updated documents such as the original registration certificate, annual audit reports, updated list of governing body members, and minutes of Annual General Meetings.
• Paying the required renewal fees.

It is essential to renew registration on time to avoid penalties and maintain legal recognition.

Society Registration Cancellation

The Registrar of Societies can cancel a society's registration for various reasons, including:

• Failing to file annual reports or other required documents.
• Operating against the stated objectives in the MOA.
• Engaging in illegal activities.
• Financial mismanagement or misuse of funds.
• Registration obtained through false information or fraud.
• Becoming bankrupt or ceasing to operate.

Following these essential requirements keeps your society legally valid and operational.

Initial Steps After Registration

• Use funds only for the purposes stated in the society's foundational documents.
• Apply for a PAN card in the society's name to open a dedicated bank account and manage the financial transactions of the society.
• Set up double-entry accounting to record all money received and paid out.
• Pro Tip: If your annual income exceeds a certain amount (e.g., Rs. 10 lakh in some cases), consider an audit under the Income-Tax Act's Section 44AB if applicable.

Ongoing Compliance Responsibilities

• File Annual Returns: Submit the annual report to the Registrar of Societies, providing details of the governing body and activities.
• File ITR: File the Income Tax Return (ITR) annually, even if claiming tax exemptions (under Section 12A/80G).
• Conduct Annual General Meetings (AGMs): Hold regular meetings of members and the governing body, and keep accurate records of all decisions.
• Maintain Books of Accounts: Keep proper and up-to-date financial records.
• Auditing: Have financial statements audited annually by a qualified professional, such as a Chartered Accountant or a legal services firm like RegisterKaro, especially if registered under 12A/80G.
• Update Records: Promptly inform the Registrar of Societies about any changes in the governing body, registered office, or objectives.
• NGO-Darpan and FCRA Compliance: If applicable, update details on NGO Darpan and comply with the Foreign Contribution (Regulation) Act (FCRA) requirements for foreign donations.
• GST Compliance (If applicable): If the society undertakes any activities that require GST, it must comply with GST rules.

The Society Registration Certificate is the official document issued by the Registrar of Societies upon registration. To obtain this certificate, you must first draft a Memorandum of Association (MOA) and Rules & Regulations, select at least seven founding members, and submit the required documents to the Registrar of Societies.

This certificate is crucial for managing all legal and financial activities of the society. With certification, you can open a bank account in the society's name and acquire property. Additionally, it is essential for applying for a PAN card, seeking tax exemptions, and legally accepting donations and grants.