Society is a group of different individuals coming together for the common purpose of serving the community. These societies are formed primarily for promoting charitable activities like sports, art, education, music and many such alike activities to the underprivileged people.
Such Society needs to be registered under The Society Registration Act 1986. The mentioned Act was levied in order to make these societies follow all the legal stipulations. Most of the states in India have accepted the Act with or without minor amendments.
We help our clients to register their respective societies within the rules and amendments accepted by the jurisdiction of the state under The Society Registration Act, 1986.
- PAN Card of all the society members.
- Memorandum of Association, including objectives of the society and all the details of members of the society.
- Articles of Association, which must contain all the rules and regulations of the society pertaining to operations and the membership of the society.
- Proof of registered office along with the NOC from the landlord.
- A covering letter with all the objectives and the purpose of society.
- Declaration by the appointed president of the society.
- Residence proof of all the members of society. Any of the following documents need to be furnished as proof of residence:
- Aadhar Card
- Driving License
- Bank Account
- All the documents must be submitted to Registrar of Societies along with the requisite fees.
- Documentation is not that complicated as it seems to be, we assist all our clients with end to end process of registration of Society.
- Selection of Name :
The first step is to select the name of the society that you intend to form, however one must keep in mind that the name you are selecting must not resemble any of the other registered society.
- Board Decision
- Executive Committee of Society (President, Secretary, Vice President, Treasurer)
- General Body of Society (All other members)
- MOA of Society – The next step is to create MOA (Memorandum of Association), duly signed by every member of society. Also, the same must be attested either by the gazetted officer or any other person of the same capacity with official stamping and address. It contains the operations & objective of society.
- Bye Laws of Society – It contains responsibilities of the boards and detailed term & conditions related to functioning of society. With member qualifications to their personal details, various other things are mentioned here. Overall, we have covered the working of society in this service domain.
- Minimum 7 Members of Different states should be required for applying Society Registration.
- Bye laws of the societies covers various major powers like Selling property of society, Dissolution of society, Assets & liability settlement, Fund usability. It is the most important document of the society.
- Society must file income tax return & maintain book keeping of accounts. Society must maintain Register for Donation, AGM Resolution, and Members Register annually.
- Registered Society can apply for 12A or 80G registration of income tax exemption. Otherwise society has to pay income tax according to the slab rates of same FY.
- There is no maximum limit of members in the society.
- Trust Registration & Section 8 Co. Registrations are the other options for starting an NGO in India.
- Shop & Establishment or Labour License is mandatory after registering a society in India. (If you employ people in society then its applicable)
- The documents clearly stating all the bye-laws related to objectives, closure and dissolution of society. It must clearly state that after settling all the debts and liabilities, the rest of the funds will not be distributed amongst the members of the society. The funds must immediately be transferred to some other society operating under the same work model.
If an NGO is registered under 80G then the donor can seek tax exemption on their income tax. It is a kind of certificate issued by Commissioner to NGO’s who are actually working for the society. By verifying many documents & activities of NGO, commissioner issues this certificate. Here are the benefits of registering under the same:
- Deduction from taxable income for donors if he/ she donated to registered NGOs who have 80G Certificates.
- Such benefit can attract more donors that in turn can help to run NGO in a better way.
These exemptions can only be availed by charitable or religious trusts, Societies and Section 8 companies. No family or private trust can avail such exemption.
If a Society is registered under 12A then company can seek tax exemption on their income tax during the year. It is a one-time registration issued by Income tax commissioner of zonal area. It is a very important document if you are planning for Non-Profit NGO in India.
Here are some of the benefits of 12A registration:
- Complete Income Tax exemption for almost lifetime of a Non-Profit NGO
- It’s also helps in taking FCRA Approval or Foreign fundings.
- Helps in taking grants from Government and other alike bodies.
Registration process of 12A Approval for Society
- Form 10A has to be filed.
- Below mentioned documents needs to be attached with duly filled 10A:
- Registration Certificate of NGO
- PAN Card of NGO
- Name, Address and PAN details of the Members of the Trust
- Complete Memorandum of Association
- NOC from the landlord, if applicable
- Proof of welfare activities carried out in the last 3 years
- List of donors along with their PAN card details
- Society can apply for both (80G & 12A) exemptions immediately after the NGO registration. One can either file these exemptions together or else can file separately as well. Both the applications must be submitted to Income Tax Commissioner who has jurisdiction over your NGO.
- It is a one-time process and then Commissioner of Income tax reviews the same thoroughly. He may ask for additional documents or information to complete the formalities. The process takes around 3 to 4 months.
- Commissioner has power to reject the application over non-satisfaction of documents, thus we recommend seeking the expert services provided by our professionals to ensure that you avail comprehensive tax exemptions without any delay.
- We help you in the entire process of Society registration with assurance of hassle-free proceedings.
- Having us on board for your Society registration will help you to complete all the formalities in much lesser time.
- We will assist you on FCRA Approval from day 1, as it is the most crucial approval for Foreign fundings and grants.