A society can be attributed to the company or association of people (typically unaffiliated) who come together with the consent of each other to deliberate, decide, and act for the same common goal or as a volunteer group of people who come together to rule from and work together for a common good. A “society” was registered under the Societies Registration Act of 1860, and many state governments have approved it with or without modification. If you wish to create a society, you should be informed of the procedure needed for society registration. A society is defined as “an association of persons brought together by mutual consent to think, determine, and act together for some common purpose” under the Societies Registration Act of 1860. Societies are typically established to advance charity endeavors such as those related to religion, education, the arts, music, and sports, among others. In this article, we will discuss Society Registration in Madhya Pradesh.

Society Registration in Madhya Pradesh

Every society which needs to be operative in the state of Madhya Pradesh requires prior registration. The Society Registration is required in order to have complied with the legal compliances and thus holds the status of a legal entity in the state. It is mandatory from point of legal perspective. And thus holds vital importance to the entities obtaining it.   

Benefits of Society Registration in Madhya Pradesh

 Once a society is registered as a society, it acquires legal status.

1.      Receives certification and is granted statutory status, which is required for the wealth of society to have legal implications.

2.      A society that has been registered may create a current account in its own name.

3.      The Income Tax Act allows the society to register and receive permission.

4.      According to the Income Tax Act, a society is qualified for income tax exemption.

5.      After registration, a society acquires its own legal identity.

6.      A society retains the power to sign legal documents in its own name and lease, rent, buy, or sell the property.

7.      Constitutionally, registered society members are obligated in the same way as if they had signed the Memorandum.

8.      A registered society may bring legal action.

9.      All forums and government authorities view all registered societies as having legal recognition.

10.  Any debts or responsibilities are not directly owned by Society members. Unless a loan is taken out to fund profitable endeavors or the actions conducted are unlawful in nature.

Documents

The following are the documents needed for Society Registration in Madhya Pradesh:

·         A letter of request regarding the society to be registered under the Madhya Pradesh Society Registration Act, 1860, to the appropriate official.

·         Two copies of the Memorandum of Association, which must list the society’s name, objectives, members’ names, addresses, and professions in addition to the group’s governing body. Additionally, you need to provide a copy of the rules and regulations for your society, which must be verified as accurate by three other members.

·         No objection certification on paper with a stamp value of Rs. 2, along with documentation attesting to the owner of the society’s registered office, such as a general or leased power of attorney, an electricity bill, or a ration card. For a government apartment, an allotment letter is adequate.

Procedure to Register Society in Madhya Pradesh

 The Indian Society Registration Act, of 1860 makes it simple for businesses or even foreign nationals to establish a society for the purpose of society registration. The registration of societies is a problem for the state government and its competent officials. The Societies Registration Act, of 1860 should take effect after the society has been registered. The following techniques must be chosen for the society to manifest once the person who wants to start has decided on the name of the society and plans to produce a memorandum and rules and regulations:

1. Choosing a Name/Unique Name

When choosing a name for the registration of a society, it is essential to have a distinct name to register societies in the Indian Societies Act, as stated by the Societies Registration Act, 1860. It is important to understand that a similar name to the currently registered society will not be permitted. Additionally, names that are forbidden by other statutory restrictions cannot be registered. Furthermore, the proposed name must not imply that the State government or the Government of India is under any kind of protection or that the laws of the Emblems and Names Act, of 1950, are being violated. It is crucial that all of society’s members support the decision about the name of the organization.

2. Memorandum of Association (MOA)

The Memorandum of Association (MOA) is a legal document that represents and specifies a society’s continuity and operational goals, as per Section 2 of the Society Registration Act of 1860^[1]. It specifies the permissible extent of force and capability. The creation of this document, which is primarily needed for the receipt of products, requires a great deal of supervision. Each established member, a witness by a Gazette Officer, a Notary public, an Advocate, a Magistrate First Class, an Oath Commissioner, or a Chartered Accountant, with their official stamp and full address, must sign the Association of Memorandum and the rules and regulations of the society. The name of the society and its goals should be included in the memo. 

In addition to this, it contains information about the society’s members, including their names, occupations, titles, and addresses. For registration, the following papers must be completed, signed, and submitted, and the relevant paperwork must be affixed to the application form:

• Requesting social registration and supplying supporting letters with everyone who is currently a member’s signature.
• Along with a verified copy of the Society’s Memorandum of Association.
• A duplicate copy of the society’s rules and regulations that has been properly signed by all of the established members.
• The landlord’s No Objection Certificate (NOC) and address documentation for the society’s registered office is required.
• A declaration of the relationship between the clients is made in an affidavit by the society’s secretary or president.
• A brief meeting regarding the registration of the Society with the provision of some relevant documents.

3. Finance & Audit

The Society has received money and property from members or other people (through donations, etc.). The accomplishment of the goals for which society is designed involves resources and money. Governors who manage the funds are members of the regulating body. It is given that societies maintain accurate records, have they audited, present them to the membership at the annual meeting, and submit them to the registrar for evaluation. Every society should have an auditor properly audit its financial records once a year and create a balance sheet for it. The report from the auditor should include the precise date of the society’s commercial activity.

• The Bylaws of the Association (AOA)
• The following rules and regulations are part of the Articles of Association (AOA):
• Rules and ordinances that will be used to manage society’s operations and safeguard daily activities,
• It will include guidelines for carrying out society membership,
• It’s important to discuss the characteristics and regularity of their society.
• information on auditors,
• Details of the subscription, the general body description
• In the event of a disagreement between members of society,
• Techniques for terminating the membership
• It is important to mention society’s procedures for dismissal.

Conclusion

Obtaining Society Registration in Madhya Pradesh becomes cumbersome at some time with the procedure to follow and documentation submission with the business to concentrate on. Thus to experience the best Society Registration process in the state, register with Bizadvisors. They will surely make your work easy and convenient and also saves time. Saving time is an art and inventing that time in your business makes that whole thing more productive.

Read our article:Society Registration in Punjab: A Complete Overview