byShine legal India
Published On 2025-06-26
A society startup registration comes into existence when a group of individuals comes together with a common objective such as a charitable or a social cause. There must be a minimum of seven people in a society. These organisations are governed by the Societies Registration Act of 1860 but the detailed rules about the formation of society startup registration can differ from one state to another.
What is the purpose of a society?
The Societies Registration Act of 1860 mandates that a society must pursue charitable objectives to qualify for legal registration. These societies should aim to advance one or more of the following charitable objectives, such as
- Science and literature
- Performing fine arts
- Charitable purposes
- Other government-approved causes
Documents needed to register for a society in India
- PAN cards of all founding members
- Proof of residency, such as an Aadhar card or utility bill is required for every member of the community.
- 2 photocopies of Memorandum of Association (MOA)
- 2 photocopies of rules and regulations of the proposed society, such as operational rules for the society, membership guidelines, society meeting schedules, dispute resolution mechanisms and more.
- Letter of request in accordance with the Societies Registration Act of 1860.
- No Objection Certificate (NOC) along with an Affidavit in the prescribed format as provided under the Society Registration Act of 1860 from the owner or General Power of Attorney (GPA) holder of the premises which is proposed to be used as the registered office of the Society.
- A cover letter signed by all of the founding members of the society that outlines the goal of the society.
- Proof of the registered office of the society, such as a sale deed, lease deed and more.
- A list of governing body members including their signatures.
- A declaration from the proposed president of the society confirming their willingness and eligibility to hold the position.
- One original affidavit by the president, secretary, or general secretary of the society on Rs. 10/- non-judicial stamp paper. The affidavit should state the relationship between the people who want to form the society and the name of the society will be changed or withdrawn if it is found to be already registered by someone else.
Advantages of registering a society
- Society registration increases trustworthiness and public recognition
- Registration of societies provides easier access to fundraising opportunities
- Society registration makes the eligibility for various tax exemptions
- Registering a society provides effective organizational governance
- Society registration helps in legal protection from potential claims or disputes
- Registration of a society reduces financial liability for individual members
- Society registration provides access to grants and financial aid from the government and other institutions
Eligibility criteria for society registration in India
- Minimum membership-To create a society, there must be at least seven founding members.
- Purpose of the society- The goals of the society should match with Section 20 of the Society Registration Act of1860 such as charitable, literary, scientific or other similar purposes.
- Memorandum of Association (MOA)- The MOA which sets out the aims and operational guidelines of the society, must be signed by the founding members of the society.
- Official address- A registered address is required for the society.
- Governing committee- The society should have a managing body that includes important positions such as president, secretary and treasurer.
- Financial records and auditing- Proper financial records of the society must be maintained and annual audits of the society are mandatory to ensure transparency and accountability.
Step-by-Step procedure for registering a society
1. Submitting the application
To start the formation of a society, an application is filed with the Registrar of Societies in the relevant applicable state. This application must include a sworn affidavit in the prescribed format as provided under the Society Registration Act of 1860 along with essential supporting documents such as identity proof, proof of address and bank statements.
2. Preparing the MOA and rules of the society
The next step for registering the society involves the formulation of the MOA and establishing the governing by-laws of the society. The signatures of a minimum of three founding members of the society are required for these documents. The MOA details the society’s objectives, while the by-laws of the society set out the rules and procedures that will govern the operation of the society.
3. Passing a board resolution
A formal resolution must be passed by the founding members of the society which signifies their agreement to form the society. This document should clearly identify the office holders and define their roles and responsibilities.
4. Drafting an affidavit on stamp paper
Prepare an affidavit on a non-judicial stamp paper confirming the society’s name and registered office address. Signing this affidavit is mandatory for the founding members.
5. Paying the registration fee
The final step for registering the society involves the payment of the applicable registration fee, which may vary by state. In order to officially recognise the society as a legal entity, the Registrar will issue a Society Registration Certificate following successful payment and document verification.
Essential legal requirements after society registration (Post compliance)
- Making an application for a society PAN card - The society must obtain a Permanent Account Number (PAN) from the Income Tax Department in order to carry out its financial and tax activities.
- Opening a bank account of the society - A bank account should be opened in the name of the society with a recognised bank to manage the society’s financial transactions.
- Maintaining financial records of the society - Maintaining accurate and timely bookkeeping is necessary to track the society’s earnings, expenses and property.
- Filing annual tax returns of the society - The society is required to file its income tax returns every financial year even if the society claims exception.
- Registration for GST and professional taxes (if applicable)
- Registrar of Firms (RoF) compliance - Societies must comply with state RoF regulations, which include submitting resolutions passed at Annual General Meetings (AGMs) which provide updated financial statements and maintain an up-to-date list of members.
Conclusion
Registering a society under the Society Registration Act of 1860 is an important step for any organisation that is looking to formalise its efforts towards charitable, educational, literary and other charitable purposes. Registering a society helps to build trust with people and makes it easier to get money, grants and other tax benefits. By properly managing these responsibilities and staying compliant with relevant laws a society can function efficiently and can contribute significantly to its mission.