Key Features of a Society

• Non-Profit Objective: Societies are established with the primary goal of serving the public interest and promoting welfare activities, rather than generating profits for members.
• Membership-Based: Membership in a society is usually open to individuals or organizations that support its objectives. Members have voting rights and participate in decision-making processes.
• Governing Body: A society is governed by a managing committee or executive body elected by the members, which is responsible for overseeing its operations and ensuring compliance with its objectives.
• Legal Entity: A society is a legal entity with the capacity to own property, enter into contracts, and sue or be sued in its own name.

3. Advantages of Forming a Society

• Legal Recognition: Societies are recognized by law, providing them with a formal structure and credibility to operate and attract support from donors and government agencies.
• Limited Liability: Members are protected from personal liability for the society’s debts and obligations.
• Tax Benefits: Societies engaged in charitable activities may be eligible for tax exemptions and benefits under various sections of the Income Tax Act.
• Public Support: The structure of a society allows for broad community involvement and support, making it easier to mobilize resources and achieve its objectives.
• Continuity: The society continues to operate regardless of changes in membership or the death of members, ensuring long-term stability.

4. Disadvantages of a Society

• Complex Registration Process: The process of registering a society can be complex and may require compliance with specific legal and regulatory requirements.
• Ongoing Compliance: Societies are required to comply with various statutory requirements, including regular filings, meetings, and maintenance of records.
• Limited Profit Distribution: Societies cannot distribute profits among members, which may limit incentives for participation or investment.

Reason for Society Registration

• To support arts 
• Political education dissemination 
• To make a donation to a charitable trust 
• Promotion of literature and science 
• Establishing funds for military orphans 
• Building public museums 
• Construction of public galleries 
• Establishing libraries 
• Promotion, dissemination, or instruction of knowledge that is useful 
• Natural history museum collections 
• Assemblages of mechanical and philosophical designs, creations, or tools.

Documents Required for Online Society Registration

What Are The Essential Documents Required For Enrolling a Society In Tamilnadu?

Memorandum 

It is essential to mention some details in the memorandum, such as

• The society’s name.

• The object of the to-be-enrolled society

• The details of the committee members.

 By-Laws

According to the Act, the by-laws need to contain all the following details:

• The identification of society, like address,

• The activities of the society.

• Details of admission, eligibility, and withdrawal, including the elimination of membership.

• Information associated with office bearers, like election, appointment, recall, responsibilities, and removal.

• Financial details

• Details associated with internal matters of the settlement of internal disputes and dissolution and dissolution of the to-be-Enrolled society

• How the Committee and General Body meetings will be organized and how many times, etc.

Annual Returns

The following details need to be mentioned in the annual returns:

• A photocopy of the balance report and sheet, receipt, and expenditure account.

• Information about the members at the end of the fiscal year.

Accounts and registers

Here are the details regarding the accounts and registers that need to be governed by society:

• Receipt book.

• Cashbook.

• Ledger.

• Vouchers file.

• Register of members.

• Governing Committee Meeting Minute Book

• Annual General Body Meeting minute book.

• Monthly register of receipts & expenditures.

Supporting Documents

Here are some of the details that have to be submitted besides the annual returns:

• Special resolution.

• Replaced members in the committee/election of the executive committee.

• Change in membership.

• Form VIII.

Delay in Filing

If any of these documents are submitted with delay, the authorities often overlook them. Although a fee will be charged for submitting it after the specified time. The society needs to file additional documents if asked by the Registrar.

Fee Structure

The Enrollment fee in Tamilnadu is ₹2550. Society needs to pay both the fee and fine, which had to be paid through Demand Draft. 

Online Society Registration

The online society registration has to be completed in a step-by-step manner as described by the Act. The following requirements must be met in order for a society to be registered:

• Members: A state society must have at least seven members, and it must have at least eight members from at least eight distinct states (including one from Delhi) 
• Jurisdiction: Wherever the society’s registered office is located is the applicable jurisdiction. in front of the district registrar for that specific region. 
• Regulating Act: The Societies Registration Act of 1986 governs the Society registration process 
• Property management: Property management: The property of the registered society is owned in its name and may be sold in accordance with the conditions outlined in its byelaws. 
• Dissolution: In case of dissolution the registered society has to wind up all the debts and liabilities and should donate the remaining funds to other societies having a similar objective. The fun will never be shared among the members 
• Executive committee: It comprises of a president, secretary, treasurer, and a vice president 
• Annual Compliance: Societies are required to submit an annual list of the names, addresses, and jobs held by members of their managing committee to the Registrar of Societies.

Society Compliances Post Registration

Following society registration, a trust must take the following actions:

• Acquire a PAN card 
• Establish a bank account 
• Accounting and bookkeeping 
• Yearly IT filings 
• GST registration, if applicable; professional tax registration, if required 
• Observing the Registrar of Firm’s requirements – AGM resolution, financial information, and a member list must all be filed with the Registrar of Firms.

5. Steps to Form a Society

• Step 1: Define the Objectives and Name of the Society
  • Objectives: Clearly define the society’s objectives, which should focus on charitable, educational, religious, or social purposes.
  • Name: Choose a unique name for the society that reflects its objectives and is not similar to any existing registered society.
• Step 2: Prepare the Memorandum of Association (MOA) and Rules & Regulations
  • MOA: Draft the MOA, which outlines the society’s objectives, the names of the founding members, and the powers of the society.
  • Rules & Regulations: Prepare the society’s rules and regulations, detailing its governance structure, membership criteria, and operational procedures.
• Step 3: Assemble the Governing Body
  • Managing Committee: Form a managing committee or executive body consisting of at least seven members (the minimum number may vary depending on local regulations).
  • Office Bearers: Appoint office bearers such as the President, Secretary, and Treasurer, as required by the society’s rules.
• Step 4: File an Application for Registration
  • Documents Required: Submit the MOA, rules & regulations, details of the managing committee, identity proofs of members, and a registration application to the relevant authority (Registrar of Societies).
  • Registration Form: Complete and submit the registration form along with the required documents and application fee.
• Step 5: Obtain Registration Certificate
  • Certificate: Upon review and approval of the application, the Registrar of Societies will issue a registration certificate, officially recognizing the society.
• Step 6: Apply for PAN and TAN
  • Apply for the society’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
• Step 7: Open a Bank Account
  • Open a dedicated bank account in the society’s name to manage funds, donations, and other financial transactions.
• Step 8: Comply with Tax and Regulatory Requirements
  • Tax Exemptions: Apply for tax exemptions under sections such as 12AA and 80G of the Income Tax Act if applicable.

Annual Filings: Ensure regular compliance with annual filing requirements, including submitting financial statements and maintaining records of meetings and activities.