Society Registration Services
Looking to create positive change? Check out the guide below to learn about Society Registration, and know how we can assist you in making it happen.
A society is formed with a noble intention of shaping shared dreams, where several people come together to act cooperatively for one common purpose.
If you are looking to start something for social welfare or want to promote educational initiatives, then forming a group as a registered society could open doors to greater impact. In India alone, over 3.3 million NGOs operate, indicating the power of people coming together to form a society, changing lives and uplifting communities across the nation.
Society registration process is governed by The Society Registration Act in India, and this act provides a clear legal framework for various operations. This act was formulated in 1860 to ensure transparency and accountability, promoting trust and credibility among its members and the public.
By registering your entity as a society, you get a lot of benefits, like limited liability, the capacity to own properties, and even the right to enter into contracts. So registration is an important step to forming a society that keeps the society's future secure and helps to maximise its impact on the public.
Advantages of registering your society
Registering a society brings in a lot of advantages. Here is a breakdown:
Gain credibility and trust
Once your society is registered, it gains credibility with the public and potential donors.
Perpetual succession
Registration gives your society the status of a separate legal entity, where each member is distinct from others.
Gets protection from liabilities
Members of a registered society get a limited liability feature, where their personal assets are shielded from the society's debts or legal obligations.
Provides tax benefits
Societies can claim tax benefits under sections 12A and 80G of the Income Tax Act and this can significantly reduce your overall tax burden.
Our Services:
At Benchmark, we profile you with an end-to-end society registration service, that helps you to register your business as a society without worrying about anything. We ensure that your business is legally compliant with all aspects of society.
Our service offerings for society registration include:
- We help you with the preparation of the Memorandum of Association and Rules and Regulations following the Societies Registration Act, 1860.
- Provides you with assistance in choosing a unique and compliant name for the society to avoid conflicts with existing registrations.
- Comprehensive support for document preparation, including identity proof, address proof, and proof of registered office.
- Helps you with the filing of applications with the Registrar of Joint Stock Companies.
- We act as an advisory on securing additional registrations, such as 12A for income tax exemption, 80G for donor tax benefits, and FCRA for foreign contributions.
- We help you to get the Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Numbers (TAN) for your society.
- We provide you with the assistance to draft bylaws that cover membership criteria, meeting procedures, financial management, and dispute resolution.
- Advisory on post-registration compliance, including annual filings and amendments to governing documents.
Types of Societies
| Society Type | What is it for? | Legal Side |
|---|---|---|
Charitable Society |
Suitable for helping the poor, educating kids, or protecting the environment. | Registered under the Societies Registration Act, 1860. Often gets tax breaks because of its charitable purpose. |
Co-operative Society |
A society that is built for shared economic goals, like affordable housing or better prices for farmers. | The rules vary by state, each has its own Co-operative Societies Act. It is all about members working together for mutual benefit. |
Society with Limited Liability |
A mix of a society and a company. It is for those who want to do good but also want some legal protection for their personal assets. | Falls under the Companies Act, 2013. It is a newer option, offering a balance between social purpose and limited liability. |
Trust |
Managing assets for a specific purpose, usually charitable or religious. Think scholarships or maintaining a temple. | Governed by the Indian Trusts Act, 1882. It is about trustees carefully managing resources for the benefit of others. |
Purpose of Society Registration
The sole purpose of registering a society is determined by the group of individuals coming together to make a difference.
Bringing shared passion to achieve common goals in a structured entity (society) can create many positive changes in our society. Whether it is preserving our culture and heritage, fighting for social justice, providing educational support, or promoting charity, literature, fine arts, or sports, people can come together to form a registered society. This will give them the opportunity to gather their resources and solve social issues to bring positive changes in our society.
It is about creating an opportunity for the betterment of our society.
What can Benchmark do for you?
Our team here at Benchmark understands the society registration process and can guide you through each step of the registration process. We help you in simplifying the process, ensuring that your society formation follows all legal requirements, from drafting the Memorandum of Association (MoA) to obtaining necessary approvals. We will be by your side throughout the registration process.
Registration process
The society registration process involves various steps that require expert guidance. Here is a small breakdown of the steps involved in a society registration process.
Step 1: Gather the founding members
To register a society you'll need at least seven like-minded individuals who share your society's vision.
Step 2: Create the Memorandum of Association
This foundational document outlines your society's name, purpose, and the details of its governing body.
Step 3: Prepare the rules and regulations
Prepare the bylaws that will govern your society's internal operations and decision-making processes. Rules and Regulations covering:
- Membership criteria and fees
- Roles and responsibilities of office bearers
- Procedure for conducting meetings (including quorum requirements)
- Financial management practices
- Audit procedures
- Amendment process for rules
- Dissolution clause
Step 4: File the document
Submit your Memorandum of Association (MoA), certified rules and regulations, and the required registration fee to the Registrar of Joint-Stock Companies.
Step 5: Wait for approvals
The Registrar will review your application and, if everything is in order, issue a certificate of registration.
Step 6: On-going compliance
Once you receive the Certificate of Registration then you can move ahead with getting the following items:
- Apply for Permanent Account Number (PAN) for the society
- Obtain Tax Deduction and Collection Account Number (TAN) if required
- Open a bank account in the society's name
Step 7: Additional registrations (as applicable)
Here is a list of a few additional registrations you can do as part of your society registration.
- Apply for 12A Registration for income tax exemption
- Obtain an 80G Certificate to allow tax-deductible donations
- FCRA Registration if planning to receive foreign contributions
Documents required for society registration
The path to registering your society starts with setting the right documents. And it is so important to have everything in order to ensure a fast and efficient process. Here's a breakdown of the essentials:
For each member of the society:
- Proof of identity
- PAN card
- Aadhaar card
- Passport
- Voter ID
- Driving licence
- Proof of address
- Documents like bank statements, utility bills, or Aadhaar cards can serve as address proof.
For the society itself
- Memorandum of Association: The cornerstone document outlining your society's name, objectives, and governing body details.
- Rules and Regulations: The internal rulebook that will guide your society's operations and decision-making.
- Covering Letter and Declaration: A formal letter signed by all founding members, explaining the society's purpose, along with the declaration from the president.
- Proof of Registered Office Address: If you have a physical office, you'll need to provide proof of its address.
- Rental agreement
- Property ownership documents
- Note: If you're renting, you might also need a No Objection Certificate (NOC) from your landlord.
Additional documents for specific registrations
- Form 10A (for 12A Registration): This is required to apply for income tax exemption under section 12A
- Form 10G (for 80G Certificate): This is required for the donors to claim tax deductions on their donations to society
- FC-1 Form (for FCRA Registration): Required if the society plans to receive foreign contributions
Challenges in the Society registration process
While the society structure offers a number of advantages, it is important to be aware of challenges that may arise. Having an idea of such challenges will help you in proactive planning and effective management.
- Many societies, especially those focused on charitable purposes, may face challenges in securing insufficient funding.
- The regulatory system for societies can be confusing, with various legal and administrative requirements to fulfil.
- The democratic nature of societies can sometimes lead to challenges in decision-making.
- The majority of societies depend on volunteers, which can create challenges in terms of recruitment, retention, and ensuring consistent engagement.
- Societies that engage in public-facing activities are subject to public observation.
With careful planning, effective governance, and expert guidance, societies can overcome these challenges and grow.
Checklist to register a society
The way to register your society involves several steps. This checklist will help you stay organised and ensure a smooth registration process.
- Make sure there are a minimum of 7 members in the founding group.
- Confirm that your society's objectives fall within the Societies Registration Act, 1860.
- Choose a unique name for your society that doesn't conflict with existing registered businesses.
- Create the foundational document, stating the society's name, objectives, and governing body details.
- Draft bylaws that govern the society's internal operations, membership, meetings, and dispute-resolution procedures.
- Gather PAN card and address proof (e.g., Aadhaar card, utility bill) for each founding member.
- Prepare a formal letter outlining the society's purpose, signed by all founding members.
Post Registration Compliance
Registering your society is an important milestone, but it is just the beginning of your journey as a society. To maintain your society's legal status and to make sure of transparency, ongoing compliance is essential. Here are the key post-registration formalities you need to know about:
Annual filing requirements
According to the Societies Registration Act, 1860, it is essential to file an updated list of the governing body members with the Registrar of Joint Stock Companies (Section 4 of the Act).
Maintenance of accounts
The Act doesn't clearly prescribe a specific accounting framework, but maintaining accurate and transparent financial records is essential.
GST compliance
If your society's activities go above the GST threshold, then your society should timely register and follow the GST regulations.
Amendments to the rules and regulations
If your society decides to modify its rules and regulations, these changes must be communicated to the Registrar.
Tax implications for a registered society
Registered societies may need to pay income tax on any surplus income they earn annually through various sources. This surplus is the money left over after all expenses are paid.
Tax exemptions
Certain societies can apply to be exempt from paying income tax. To qualify, they typically need to meet certain conditions, such as being charitable or promoting social welfare. This usually involves applying for 12A Registration.
The donors can claim tax deductions on their contributions by registering an 80G Certificate.
Key points to remember
- PAN & TAN: Every registered society needs to have a PAN (like an ID number for tax purposes) and may also need a TAN if they need to deduct tax at source.
- ITR-7: Societies need to file their income tax returns using the ITR-7 form.
- Tax Experts: If you think your society might be eligible for tax exemptions, it is a good idea to talk to a tax advisor or chartered accountant. They can help you understand the rules and make sure you're following them correctly.
We can help you understand the tax implications for your society, apply for relevant tax exemptions, and ensure compliance with all tax regulations.
Bottom Line
Society registration is the first step in creating your vision into a legally recognised and impactful organisation. It is about securing your future, building credibility, and accessing a world of opportunities.
Our team of experts here at Benchmark is ready to guide you through the entire process, making it an easy and stress-free experience. Starting from preparing the necessary documents to understanding the legal complexities, we'll be with you every step of the way.
Contact us today to start your society's journey towards success.
FAQs
What is the minimum number of members required to register a society?
According to the Societies Registration Act, 1860, a minimum of seven members is required to form and register a society.
Can societies registered under this Act be converted into a trust?
Generally, no. Societies and trusts are distinct legal entities with different structures and purposes.
What is the significance of 12A Registration and 80G Certificate?
12A Registration provides income tax exemption to eligible societies. An 80G Certificate allows donors to claim tax deductions on their contributions to society.
Can a registered society accept foreign donations?
Yes, but only after obtaining FCRA Registration. This allows you to legally receive funds from foreign sources.
What happens if the society needs to be dissolved?
The process of dissolving a society is known as winding up. It involves following a specific procedure, which is usually outlined in the society's bylaws under the Dissolution Clause.