How to Start a Multi State Cooperative Society Registration

service package

What is Multi State Cooperative Society Registration?

The primary motive of Co-operative Society is to protect the interest of the economically weaker sections of the society. In every form of organization, whether it is a Sole Trader, Partnership or Joint Stock Company; the primary motive is to increase profits. This form of organization is considered as democratic set up run by its members to serve the interest. Behind this, the main philosophy is "All for each and each for all". It is a self-help as well as mutual help.

Co-operative Society is formed under the Co-operative Societies Act, 1912 or under the relevant state Co-operative Society's law. This type of organization can be formed by at least 10 adult members. Another requirement is that the members willing to form a Society must have common bond among them. They may be the residents of same locality, colleagues, belonging to some group having affinity etc. Every person who intends to form a Society should have some common objectives to achieve.

Characteristics of Multi State Cooperative Society Registration

cooperative society registration sharacteristics
  • Open Membership

    Co-operative Society Membership is open to all those who have a common interest. Minimum 10 members are required to form a Society. Maximum number of members is not specified under Co-operative Societies Act. However member may specify the maximum number of members after the formation of the Society.

  • State Control

    Co-operative Societies are placed under state control for Registration to protect the interest of the members. Society has to submit the details of the members while getting registered. Books of accounts are required to be maintained which are required to be audited by Government Auditors.

  • Democratic Management

    Co-operative Societies are managed by a group known as "Board of Directors". Boards of Directors are the elected representatives of the Society. Irrespective of the number of shares held, each member has a single vote.

  • Voluntary Association

    Members can voluntarily join Co-operative Society. A member can leave the Society at will.

  • Sources of Finance

    Under Co-operative Society, capital is contributed by all the members. However, loans and secure grants can be easily raised from government after its Registration.

  • Service Motive

    Like other forms of business organization, Co-operatives are not formed to maximise profit. Its main objective is to provide service to its members.

  • Separate Legal Entity

    After Registration under Co-operative Societies Act, a Co-operative Society becomes a separate legal entity, with limited liability of its members. Death, insolvency or lunacy of a member will not affect the existence of a Society. The members can enter into Agreements with others and can purchase or sell properties under its own name.

  • Distribution of Surplus

    Co-operative Society also generates some profit while conducting business in addition to providing services to its members. Profits are not earned at the cost of its members. Unlike Companies, profit generated is not distributed to its members on the basis of the shares held by them but on the basis of their participation in the business.

  • Self-help through Mutual Cooperation

    The main principle of Co-operative Societies is mutual help. They are formed for the financially weaker sections of Society. By adopting the principle of self-help through mutual co-operation, Co-operative Societies convert the weakness of members into strength.

Documents required for Cooperative Society Registration

From Directors

  • Form A must be accompanied with statement A in addition to Registration Application in quadruplicate and must be signed by 90% of the Promoter members.
  • List of Promoter members.
  • Bank Certificate.
  • A detailed explanation of working of the Society.
  • 4 copies of proposed bye-laws of the Society.
  • Proof of payment of Registration charges.
  • Other documents such as Affidavits, Indemnity Bonds, any documents specified by Registrar are also required to be submitted.
  • Registrar will enter the particulars in register of Application maintained in Form “B”, give serial number and issue receipt in acknowledgment of the same.
  • On Registration, Registrar will notify the Registration of the Society in the Official Gazette and issue Registration Certificate.

Types of Cooperative Societies

types of cooperative

Here are the following types of Co-operative Societies:

  • Producers Co-operative Society

    Producers Co-operative Society is formed mainly for the purpose to protect the interest of small producers by making available items of their need for production such as raw material, tools & equipment, machinery etc.

  • Consumers Co-operative Society

    Consumers Co-operative Society is formed mainly for the purpose to protect the interest of general consumers by making consumer goods available at reasonable price. By directly buying goods from the producers or manufacturers, they eliminate the middlemen in process of distribution.

  • Co-operative Marketing Societies

    Co-operative Marketing Societies are mainly formed by small producers and manufacturers who find it difficult to sell their products individually. The Society collects products from the individual members and take the responsibility of selling those products in market.

  • Co-operative Credit Societies

    Co-operative Credit Societies are mainly formed for the purpose of providing financial support to the members. The Co-operative Credit Societies accepts deposits from members and grant them loans at reasonable rates of interest, when required.

  • Co-operative Housing Society

    Co-operative Housing Society is mainly formed to provide residential houses to the members. Under this, they purchase land, develop it and construct houses or flats and allot the same to the members. Some of these societies provide loans to the members at low rate of interest to construct their own houses.

  • Co-operative Farming Societies

    Co-operative Farming Society is formed by small farmers to work jointly and thereby enjoy benefits of large scale farming.

Procedure for Multi State Cooperative Society Registration

Here are the following steps to register a multi state cooperative society:

  • Ten individuals are required together who are desirous of forming a Society.
  • Need to form provisional Committee and a chief Promoter should be elected from amongst them.
  • Name of the Society has to be selected.
  • An Application is required to be made to Registration Authority for name reservation and for confirming the name reservation, a letter to that effect has to be obtained. Reserved name is valid for 3 months.
  • Entrance fees and Share Capital has to be collected from the prospective members.
  • As per the directions of Registration Authority, a bank account has to be opened in the name of the proposed Society. After this, entrance fees and share money has to be deposited in the bank account and the Certificate from the bank has to be obtained in this respect.
  • After this, Registration fees has to be deposited with Reserve Bank of India and obtain receipt 1Challan.
  • An Application should be submitted to Registrar of Societies of the concerned Municipal Ward for Society Registration.

FAQs of Multi State Cooperative Society Registration

Any society that is formed with the object of the economic and social betterment of its members by way of self-help groups with mutual aid, but is registered in more than one state is known as Multi State Cooperative Society.

The different types of Societies are Credit Cooperative Society, Housing Co-operative Society, Farming Co-operative Society, Dairy Farm Multi-state Co-operative Society, Solar Credit Cooperative Society, Multi-state Multi Purpose Cooperative Society, and Transport Co-operative Society.

A Society that is involved in all types of finance related work, such as accepting deposits and lending loans to its member is known as Credit Co-operative Society.

A Society that is involved in all types of housing related work, such as form, promote, and register a housing society is known as Housing Co-operative Society.

Any Limited Company, BOI (Body of Individuals), or AOP (Association of Person) can form a Housing Co-operative Society.

Normally, a period of 5 to 6 months after submitting the documents is required by the Ministry to approve the registration of a Multi-state Co-operative Society.

The main difference between the both is that Former can easily be incorporated by an individual. However, a fully democratic organisation can only incorporate the Latter.

The quorum for any type of GM (General Meeting) of a Co-operative Society is 1/5th of the total number of the ordinary members of the society.

Out of the total 1/5th at least 1/2nd needs to vote in favour for a successful resolution.

A Multi-state Co-operative Society cannot use any part of funds, other than the “net profit” of the society as Bonus or Dividend or in any other manner divided among the members of the society.

Yes, a multi-state cooperative society can provide a loan to its member on his/ her own security.

No, a multi-state cooperative society cannot provide loan to its member on the security of another person.

Yes, a Multi-state Co-operative Society can accept deposits, raise loans and receive grants from the external sources to such an extent as specified in the ByeLaws of the Society.

The features of a Multi-state Cooperative Society are Open Membership, State Control, Democratic Management, Voluntary Association, Ease in Finance, Service Motive, Separate Legal Entity, Distribution of Surplus, and Self-help through Mutual Cooperation.

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