A society is an entity comprising a group of individuals that unite for a common purpose. Societies are mostly formed for the promotion of charitable causes, such as education, art, and culture without financial gain (it is one of the three types of NGOs in India). The registration of a society in India is governed by the Societies Registration Act, 1860. The Act is aimed at legalizing the activities of such organizations and bringing uniformity to the way they are governed. The Act has been adopted by all Indian states, many of which have made amended the original Act.

Eligibility for Society Registration

A society may be formed by seven or more persons for the following reasons:

  • 1. Promotion of Science.

  • 2. Promotion of Literature.

  • 3. Promotion of Fine Arts.

  • 4. Diffusion of Useful Knowledge.

  • 5. Grant of Charitable Assistance.

  • 6. Creation of Military Orphan Funds.

  • 7. Foundation or Maintenance of Libraries or Reading Rooms.

  • 8. Foundation or Maintenance of Public Museum or Galleries.

Apart from the above-mentioned purposes, a society can also be formed for any other causes, as per the amendment put forth by the Act.

Procedure For Registration

All Indian states have adopted the act (and some have made amendments). Hence, the rules and regulations may slightly differ from one state to another. Society registrations are approved by state governments through registrations overseen by the Registrar of Societies of each state.

The registration or constitution of a society is done in two parts:

  • 1. Memorandum of Association

  • 2. Rules and regulations of the society

  • 3. Memorandum of Association

The MoA includes several clauses such as the name of the society, the address of the registered office, an object for the formation of society and details of the general body.

Documents for Society Registration

Once you have the documents ready, you are ready to register your society under the Societies Registration Act, 1860. However, ensure that you have all essential documents in hand (other than MOA and rules) for secure processing. The documents needed to be submitted to the Registrar are:

  • 1. A letter requesting registration, signed by founding members. This letter will state the purpose of formation of the society and a requisition indicating that the society is registered under the Act. The signature of all members is mandatory.

  • 2. A certified copy of the MoA, signed by the founding members, with a duplicate.

  • 3. A certified copy of the rules and regulations, signed by the founding members, along with a duplicate copy.

  • 4. A table with the names and address and occupation of all members of the society with their signatures

  • 5. Minutes of the meeting (general body meeting conducted to set the rules and regulations)

  • 6. Declaration by the president of the society

  • 7. A sworn affidavit from the President or Secretary, declaring the relationship between the subscribers.

  • 8. Address proof of registered office and no-objection certificate from the landlord.

The documents are to be filed with the Registrar along with the fees, and a suitable name (which should be unique and not suggest a relationship with the government or violate the provisions of the Emblem and Names Act, 1950). If the Registrar is satisfied with the application, the society will be registered.

Rules and Regulations

The rules and regulations again should address the following questions:

  • 1. How is membership and subscription to be obtained to the society?

  • 2. What rules and regulations govern the society and its members?

  • 3. How are meetings to be organized (their frequency, calling for the meeting and so on)?

  • 4. How will the committee or governing body be formed?

  • 5. When will auditors be appointed?

  • 6. How will legal matters be settled?

  • 7. What can be the reasons for dissolution?

The rules and regulations, when formulated, need to be signed and certified by three office bearers of the society (usually the Chairman, President, and Vice-president or secretary and the president, as applicable).

Both these documents must then be signed by each of the founding members, witnessed by a notary public or chartered accountant with their official stamp and address.

Before applying for registration, one needs to ensure the clauses mentioned in both MoA and the rules are discussed and approved by the members. The ‘Object clause’ in the MOA should clearly state the purpose of formation of the society. This clause may be crucial for the inclusion of the society under the Act.

Hence, hiring an expert to work through the clauses on both MoA and rules and regulations may ensure you have what the registrar is looking for approval of societies.

What is LLP or Limited Liability Partnership?

LLP is a separate legal entity that gives the benefit of limited liability of company plus the flexibility of a partnership, wherein no partner is held liable on account of other’s partner misconduct and their rights and duties to be governed by LLP agreement. Limited Liability Partnership has been introduced in India by way of Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to the owners.

Advantages of LLP

  • 1. Separate Legal Entity

An LLP is a legal entity and a juristic person established under the Act. The partners are distinct from the entity and both can sue each other and get sued in the process.

  • 2. Uninterrupted Existence

An LLP has ‘perpetual succession’, that is continued existence until it is brought on the terms of the dissolution by mutual agreement within the partners. Partners may come and go, but an LLP goes on.

  • 3. Audit not Required

Entrepreneurs earning a turnover of fewer than 40 Lakhs and a capital contribution of less than 25 Lakh need not get their accounts audited. Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.

  • 4. Easy Transferability

The ownership of an LLP can be easily transferred to another person. All you need is to induct them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.

  • 5. Owning Property

An LLP is a juristic person, can acquire, own and enjoy the property in its own name. And this is entirely distinct from its partners. No Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.

  • 6. Limited Liability

The biggest advantage is Limited Liability, which means the status of being legally responsible only for a limited amount of debts of an LLP. Unlike proprietorships and partnerships, in an LLP the liability of the members in respect of the LLP’s debts is limited. The personal assets of the directors are safe if the company goes bankrupt. So it’s entirely a win-win situation for you if you plan to step to head forward with a suffix LLP.

Steps Involved in LLP Registration

  • 1. Application of DSC & DPIN :

Our very first step in this direction would be getting Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) for the proposed Partners of the LLP. Within a timeframe of 5 to 7 working days, DPIN and DSC can be obtained for the proposed Partners. If the partners already have DSC and DPIN, then this step can be skipped.

  • 2. Name approval :

A minimum of one and a maximum of six proposed names are required to be given to the MCA. Subject to availability, naming guidelines and MCA processing time, we will get back to you with the Name approval within 5 to 7 working days. Names provided should ideally be unique and suggestive of company business.

  • 3. MOA & AOA submission :

Once the name is approved, one needs to draft Memorandum of association and Articles of Associate. Both MOA and AOA are filed with the MCA with the subscription statement.

  • 4. Get incorporation certificate :

Incorporation documents can be submitted to the MCA along with an application for incorporation. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time. Incorporation certification is a proof that company has been created. It also includes your CIN number.

  • 5. Apply for PAN, TAN and Bank account :

Then you need to apply for and TAN. PAN and TAN are received within 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with the bank to open your bank account.


Get In Touch Now

आपकी मदद करने में हमें खुशी होगी