Society registration is a suitable business structure for traders & merchants. A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common goal to serve society.
- A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common goal to serve society.
- A society gets registered under The Societies Registration Act, 1860 to become a legal business entity.
- A society must exist for the purpose of charitable activities such as education, poverty relief, arts, religion, cultures, music, sports etc.
- The Governing body members are entrusted with the management of the affairs of the society. Whereas, the General Body member’s responsibilities include the election of governing body members, alteration of procedures, rules and regulations, name and objects, if necessary. A foreigner residence can also become the member of society in India.
- A Society can be formed with an objective to promotion literature, fine arts or science or the distribution of valuable knowledge or political education or for charitable purposes.
As per Section 20 of the Societies Act, 1860, a Society can be registered for the following purposes:
- Charitable assistance
- Formation of Military Orphan funds
- Promotion of Science, Literature& Fine Art
- Distribution of useful Knowledge & Political Education
- Building or maintenance of libraries, reading rooms, Public Museum or Galleries.
- Social Welfare & Social Development
- Other purposes based on the amendment that has been enacted to the Societies Act, 1860 by the concerned State Government.
Decision: - Is Society registration right fit for you to start your non-profit operations?
Management: - A society becomes a separate legal entity once incorporated. It acts as a separate entity even if its membership changes.
Purchase Property: - An incorporated society has the right to lease, rent, buy and sell property. It also borrows money and enter contract in its own name.
Personal Liabilities: - Members are not personally liable for the debts, unless debts are incurred from activities undertaken to obtain money for pecuniary gain or debts incurred through unlawful activities.
Next step is to understand various other implications.