Importance of Registering your Society

·   The Society Registration Act, 1860, has been adopted by multiple state governments in India, with some modifications. The importance of society registration in India cannot be underestimated. The Society Registration Act provides guidelines and procedures for the registration and functioning of societies. 

·   To preserve harmony and enhance social welfare, it is expected that all members of the Society demonstrate mutual thoughtfulness and adhere to the guidelines outlined in this Act.

·   This act aims to enhance the legal framework and requirements for society registration, specifically for the promotion of literature, science, fine arts, and the dissemination of knowledge for charitable purposes. 

What is the main objective behind establishing the societies?

The purpose of creating societies is to promote various fields such as science, literature, fine arts, and disseminate useful knowledge. Societies can also engage in political education and charitable activities. According to Section 20 of the principal Act, society registration can be done for the following objectives:

1. Providing funds for charitable aid

2. Establishing military orphan funds

3. Authorizing societies at the General Presidencies of India

4. Supporting science, fine arts, literature, and similar endeavors

5. Spreading useful knowledge

6. Promoting political education

7. Establishing and maintaining reading places, reading rooms, or libraries

8. Establishing galleries of paintings or public museums

9. Collecting and preserving natural history

10. Carrying out works of the Act

11. Encouraging philosophical and mechanical inventions

12. Protecting designs and instruments.

What is the process for registering an NGO as a society in India?

·  In India, the process of registering a society is governed by the Societies Registration Act. To register a society, the individuals involved must first decide on its name and then prepare a memorandum and rules and regulations.

·  When drafting the Memorandum of Association, you must include six important clauses: the Name Clause, Objects Clause, Liability Clause, Domicile Clause, Subscription Clause, and Capital Clause.

·  The memorandum of association, also known as MOA, is a crucial document that outlines the purpose and objectives of the society. It also establishes the scope of its powers and operations. When drafting the MOA, careful supervision is necessary to ensure that the society can fully achieve its goals. All members of the society must sign each page of the MOA, and their signatures must be attested by a qualified professional or authority, such as an advocate, notary public, or chartered accountant, who will also provide their official stamp and registered address.

Procedure for Registering a Society Online

To register a society online, you need to follow the procedure outlined by the concerned state authority. Here's what you need to do:

1. Choose a Name: According to the Indian Society Act, the society's name should be unique and not resemble any already registered society. It should be widely accepted by all members. The name cannot violate any legal requirements or statutes.

2. Draft a Memorandum of Association (MoA): The society should create a MoA that outlines the rules, responsibilities, and regulations of the society and its members. The MoA should be signed by the society members, along with witnesses such as a notary, oath commissioner, or first-class magistrate. Their stamp and complete address should be included.

3. Submit the Application: File the application, along with two copies of each required document, to the Registrar of the respective state. The Registrar will sign one copy as confirmation and provide the second copy to you as a license.

4. Registration Process: Once the Registrar receives your application, they will review it for accuracy. If satisfied, they will allocate a Certificate of Registration with an authorized registration number.

By following these steps, you can successfully register your society online.

Section 8 Company vs Society: Understanding the Differences

Section 8 Company

·  When it comes to the structure of the company, a Section 8 Company can be considered complicated or complex. 

·  The name of the company needs to be sanctioned by the Registrar of the Companies, which can be a bit challenging. 

·   Meetings must be held in accordance with the provisions of the Companies Act, 2013. The administration of a Section 8 Company requires strict adherence to the provisions of the Companies Act, which can be difficult, lengthy, rigid, and time-consuming. However, Section 8 Companies enjoy a reputation of status, which can be beneficial. 

· Additionally, the penalties for non-compliance with the Companies Act are more severe and attract higher fines and penalties.

Society

·  On the other hand, societies are relatively simple and easy in terms of their structure. 

·   The process of selecting a name for a society is not difficult. 

·   Meetings must be held as per the provisions outlined in the Act. The administration of a society does not have as many restrictions imposed under the Act, making it less burdensome. Registered societies receive a similar reputation as companies. 

·   Furthermore, very few offences and penalties have been specified for societies.

Benefits of Society Registration

Enrolling a society offers several advantages.

·   A registered society has a recognized legal status.

·   The society can legally open a new current account in its name.

·   The society is eligible for commissions and benefits as per the Income Tax Act.

·   Registration provides the necessary legal status for managing the society's wealth.

·   A registered society is recognized by all authorities and forums.

·   Members of the society are legally bound to its objectives, similar to signing a memorandum.

·   A registered society has the right to initiate legal action or be subjected to legal action.