A society is formed when a group of people comes together for a common purpose or a charitable cause. A minimum of seven people is required to form a society. And these societies are governed by the 'Societies Act, 1860
Is it necessary to register society?
The society should be registered under the Act to acquire the status of juridical person. In the absence of registration, all the trustees in charge of the fund have alone a legal status and the society has no legal status, and, therefore, it cannot sue and be sued.
Name Selection for the Society
In view of the Society Act, 1860, the applicant must keep the following facts in mind before selecting the society's name;
- The proposed name should not possess any resemblance with existing names since it is an offence. The proposed name should not violate the provisions of the Emblem & Names Act, 1950.
- The name should be original and free from an element that hampers third-party interest in any way.
Documents Required for Registration
Following documents have to be furnished for registering society .
- Application Form in Prescribed format.
- Proceedings of the first meeting.
- Self-attested copies of By-Laws
- Self-attested copies of Address and ID Proofs of the office bearers.
- Passport size photographs of Committee members.
- Committee members ID and address proof.
- If the office is in rented premises, lease agreement
- In case of office is in own premises declaration therof
A society shall after its registration shall do the following:
- Obtain PAN card
- Open a bank account
- Bookkeeping and accounts
- Annual IT filings
- Professional tax registration, if applicable
- GST registration, if applicable
- Compliance with the Registrar of Firm - Filing of AGM resolution, accounts to be disclosed and member list to be filed with the Registrar of Firms.
Applicability of tax exemption
There is a general notion that society need not pay tax as they work towards the welfare of the public at large. But this is not true. A society, like any other legal entity, is liable to pay tax. In order to be exempted from tax, a society is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the income tax authorities.
Frequently asked questions