Credit Co-operative Society

How to Obtain Credit Cooperative Society Registration?

Credit Cooperative Society Registration

Credit cooperative society is a type of cooperative funding society that provides financial funding and aid to its members. In India, credit cooperative societies are registered and regulated by the Registrar of Cooperative Societies in accordance with the provisions laid down in the Multi-State Cooperative Societies Act. This article thoroughly discusses how to obtain Credit cooperative society registration in detail and the procedure related to it.

What is a Credit Cooperative Society?

The primary or main objective of a credit cooperative society is to provide financial aid to its members in case of an emergency. This financial aid or assistance can be in the form of loans and advances at reasonable rates of interest. Members of a credit cooperative society often pool or accumulate their financial resources together to provide support and assistance to each other. It is usually formed by a group of individuals sharing the same beliefs or interests, such as having the same residence, or area of interest or sharing a common bond of interest.

In India, credit cooperative societies are managed by the Registrar of Cooperative Societies in accordance with the provisions laid down in the Multi-State Cooperative Societies Act, of 2002. This act laid down provisions regarding registration, regulation and supervision of these credit cooperative societies that are engaged in the production, processing, marketing and selling of goods in providing services or engaging in any other similar activity.

In order to get registered, the cooperative society must choose a unique name that is not in existence now and should have minimum members of 10 people become eligible for registration. The credit cooperative society, after registration, becomes eligible to provide financial assistance to its members, and the draft bye-laws of the credit cooperative society must comply with the provisions mentioned in the Multi-State Cooperative Societies Act, 2002.

Benefits

There are several benefits of credit cooperative society registration. These benefits are given below:-

  • Registration gives these cooperative societies proof of legality which helps them in carrying out their business smoothly and also makes them eligible to avail credit facilities from various financial institutions and cooperative banks.
  • The registration of credit cooperative societies helps in the convenient and better governance of the society and also helps in the preparation of the bye-laws and regulations of the societies, which further protects the interest of the members of the society.
  • Credit Cooperative Society Registration gives it access to several government schemes and to technical and professional support, which helps in improving its business and technical operations and serves its members in a more effective and convenient manner.
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Eligibility

In India, credit cooperative society registration is decided by the relevant state cooperative societies act or the Multi-State Cooperative Societies Act, 2002. Given below are the eligibility criteria that are required for the credit cooperative society registration.

  • The minimum number of members for the credit society registration must be 10, and the majority of its members must reside in the same society within the jurisdiction of the Registrar of Cooperative Societies, having the same area of interest, common bond etc.
  • The objectives and goals of a credit cooperative society must be at par and in accordance with the provisions of the relevant acts. It should be aimed at promoting the general and economic interests of its members.
  • The credit cooperative society must have a registered office within the jurisdiction of the Registrar of the Cooperative societies where the proposed society is registered.
  • The credit cooperative society bylaws must be in accordance with the provisions laid down in the relevant acts, and the credit cooperative society must be governed and managed in a democratic manner.

Documents Required

Given below is the list of documents that are required for the credit cooperative society registration:-

  • An application must be filled for the registration in a prescribed form with the Registrar of Cooperative Societies, and the MoA of the society must be submitted, which lays down all the necessary detailed related to the society. Apart from these documents, the bye-laws and rules and regulations of the society lay down the structure and governance manner as how the affairs of the society must be submitted.
  • Important details of the members of the society, such as their personal details, including names and addresses, must be submitted for the credit cooperative society registration. Other necessary documents needed for the registration include resolution of members, PAN card (Permanent Account Number) details, and TAN (Tax Deduction and Collection Account Number) must be submitted.
  • Director Identification Number (DIN), Digital Signature Certificate (DSC), evidence and documents related to the proposed registered office of the society, such as a rent agreement or a utility bill, must be submitted along with the audited balance sheet & profit and loss statement.
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Procedure

Generally, the credit cooperative society is registered under the provisions enshrined in the Multi-State Cooperative Societies Act, 2002[1] or under the state-specific cooperative societies acts. Before going for registration of credit cooperative societies, it is highly advisory or recommendatory to seek the assistance of a professional or an expert in cooperative law. After the registration process, the credit cooperative societies are subjected to regular audits and inspections by the Registrar of Cooperative Societies. It is usually done to ensure that the credit cooperative societies are working effectively and are complying with all the provisions of the relevant act and according to the bylaws of the society.

Credit cooperative society registration in India is not a complicated task. Given below is the detailed procedure for cooperative society registration:-

  • Before going for the credit cooperative society registration, it is essential to prepare for the society’s by-laws and MoA. These two are essential documents that must be needed for the registration process. The MoA and by-laws must be in accordance with the provisions of the relevant state cooperative societies act or the multi-state cooperative societies act 2002.
  • After this step, the DSC (Digital Signature Certificate) and DIN (Digital Identification Numbers) signatures of the proposed society’s directors are required to move further with the credit cooperative society registration. These signatures should be according to the provisions of the Information Technology Act, of 2000.
  • After performing the above-mentioned steps, the next step is filing the application for credit cooperative society registration. This application must be submitted to the registrar falling within the proposed society’s jurisdiction along with the necessary documents.
  • After the submission, the registrar will scrutinise the application and will check if the documents are in accordance with the provisions mentioned in the act and are according to the bye-laws of the society.
  • After verification, the registrar will issue a certificate of registration, and after the registration, the society is eligible to commence its business now. The certificate of registration serves as proof of the legality of the credit-cooperative society.
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However, it is important to keep in mind that the laws and provisions for registration vary according to the relevant state cooperative societies act, 2002. It is advised to seek assistance from an expert who holds expertise in this field before going for registration.

Conclusion

Credit Cooperative Society registration is done according to the provisions mentioned under the relevant state-cooperative law. Registration of a credit cooperative society provides a number of benefits which further helps in smooth and hassle-free functioning as well as also helps in protecting the interests of its members.

Also Read: Multi State Credit Cooperative Society Registration

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