Society Registration for Schools: A Complete Checklist

A Society is an association of few individuals, who have decided to work and act for some common purpose. Further, it is registered mainly for the progress of charitable activities. In India, the Societies Registration Act, 1860, is the governing law for the societies. In this blog, we will talk about the concept of “Society Registration for Schools”.

Furthermore, the term ‘Charitable activities‘ denotes fields such as education, music, art, etc.

Purpose of the Societies Registration Act 1860

In India, the aims and objectives of Society Registration are provided under section 20 of the Act. The same are as follows:

• Promote Fine Arts;
• Impart Political Education;
• Encourage Science and Literature;
• Give Charitable Support;
• Maintain Libraries;
• Impart Beneficial Knowledge;
• Preserve Museum and Galleries.

Things to Consider During Society Registration for Schools

The things to consider during registering a society for school are as follows:

• The Emblems Act, 1950, prohibits the improper use of any name and emblems. It provides that the applicant needs prior permission of the government to use the prohibited names.
• The Emblems Act, 1950, also restricts the use of the name of “national heroes”. Therefore, it is advisable to all the societies to consult with advisors before proposing the name for the society’s registration.
• A Society cannot use any name of the company or society already registered. As it will lead to the duplication of the registered name.
• The MOA (Memorandum of Association) of the Society should provide the information as follows:
  • Name of the Society;
  • The objective of the Society;
  • Details and Particulars regarding name, address, and professions of the governors, director, council, and committee;
• The by-laws, rules, and regulations must be certified by at least three members of the governing body.

Aims and Objectives of the School Registered

The objectives of the School registered under the Societies Registration Act, 1860 [1] , can be summarised as:

• Open and run vocational and educational schools to teach poor and backward class children;
• Maintain libraries and arrange and publish books on cultural, educational and social topics;
• Organised debates, seminars for imparting knowledge about the surroundings of the people;
• Provide hostels to the students, physically disabled or specially-abled;
• Provide vocational training for the semi-skilled jobs to physically disabled people;
• Ensure the best education available at affordable rates;
• Emphasis on shaping up the character of the students;
• Work on the skills like discipline, and growth of social and cognitive faculties;
• Create a healthy and suitable environment for the students;
• Organise social and cultural platforms like annual day, kiddo fest, sports fest, food fest, etc.;
• Utilise all the funds on the movable and immovable properties especially for the objects specified in the MOA;
• lastly, offer free meals, clothes to the children from the backward section of the society.

Can a Society get Sued?

Yes, as per section 6 of the Act, a registered society is a body corporate. That means it is eligible to sue and get sued by the third party.

Society Registration for School: Sources of Income

The following are the sources of income for a school registered under the Act:

• Fees through Admissions;
• Capital Fund of the Educational Society;
• Funds collected through Donations and Favours;
• Funds acquired by the Subscription and Donation from the members;
• Aid from Central or State governments;
• Funds from charitable trusts, institutions, and associations;
• Lastly, the Funds collected as donations from foreign charitable institutions.

Audit of the Educational Societies

Every educational society must get the audit of their accounts done at least once a year. However, only an experienced auditor is eligible to audit the account of these societies.  Further, the financial year for the society registered as a school will be 1^st April to 31^st March of every year.

Benefits of the Society Registration for Schools

The benefits of society registration for schools are as follows:

• Provides Legal Status;
• Assists in opening Current Account;
• Benefits under the Income Tax Act;
• Recognition before Government Authorities;
• Statutory Vesting of Wealth;
• Lastly, it can Sue and be Sued.

General Body Meetings of Educational Society

The rules for the general body meeting of an educational society are as follows:

• All the Members of the society must attend the General Body Meetings;
• Society must hold at least one general body meeting in a year;
• The quorum of the meeting needs to be at least 2/3^rd of the total members;
• For holding a meeting at shorter notice, written consent of at least 3/4^th members is required;
• Agenda of the meeting includes the following:
  • Discussion on Annual Policies;
  • Arrange Annual Programs;
  • Pass Annual budget for the Society;
  • Appoint a Qualified Auditor;
  • Lastly, consider any other business recommended by the Government.

Also, Read: Alteration of MOA: Guide to Alter Memorandum of Association

Governing Body for the Society Registration for Schools

The Governing Body of Society is responsible for managing its affairs and operations. The members of the Governing Body for the Society Registration for Schools are as follows:

• One President;
• One Vice President;
• One Secretary;
• One Treasurer;
• Members.

Roles and Responsibilities of the Office Bearers

The following are the role and responsibilities of the office bearers:

• President: He/she is the head of society and is responsible for supervising the general body meeting. Further, a chairman has a right to cast a vote in the general body meetings.
• Vice President: A Vice President acts in the absence of President. Moreover, he/she has full powers delegated to the President.
• Secretary: The roles and responsibilities of a secretary are as follows:
  • Sign documents on behalf of the school;
  • Bear all its correspondence;
  • Record the minutes of the General Body Meetings;
  • Summon and appear in the meetings of society;
  • Hold an ordinary general meeting of the society on the written request.
• Treasurer: A Treasurer is responsible and accountable for maintaining the books of account. Further, he/she is also responsible for furnishing society’s income and expenses in the general body meeting. 

Documents Required for Society Registration for Schools

The documents required for obtaining society registration for schools are as follows:

• An affidavit regarding the Ownership of the Registered Office;
• A No Objection Certificate from the Landlord of the premise used as a registered office;
• An affidavit regarding the persons or the members not related to each other;
• ID Proof of the members, such as Aadhar Card, PAN Card, Driving License and Voter ID;
• Address Proof of the members, such as Rent Agreement, Lease Deed, or Utility Bills. Further, utility bills include electricity bill or water tax;
• A Covering Letter stating the objectives of society registration for schools;
• A copy of the document concerning the property of the society;
• A copy of the minutes of the last general body meeting;
• Copies of the latest bank statements;
• A copy of the declaration given by the president that he is ‘competent’ and ‘willing’ to hold the position;
• Memorandum of Association: A copy of MOA of the society, having the following details:
  • Objectives of the educational society;
  • Details of the members of the society;
  • Address of the Registered Office of the Society.
• Article of Association: A copy of AOA of the society, including the following details:
  • By laws, rules and regulations of the society to administer and govern day to day affairs;
  • Rules for the admission of a new member;
  • Details and particulars of the general body meeting;
  • Information about the Auditors;
  • Forms of Arbitration in case of any dispute;
  • Lastly, the methods for the winding up of the society.

Important Points for obtaining Society Registration for Schools

• All the members of the society need to sign the MOA and AOA of society;
• Further, any private entity willing to start a school need to obtain section 8 company registration;
• Furthermore, all the documents for society registration for schools need to be submitted to the Registrar of societies;
• These documents are required to be submitted in two copies together with the requisite fees;
•  The ROS will return the first copy after acknowledging it. However, he will keep the second copy for approval;
• After the proper verification of documents the ROS will issue a Certificate of Incorporation;
• ROS will also assign a registration number to a society registered for schools.

Income Tax Benefits on Society Registration for Schools

The following are the income tax benefits available on society registration for schools:

• As per section 10(23C) (iiiad), the income received by schools is exempted from the Income Tax Act. However, the income earned must not exceed the limit of Rs one crores;
• If the income of a school is beyond one crore, it can also get exempted from the IT Act.
• However, for availing exemption, the school must not fall under sub-clauses (iiiad) and (iiiab). Also, the competent authority has permitted the exemption in Form 56D. there are two additional conditions for availing exemptions, which are as follows:
  • An educational institution must spend 85% of its total income on benefiting exemption. It can retain only up to 15% of the income;
  • An educational institute needs to invest its revenue as per the methods given under section 11 (5).
• As per section 139(4C), all the educational institutions need to furnish Annual Return whose income exceeds the above limit.

Conclusion

It is crystal clear that any society that wants to start a school needs to first obtain registration under the Societies Registration Act. Further, a private company can also start school. However, it needs to obtain section 8 company registration.

Moreover, the members of the governing body are accountable for the affairs of the school. However, a society cannot avail of any tax exemption if it uses revenue for any purpose other then the one provided in the articles.

Furthermore, SwaritAdvisor s is a one-stop destination for obtaining society registration. Because our experts offer services from registration to licensing to compliance.  

Also, Read: How to check Society Registration online?