Society registration in India - An overview

A Society can be referred to as an association of multiple individuals with a common interest. The group of individuals focus on governing and taking initiative for achieving a common goal. The Society Registration Act in India governs the registration and the functioning process. According to the aforementioned laws, the societies are registered and run to advance the humanities, sciences, literature, or knowledge exchange for a good cause or with a goal. In order to function effectively a society must register.

Reason for Registration of a Society

• To support arts
• Political education dissemination
• Donation of a charitable gift?
• Promotion of literature and science
• Establishing funds for military orphans
• Building public museums
• Construction of public galleries
• Establishing libraries
• Promotion, dissemination, or instruction of knowledge that is useful
• Natural history museum collections
• Assemblages of mechanical and philosophical designs, creations, or tools.

Documents Required for Society Registration

• PAN cards of each and every member of the society
• Account Statement
• Utility Bill, driving license, and aadhaar card
• Passport
• Articles of Association (AoA)
• Terms and conditions of the society
• Guidelines to join the society
• Address proof
• Information of all the participant

Online Society Registration

The society registration has to be completed in a step-by-step Instructions following the Act. The following requirements must be met in order for a society to be registered:

• Members: A state society must have at least seven members, and it must have at least eight members from at least eight distinct states (including one from Delhi)
• Jurisdiction: Wherever the society's registered office is located is the applicable jurisdiction. in front of the district registrar for that specific region.
• Regulating Act: The societies registration Act of 1986 governs the registration process.
• Property management: The property of the society is owned in its name and may be sold in accordance with the conditions outlined in its byelaws.
• Dissolution: In case of dissolution the registered society has to wind up all the debts and liabilities and should donate the remaining funds to other societies having a similar objective. The fun will never be shared among the members
• Executive committee: It comprises of a president, secretary, treasurer, and a vice president
• Annual Compliance: Societies are required to submit an annual list of the names, addresses, and jobs held by members of their managing committee to the Registrar of Societies.

Society Compliances Post Registration

Following registration, a trust must take the following actions:

• Acquire a PAN card
• Establish a bank account
• Accounting and bookkeeping
• Yearly IT filings
• GST registration, if applicable; professional tax registration, if required
• Observing the Registrar of Firm's requirements - AGM resolution, financial information, and a member list must all be filed with the Registrar of Firms.

Applicability of Tax Exemption

There is a prevalent belief that because society works for the wellbeing of the general population, it is not necessary for them to pay taxes. This is not the case. Taxes must be paid by a society, just like any other legitimate enterprise. A society needs a certificate of completion from the income tax officials for all applicable exclusions, like Section 12 A, 80G, etc., in order to be exempt from paying taxes.

Recent Updates

New Rules Impose Restrictions on NGOs and Other Registered Societies To Get Foreign Funding

Nov 13, 2020

As per the new rules introduced by the Centre, organisations and NGOs seeking foreign funding must submit a ‘commitment letter’ from the foreign donor, indicating the amount and the purpose. Furthermore, if the amount is over Rs 1 crore, the amount may be given in instalments. However, the second and subsequent instalments can only be released if proof for the utilization of 75% of the first instalment has been submitted, and after field inquiry for the utilization has been completed. Also when registering under the Foreign Contribution Regulation Act (FCRA), the rules state that an organisation must have been in operation for at least three years and spent a minimum amount of Rs 15 lakhs for the benefit of society during the last three financial years.

Annual General Meeting till December

29th July: In Tamil Nadu, the registered societies have been allowed time till December to conduct the Annual General Meeting. The Registration department has extended the deadline.

10th April: Co-op housing societies in Mumbai register online for grocery & veggies delivery

Now cooperative housing societies can register online with Maharashtra Cooperative Development Corporation Limited and order grocery and vegetables online. This is an initiative to make successful social distancing.

Society Registration Recent Updates

The Foreign Contribution (Regulation) Amendment Act, 2020 was upheld as constitutionally valid by the supreme court on friday, saying that accepting foreign donations cannot be a right in and of itself.

There is a limitation implied on how the non government organisation, general public and other organisation can receive funds from abroad. The latest implications were imposed by the Indian government in 2020 amending the FCRA. This action has attracted negative criticism from some people.