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A person or entity has the vision to work for not for profit generally prefers to register as Society under the act, the main motive of society registration to serve the community at large without any profit motive. In this article, we will discuss Procedure for Society Registration in India.
A society is an entity encompassing of a group of persons that usually unite for a common purpose. Societies are commonly formed for promoting charitable reasons, for instance, education, art & culture without any financial gain (it is one of the 3 types of NGOs in India).The registration of a society in India is administered by the Society Registration Act, 1860. The Act aims at legalizing the activities of such organizations or corporates as well as of bringing consistency to the way in which they are governed. The Act has been accepted by all Indian states, many of which have made amended the original Act.
A society may be registered by 7 or more than 7 persons for the subsequent reasons:
Promotion of Science.
Promotion of Literature.
Promotion of Fine Arts.
Diffusion of Useful Knowledge.
Grant of Charitable Assistance.
Creation of Military Orphan Funds.
Foundation or Maintenance of Libraries or Reading Rooms.
Foundation or Maintenance of Public Museum or Galleries.etc
Every Indian state has accepted the Act and made an amendment if any. Therefore, the rules and regulations made there under may marginally vary from one state to another. Society registrations are approved by state governments through registrations overseen by Registrar of Societies of every state.
The registration of the society is done in two parts:
a. Memorandum of Association
b. Rules and regulations of the society
Memorandum of Association
The MOA comprises of numerous clauses like the name of society, the address of registered office, an object for the formation of society and the details of the general body.
The rules & regulations again should report the following questions:
The rules and regulations, when formulated, need to be signed and certified by 3 office bearers of society (usually Chairman, President, and Vice-president or secretary and the president, if any applicable).
Both these documents must be signed by each of the founding members, witnessed by notary public or chartered accountant (CA) with their official stamp & address.
Before applying for NGO registration, one needs to ensure the clauses mentioned in both MoA and the rules are discussed and approved by the members. The ‘Object clause’ in MOA should clearly state the purpose of creation of the society. This clause may be important for inclusion of the society under the said Act.
Therefore, hiring a skilled person to work through clauses on both MOA & rules and regulations may make sure you have what the registrar is looking for approval of societies.
Once a person poses all the required documents, one can register the society under the Societies Registration Act, 1860. Though, make sure that the person has all necessary documents ready in hand (other than MOA & rules made) to secure processing.
All the documents required as above are to be filed with the Registrar along with the prescribed fees, and a suitable name (which would be exclusive & not suggest a relationship with the government or violate the provisions of Emblem and Names Act, 1950). If the Registrar has contended that documents summited are fair and complete in all terms with the application, the society will be registered.
Note: The registrar may also ask for documents if he thinks fit for further scrutinizing and satisfying himself the fairness of documents submitted and they are complete in all terms and aspects.