Cooperative Society registration

Cooperative Society Registration in Jharkhand- is the first step which you can take to build a progressive association and strengthen the weaker sections of our society. If you also want to establish such a society, then first gather a minimum of 10 members that share a mutual goal with you. Thereafter take the assistance of our professionals. We will help you at every step to ease the process of registration and suggest the right way of doing things to build strong foundations of your society.

Mutual assistance and service are the objectives as distinguished from the aim of the other forms of organization, which is primarily making of profit.It aims at encouraging self-help on the part of economically weaker sections of the society by looking after a truly cooperative society is the elimination of profit and provision of goods and services to members at cost.

Cooperative Societies want to help each other. So a cooperative is an institution founded on the mutual cooperation of its members. The cooperative movement is basically a movement of the poor. Cooperatives are formed to serve their members. Weaker layers of society can establish such organizations to protect themselves from exploitation by modern means of production and distribution.

Cooperatives are voluntary organizations of people who are mostly small-scale workers and producers. They are organized according to democratic methods under common leadership to improve their internal and business conditions and to raise capital.

The cooperative movement has made a significant contribution to rural development. A sense of brotherhood and a willingness to work together grew among the members of this community. In addition, there is a real sense of democracy among the people. Cooperative marketing agencies have done a lot to free themselves from the hands of moneylenders and protect them from exploitation by middlemen.

Cooperatives in India were established to improve conditions for farmers engaged in agriculture. When cooperatives started in India, the country’s farmers fell into a network of money lenders. Even after hard work, they did not achieve the full results of their hard work. In addition, domestically-made companies at that time were in bad shape. People associated with traditional crafts do not get fair prices and markets.

Benefits of Cooperative Societies:-
They sell cheap products because there are no advertising costs.

Account maintenance and management costs are minimal as members work on their own without payment.

It offers reasonable salaries and positions to its employees.

As a community service provider, he is not involved in black market trading or hoarding.

Shipments are made directly by the manufacturer, which reduces the middleman’s profit.

Working to fix the problems of Indian farmers so that they can get storage facilities, credits etc.

Profit sharing is distributed equally with a fixed amount, the rest is invested in social development activities.

Benefits to society.

Members can get easy loans from the government.

This creates a sense of cooperation among members.

Laws Applicable to Co-Operative Society

The Cooperative Societies Act, 1912 expanded the sphere of cooperation between its members and provided for supervision by central organization. A cooperative society, which has its object the promotion of the economic interests of its members in accordance with the co-operative principles may be registered with limited or unlimited liability by filing application to the registering authority with requisite documents to be submitted by them.

  • Co-operative Societies Act under which the same is registered whether it be under state Act or Cental Act.
  • Co-operative Societies rules made there under whether it be central or state rules
  • Bye-laws approved by the registrar at the time of registration and amendments made from time to time and approved by the registrar, these bye-laws have to be formed by the concerned members themselves and present it to the registration authority for its approval.
  • Notification and Orders by the concerned Government
*
  •  

Required Documents for register a Cooperative Society

Ensure to affix these documents during the register a Cooperative Society:

  • Submit PAN Card of all the members of your proposed society with the registration application.
  • Next, deposit the valid Residential proof of all the members including, Bank Statement, Driving License, Aadhaar Card, Utility Bill and Passport.
  • Prepare a Memorandum of Association that must contain these clauses and information:
  • The central objectives of your society for which it got established.
  • All details of members forming the society
  • The address of the registered office of your society.
  • A Cover Letter which clearly mentions about the objective or the purpose of your society. Ensure that every founding member of the society has signed the cover letter.
  • A copy of the Address Proof, where the registered office of your society will get located along with a NOC from the landlord if any.
  • Give a list of all the members of the governing body with their signatures.
  • The last and most essential document which you need to submit with the application is a declaration by the society’s president. He must confirm that he is willing and competent to hold the stated position.

The following steps have to be followed while forming a Co-operative society, they are

Step 1: Ten Individuals together who are desirous of forming a Society:-To form a society, law mandates that 10 members minimum must show intention to be part of the society having same aim and objective to be achieved through the society for their mutual benefit and thereby be desirous to be part of it.

Step 2: Provisional Committee to select Chief Promoter:- Once a group of individuals have a desire to form a society the next step should be there must be a provisional committee of which everyone is part of and all of them should by mutual consent or by majority whichever their prefer must choose a person who will be a chief promoter of the society which is going to be formed by them.

Step 3: A Name for the Society has to be selected:- Thereafter once a chief promoter is selected by set of individuals among them, they have to select a name for the co-operative society which they wish to form

Step 4: Application has to be made to the Registration Authority:-Once the name of the society is selected by the members then they have to make a application to the registration authority stating that they have a intention to form a society and the name of the society has to be given to the authority for its approval and registering authority has to confirm that name is in conformity with laws and issue a confirmation certificate to the members. Then when the members get their name approval from the authority it is valid for 3 months from the date of approval.

Step 5: entrance fees and share capital:-Thereafter once name approval comes from the concerned authority, the entrance fee and the share capital must be collected from the concerned prospective members to meet the statutory requirements under law and it can be prescribed by the members themselves or society act mandates certain fees to be paid by them.

Step 6: Bank Account:-Thereafter once the prescribed fee and share capital is collect from the prospective members, then as per the directions of the registering authority promoter has to open a bank account in the name of the society and deposit the said fees and share capital in that account and a certificate has to be obtained from the bank to that effect

Step 7: Application for registration:-Once the bank formalities are completed then the promoter has to apply for the society formation to the registration authority and it has to be accompanied with set of documents, they are

 Form No. A in quadruplicate signed by 90% of the promoter members

1. List of promoter members

2. Bank Certificate

3.  Detailed explanation of working of the society.

4.  Four copies of proposed bye-laws of the society.

5. Proof of payment of registration charges.

6. other documents such as affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted.

Step 8: Registrar has to acknowledge:- After the submission of the said documents has mentioned in step 7, the registrar of that municipal ward has to enter the particulars in the book called the “register of Application” which is generally specified in form B and give it a serial number to the application. Thereafter the registrar has to issue a receipt to that effect and give it to prospective members to know the status of the application when it is pending.

Then the registrar after perusal of the records submitted to him/her has to make a decision whether has to issue a certificate of registration or not and if there are any discrepancies noticed then he/she has to inform the members of the same and get it rectified if any.

Step 9: Registration:-Last step is that the registering authority after being satisfied with the documents meeting the legal requirements will notify the registration of the society in the official gazette mentioned by the state or central government and should issue the registration certificate of the society and give it to the members of the society.

FAQs

Qus:-How is equality maintained in cooperative society?

Merits of Co-operative Society (i) Equality in Votes Co-operative society is governed by the principle of ‘one man one vote’. Each member is entitled to equal voting rights irrespective of the amount of capital contributed by a member.

Qus:-How are profits distributed in a cooperative?

In a for-profit cooperative, shareholders own the business itself, but their direct financial interest is in the shares of stock that they own. Shares entitle their holder to a portion of corporate profits, distributed by the company in the form of stock dividends.

Qus:-How many people are required to form a cooperative society?

A minimum of ten members are required to form a cooperative society. The Co operative societies Act do not specify the maximum number of members for any co-operative society. However, after the formation of the society, the member may specify the maximum number of members.

Qus:-What if society is not registered?

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. A non-registered society may exist in fact but not in law. … An unregistered society cannot claim benefits under the Income-tax act.

You cannot copy content of this page