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Purpose for creation of society |
What is society?
A society is an association of several persons combined for the promotion of a common cause without any monetary gain. Society is a legal form and is governed by the Societies Registration Act, 1860. A society has been described as a company or association of persons (generally unincorporated) united together by mutual consent to deliberate, determine and act jointly for common purpose.
Purpose for creation of society:
- Grant of charitable assistance
- Promotion of science, art, literature, sports, etc.
- Collections of natural history.
- Diffusion of useful knowledge.
- Mechanical and philosophical inventions.
- Foundation or maintenance of libraries.
- Creation of military orphan funds.
Eligibility and requirement to form a society:
At least 7 persons may by subscribing their name to the memorandum of association forms a society. Such MOA is required to be filed with Registrar of Joint-stock companies.
Procedure to form a society:
- Name selection and its approval from registrar:
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- It is necessary that while selecting a name for society registration, it should be according to Society Act, 1860 i.e., an identical or similar name of a currently registered society will not be allowed.
- The proposed name should also not suggest for any patronage of state government or government of India or fascinate the provisions of Emblem & Names Act, 1950.
- Preparation of MOA:
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- MOA is a charter of Society. It contains the following clauses:
- Name clause
- Object clause
- Registered office clause
- Governing Body Member clause
- Preparation of rules and regulation (by-laws):
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- Rules and regulations contains the following clauses:
- Membership clause
- Meeting clause
- Governing Body Member clause
- Other documents:
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- This also requires the following documents:
- Copy of resolution for Registration of Society
- Copy of resolution Authorizing a person to make application for registration
- List of members of Society along with their address
- Rent Agreement or Registered Paper
- NOC from Land Lord
- Submission of documents for registration:
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- MOA along with rules and regulations to be filed with respective Registrar of Society.
- Copy of rules and regulations of Society should be certified by at least 3 members of the governing body of the Society. After being satisfied, the Registrar approve the application and grant Certificate to the Applicant.
Post compliances:
- Post compliances vary from state to state. However, there are some general compliances to be done. These are as follows:
- Hold Board Meeting of Society every year.
- Hold AGM every year.
- Once in every year, within 14 days of AGM, a list of members shall be filed with the Registrar of Society.
- Maintain proper accounts of Society.
- Maintain minutes of board meeting and general meeting of society.
- Filing of ITR.