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A society is a group formed for non-profit purposes like education, culture, or social welfare. This blog explains the process of online society registration in Rajasthan, required documents, and benefits, including property ownership, legal rights, and tax exemptions, under the Societies Registration Act, of 1860.
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WHAT IS SOCIETY?
In simple words, a society is a group of people who come together to run a business or an organization for the benefit of its members. In Rajasthan, they need to register to make society official with the government. By submitting basic documents to the authorities, the society gets legal identification, allowing it to operate smoothly and fairly once it registers.
PURPOSES OF SOCIETIES
According to the Societies Registration Act, of 1860, a society can be formed for many good reasons, such as helping others, caring for the environment, supporting education, and promoting art. However, a society cannot be formed to earn profit or make money for its members. The society can run businesses as long as they support the society, not for profit.
ELIGIBILITY TO REGISTER FOR SOCIETY IN RAJASTHAN
• Minimum Members: A society in Rajasthan should have at least seven members to be eligible for registration.
• Governing Body: The society must have a governing body consisting of individuals who will be responsible for managing the society’s affairs. The governing body typically includes positions such as President, Secretary, Treasurer, etc.
• Non-profit Objectives: The society’s objectives must be non-profit in nature, aiming to promote social, cultural, educational, charitable, or philanthropic activities. The society should not operate for the profit or financial gain of its members.
• Registered Office: The society should have a registered office address in Rajasthan. This address will be used for official communications, and documentary proof of the address must be provided during the registration process.
• No Discrimination: The society’s objectives and activities should not discriminate based on religion, caste, gender, or any other discriminatory factor.
• Memorandum of Association (MOA) and Rules and Regulations (Bylaws): The society must prepare an MOA and Bylaws that clearly state the society’s objectives, rules for its functioning, and the roles and responsibilities of its members.
• Affidavits and Declarations: Each member of the proposed governing body must submit affidavits declaring their non-conviction in any criminal case related to moral turpitude (an immoral behavior that goes against the rules). Additionally, they need to submit declarations stating that they have not been involved with any other society that was dissolved or declared illegal.
• Registration Fee: The prescribed registration fee should be paid along with the application for society registration. The fee amount may vary depending on the type of society.
WHAT DOCUMENTS ARE REQUIRED WHEN REGISTER FOR SOCIETY?
The following documents are required for society registration in Rajasthan:
• Memorandum of Association (MOA): This outlines the society’s objectives and purpose.
• Rules and Regulations (Bylaws): Includes details about the society’s internal procedures, membership, meetings, elections, and financial management.
• Affidavits: Governing body members must submit affidavits confirming no criminal convictions related to moral turpitude.
• Declarations: Governing body members must declare that they have not been involved with any previously dissolved or illegal societies.
• Address Proof: Proof of the society’s registered office, such as an electricity bill, lease agreement, or property document.
• Covering Letter: A formal letter to the Registrar of Societies requesting registration and explaining the society’s objectives and activities.
• List of Governing Body Members: A complete list of governing body members with their names, addresses, and signatures.
• Registration Fee: Payment of the applicable registration fee, which may vary based on the type and location of the society.
PROCESS OF SOCIETY REGISTRATION IN RAJASTHAN
Steps for Society Registration in Rajasthan:
• Form a Governing Body: Gather at least seven individuals to form the governing body responsible for managing the society’s affairs.
• Choose a Name: Select a unique and appropriate name for the society that complies with legal requirements and isn’t similar to existing societies.
• Prepare Memorandum of Association (MOA): Draft the MOA, outlining the objectives and purpose of the society.
• Prepare Rules and Regulations (Bylaws): Create bylaws that define the society’s internal operations, membership, meetings, and financial management.
• Hold a Meeting: Conduct a meeting with all governing body members to discuss and finalize the MOA and bylaws.
• Sign the MOA and Bylaws: Have all governing body members sign the finalized MOA and bylaws to confirm their agreement.
• Submit Affidavits and Declarations: Each member must submit an affidavit of non-conviction in criminal cases and a declaration confirming they haven’t been part of any dissolved or illegal society.
• Prepare the Application: Compile all required documents, including the MOA, bylaws, affidavits, declarations, address proof, and list of governing body members.
• Submit the Application Online: Register on the Rajasthan SSO portal, create a user account, and submit the application and required documents.
• Pay the Registration Fee: Pay the prescribed fee, which varies based on the society type and location.
• Verification and Approval: The Registrar will verify the submitted documents. Upon approval, the society will be registered.
• Receive Certificate of Registration: After approval, the Registrar will issue the Certificate of Registration, confirming the society’s legal status.
KEY POINTS OF SOCIETIES
ESTABLISHMENT OF A SOCIETY
According to Section 13, a society can be formed by one or more people by applying to the authorities. The application must include:
After the establishment of society is completed the authorities must issues:
1. A certificate of establishment is an official document that includes:
• The name and the unique establishment number, which helps to identify it.
• The date and time when the society was officially registered and became a legal entity.
2. A certified copy of the records contained in the establishment application filed with the registrar under section 13 means:
• The main set of rules or the “mission statement” that explains what the society is all about and how it operates.
• The detailed guidelines or instructions that tell how the society will be run on a day-to-day basis, like how decisions are made or how members are chosen.
• This document lists the names of the key people in charge (the directors) and the official address where the society can be contacted.
• This part includes the names and contact details of the people who are setting up the society.
• This means announcing publicly that the society has been officially registered and is now a legal entity.
MODIFICATION OF RULES AND REGULATIONS:
1. A society can change its rules by submitting an application to the registrar and asking for approval to update its constitution.
• It can change its name or change what it’s set up to do.
Note: A society should not send a request to the registrar to change its rules unless:
• The proposed change must be approved by a special vote.
• If the society is changing its name. The new name must be approved and reserved as required by law.
Once a society changes its rules, the registrar must
1. Provide the society with an official copy of the updated rules.
2. If the change is in the society name then the registrar must:
• Provide a certificate showing the new name and the details of the change.
• Give the society a copy of the certificate.
• Publicly announce the name change.
EFFECT WHEN NAME CHANGE
A proposed change to the rules becomes official as soon as the application to change the rules is submitted to the registrar.
Changing the society’s name doesn’t affect its rights or responsibilities, nor does it make any ongoing legal cases invalid. Any legal cases that were started before or are still ongoing can continue with the society’s new name.
MODIFICATION OF BYLAWS
A society can change its bylaws by applying to the registrar, but it can only do so once the proposed change has been approved by a special vote.
EFFECTS OF CHANGE TO BYLAWS
A proposed change to the bylaws becomes official as soon as the application to change them is submitted to the registrar.
After a society changes its bylaws, the registrar must provide the society with an official copy of the updated bylaws.
IMPORTANCE OF SOCIETY ACT
1. Under the Society Act of 1860, registering a society offers several benefits that help the society in many ways:
• It gives the society official recognition under the law.
• It allows the society to legally own and manage its properties.
• Registering the society is required to open a bank account in the society’s name.
• This gives society recognition everywhere, including with all authorities and organizations.
• A society can only get tax benefits and approvals from the income tax department after it has registered under the Society Act.
CONCLUSION
Registering a society in Rajasthan is crucial for legal recognition and smooth operation. It allows societies to own property, open bank accounts, and access government benefits. With the right business consultancy, societies can navigate the registration process efficiently, ensuring they are legally recognized and supported in achieving their goals.
CA Jitendra Agarwal, a Chartered Accountant, is an experienced Income Tax Advisor with a proven track record in tax planning and compliance.
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