SOCIETY REGISTRATION
In India, societies are formed to promote charitable, literary, scientific, or educational objectives that serve the public interest. To gain legal recognition and operate within a structured framework, such organizations must be registered under the Societies Registration Act, 1860 or under the relevant State Societies Registration Act (as several states have amended or enacted their own versions).
Society registration provides legal status, credibility, and the ability to hold property, enter into contracts, and initiate or defend legal proceedings in the society’s name.
WHAT IS SOCIETY REGISTRATION?
Society registration is the process of legally recognizing an association of individuals who voluntarily come together to pursue a common non-profit purpose. Once registered, the society becomes a separate legal entity, distinct from its members. The Registrar of Societies (appointed by the State Government) is the primary authority responsible for granting registration.
The governing law The Societies Registration Act, 1860 was enacted to improve the legal standing and management of societies established for charitable, literary, scientific, or similar purposes.
PURPOSE OF A SOCIETY
A society can be established for several socially beneficial purposes, such as:
- Promotion of literature, fine arts, science, or useful knowledge
- Establishment and maintenance of libraries, museums, or reading rooms
- Charitable or welfare activities (education, healthcare, relief to the poor, etc.)
- Environmental, cultural, or sports promotion
- Preservation of heritage and historical monuments
These objectives must be clearly stated in the Memorandum of Association (MOA) at the time of registration.
WHO CAN FORM A SOCIETY?
As per Section 1 of the Societies Registration Act, 1860, a society may be formed by seven or more persons.
These individuals can be:
- Indian citizens, and
- In some states, bodies corporate, registered societies, or foreign nationals may also join, depending on local laws.
All founding members must sign the Memorandum of Association and Rules & Regulations before submission.
BENEFITS OF SOCIETY REGISTRATION
Registering a society provides several legal and functional advantages:
- Legal Recognition: Enables the society to function as a separate legal entity capable of owning property and entering into contracts.
- Right to Sue or be Sued: Registered societies can file or defend legal cases in their own name.
- Tax Exemptions: Societies can apply for income tax benefits under Sections 12A and 80G of the Income-tax Act, 1961, encouraging donations and financial support.
- Credibility and Transparency: Registration builds trust among donors, beneficiaries, and government authorities.
- Access to Government Grants: Registered societies can apply for state and central government schemes or funding.
- Perpetual Succession: The society continues to exist despite changes in its membership.
POST-REGISTRATION COMPLIANCE
After registration, societies must adhere to ongoing legal requirements, such as:
- Annual Filing: Submit an annual list of managing committee members to the Registrar (as required under Section 4 of the Act).
- Accounting & Audit: Maintain proper accounts and get them audited annually.
- Meetings: Conduct Annual General Meetings (AGM) and record minutes.
- Tax & Statutory Compliance: Obtain PAN, open a bank account, and ensure compliance with applicable tax laws.
Failure to comply can lead to penalties or even cancellation of registration.
DISSOLUTION OF A SOCIETY
Under Section 13 of the Act, a society may be dissolved by:
- A vote of at least three-fifths of the society’s members, or
- A court order (in certain circumstances).
After dissolution, any remaining assets are transferred to another society with similar objectives they cannot be distributed among members.
