Formation of an NGO as Co-operative Society
Cooperative Societies have been envisaged as welfare and charitable associations of people having a broad based membership and comparatively more democratic and transparent set up as compared to such set ups as public charitable trusts. The Registrar of Societies does not only his/her role in the registration of the societies but also as an arbitrator and receiver in case of any dispute among the members. It is legally required that the Registrar should be kept informed regarding change in the governing body and about the existing members (list of present members should reach to him/her annually). Any change in the name and objectives of the registered society should take place with the permission of Registrar’s office. In some states such as Uttar Pradesh it is a statutory requirement that the registration of the society should be renewed by every five years.
According to the provisions of Societies Registration Act, 1860, minimum seven or more adult persons can form a Society. For a national level Society eight persons from seven different states would be required as promoters. An authorised person from among the promoters must apply to concerning register with preferably three alternatives names of the proposal Society so as to avoid any inconvenience if the envisaged name has already been allotted to some other Society. Individuals (excluding minors but including foreigners), partnership firms, companies and registered societies are eligible to form a Society.
For a registration of a Society two documents are required, viz. Memorandum of Association and Rules and Regulations. The Memorandum should contain name, registered office, area of operation, objects, name of members of governing body and names of promoters. The Rules and Regulations should include all the provisions that would regulate functioning of the proposed Society; it comprise membership, powers and responsibilities of office-bearers, meetings, quorum of meetings, termination of membership, operation of bank account and financial year, procedure of dissolution or merger of Society if so required, and other general rules required and manage the society.
A well-drafted (if required help of a legal expert should be taken) Memorandum and Rules and Regulations of the proposed Society should be signed by all the promoters (The should make signature on all the pages of the documents) and witness and attested by Oath Commissioner/Notary Public/Gazetted officer/Advocate/Chartered Accountant/First Clean Magistrate. For the purpose of registration the following documents are required to be filed with the registration of Societies:
a. Covering letter signed by the authorized person.
b. Memorandum of Association, in duplicate.
c. Rules and Regulations/Bye-laws, in duplicate.
d. An affidavit of the President/Secretary on a non-judicial stamp paper of prescribed value, stating the relationship between the subscribers/ promoters, duly attested by an Oath Commissioner/Notary Public or First Class Magistrate.
e. Proof of registered office, rent receipt or no objection from the landlord.
f. Authority duty signed by all members of the managing committees.
g. Declaration by the members of the managing committee that the funds of the society shall be used only for the purpose of furthering the aims and objectives of the society.
If the registrar is satisfied with the documents filed, he than requires the applicant with documents filed, he then requires the applicant to deposit the registration fee, normally it is Rs. 50, payable in case or by demand draft. On completion of all the formalities the Registrar issues a certificate of al the formalities the Registrar issues a certificate of registration and copies of the Memorandum and Rules & Regulations certified in his hand