NGOs in India: Registered societies

Societies in India are registered through the Societies Registration Act, 1860. A society is formed when people gather to do something with a common goal that is legal, and useful to others. In general, Societies should not be engaged in activities that are oriented towards making a profit. Here we’ll take a look at how Societies are formed, how they operate, how they are dissolved. We will also look at their regulatory compliances. Do note that a Society here does not mean a cooperative company.

How to form a society in India?

A society can be founded by 7 or more people for different purposes. These purposes depend on the applicable laws. The operation of the societies is described in their charter (or declaration). This declaration becomes the basic document used for registration with the Registrar of societies. The societies are divided into two parts for management purposes: a general body and a governing body.

How many members are needed to register a society in India?

It takes seven or more people to register a society. Societies Registration Act is applicable for all societies registered in India.

For what purposes can a society be registered?

Societies can be registered for literary, scientific or charitable purposes, or for the purposes described in Article 20. Additionally, The Gujarat (Amendment) Act also included sport among the objectives of a society; the Delhi (Amendment) also includes the promotion of social welfare, promotion of compassion for living beings and the promotion of fine arts as additional goals.

What is scope of activities a society can conduct?

The scope and limitations of the activities are described by the charter or the memorandum/deed of incorporation of the Society. A charter is a legal document that defines the scope of the society’s activities. It clarifies the extent of the rights and obligations of the board of directors, as well as the methods of collecting funds, grants, assistance, and so on.

How are socities registered in India?

Societies are registered with the Registrar of Societies. Registration is mandatory for a society to have legal identity and be eligible for government funding and projects.

What are the responsibilities of members of a registered society?

A society is divided into two main parts. The duties for each governing body are different.

Duties of the general body

Duties of the general body include electing the members of the governing body. If required, the general body can also change the name, objects, rules and regulations.

Duties of the governing body

The members of the governing body are responsible for managing the affairs of the Society.

How are funds of a society managed in India?

The following conditions are attached to funds for a society in India.

1. The funds are to be used for the objectives of the society;
2. The society should keep accounts and and prepare statement of income and expenses. These documents are to be filed with the tax authorities as required by the law.

What offences and penalties are associated with a society in India?

A society registered in India is subject to Indian laws and regulations. Here are some of the violations and some penalties at a glance.

Some violations

• Failure to disclose the names, addresses, and professions of the governors, the board of directors, the directors, the committee responsible for the management of the society.
• Deliberately providing any false information or financial documents.
• Refusing or failing to send audited statements and information about income and expenses. (In terms of Gujarat Act 17 of 1978)

Some penalties

• The president, secretary, or any other person authorized by the governing body can become liable to pay a fine of up to Rs. 500 and Rs. 50 a day for the continued violation, according to the Assam Act VII of 1957.
• An authorized officer can be fined up to Rs. 200.
• The society or its authorized person must pay a fine of up to 20 rupees in accordance with the Madhya Pradesh Company Registration Act 1973.

What documents does a society need to keep and maintain in India?

The documents a society needs to keep and maintain fall mainly into three categories.

Documents required for registration:

1. Signed Application of request for subscribers of the society (in accordance with the Societies act).
2. Memorandum of association.
3. Rules and regulations of the society (often written in the memorandum).
4. The Society President’s statement indicating the relationship between the subscribers.
5. Proof of address for the registered office premises
6. Self attested ID of all the members (Aadhar card and PAN card)
7. Email ID and phone numbers of all the members (Applicable only in some states)

Documents required income tax purposes

1. Registration certificate.
2. Statement of account, with the certificate of the CA.

Documents required for Section 4

A list of the names, addresses, and professions of the members of the board of directors is to be submitted to the registrar once a year.