Is Cooperative Society Registration Compulsory?
Yes, Cooperative Society Registration is compulsory in India under the Cooperative Societies Act, 1912. A Cooperative Society is not a new idea. It conquers in all the other countries, and this is almost a universal idea. The Cooperative Society is active in India and all other countries globally, and it is represented in all the sectors, including food, healthcare, agriculture, finance, etc. The Cooperative Society is formed only to protect the interest of weaker sections, and it is a voluntary association of persons whose purpose is the member’s welfare. Scroll down to check more information regarding Cooperative Society Registration.
Features of a Cooperative Society
Following are the features of Cooperative Society:
- Open Membership: When at least ten members with a common interest come together to form a society, then it is known as Cooperative Society. Moreover, the Cooperative Societies Act, 1912 doesn’t specify any maximum number of members for a society, while the member may specify the maximum number of members after the establishment of the society.
- Fosters Service Motive: Unlike other types of organization, these societies don’t highlight on maximizing the profit, and the primary objective of a cooperative society is to fulfil the common interest of the members.
- Voluntary Collaborations: Without the volunteer efforts of members to establish a society, Cooperative Society Registration is not possible. The members have the freedom to leave and join the Cooperative Society at any time by providing a legal notice of the same.
- Self-Ruled Management: Every Cooperative Societies must follow all concepts which obstructs dictatorship rule. These societies conduct AGM (Annual General Meeting) every year to select BODs (Board of Directors) regardless of how many shares hold by a member, he or she has a single vote only.
- Separate Legal Entity: When a company registered under the Cooperative Societies Act, 1992 it automatically becomes a separate legal company or entity. Cooperative Society holds limited liability of all the members in the society. Some examples like death, bankruptcy or insanity of any member of the society will not affect the Cooperative Societies, and also members have the power to enter in an agreement with other to purchase or sell properties.
Also, Read: How to register a Co-operative Society?
What are the Documents Required for Cooperative Society Registration?
Following is the list of all the vital document required at the time of registration under the Cooperative Societies Act:
- Submit a copy of PAN Card of all the members of the designated society along with the application.
- Submit a valid residential proof of all the society’s members including Passport, Aadhar Card, latest Utility Bill, Driving License, and Bank Statement.
- Obtain MOA (Memorandum of Association) which contains the following information and clauses:
- The significant objectives of your society for which it got created.
- Details of all members creating the society.
- The registered office address of the society.
- Obtain AOA (Articles of Association) which must contain the following information:
- Rules and Regulations which will maintain and manage regular activities of the proposed society.
- It will also contain the rules for taking the Cooperative Society’s Membership.
- Details regarding the meeting that will be conducted in future.
- Auditor’s information.
- In case of disputes between the members of the society, submit Forms of Arbitration.
- Ways for the dissolution of the society.
- Submit a cover letter which mentions the society’s objective or purpose. Make sure that every founding member of the society must sign the letter.
- Submit a copy of the address proof where the registered office is situated along with a No Objection Certificate (NOC) from the landlord if any.
- Deatiled list of all the members of the governing body along with their signatures.
- Submit a declaration by the president of the society which needs to submit along with the application form. He or she must confirm that he or she is willing and competent to hold the specified position.
What is the Process of Cooperative Society Registration?
If an individual wants to apply for Cooperative Society Registration under the Cooperative Societies Act, 1912, then you have to follow the process as we mentioned below:
- Step 1: To form such society, it is essential to find ten members who share a common objective and desires to start a society.
- Step 2: After that, form a Provisional Committee and elect a Chief Promoter amongst them.
- Step 3: All the members should voluntarily select a society’s name.
- Step 4: After selecting the society’s name, you need to apply to the Registration Authority for Name Reservation of your Cooperative Society. You must acquire a confirmation letter for the Name Reservation and also understand that the reserved name is valid for three months.
- Step 5: Additional, collect the entrance fees and share capital from all the proposed members of the society.
- Step 6: Open a bank account in the society’s name and deposit the entrance fees and share money in the bank account and also obtain a certificate.
- Step 7: You have almost completed the process of Cooperative Society Registration. Now, you have to deposit the registration fees with RBI or Reserve Bank of India and then obtain a receipt of challan.
- Step 8: Submit the application for Cooperative Society Registration to the Societies Registrar of the municipal ward along with the essential documents.
- Step 9: Following your application, the Registrar will enter the details in his register in Form B. Thus, they will give you a serial number and issue a receipt in acknowledgement of the same.
- Step 10: At the end, the Registrar will notify you about the Cooperative Society Registration in the official gazette and issues the registration certificate.
Cooperative Society Registration is a step which can help to build a progressive association and strengthen the weaker sections of our society. If you wish to establish such a society, then gather a minimum of ten members that have a mutual goal with you. Then take the assistance of our professionals at Swarit Advisors. We will help you at every step to ease the registration process.
Also, Read: Co-operative Society Registration in Maharashtra