Society registration is a legal process in which a group of individuals comes together to form a society for a charitable, religious, literary, scientific, or any other purpose that is not-for-profit. It is registered under the Societies Registration Act, 1860.
Advantages of Society Registration:
- Limited Liability: Members of a society have limited liability, which means they are not personally liable for any debts or losses incurred by the society.
- Tax Exemption: Societies are eligible for tax exemptions and benefits under the Income Tax Act and the Foreign Contribution Regulation Act (FCRA).
- Credibility: Registered societies have legal recognition, which enhances their credibility among donors, partners, and stakeholders.
- Perpetual Existence: Societies have perpetual existence, which means they continue to exist even if the members change or the organization undergoes restructuring.
Disadvantages of Society Registration:
- Compliance Requirements: Societies are subject to various legal and regulatory compliance requirements, such as filing annual reports, conducting regular audits, and maintaining accurate financial records.
- Complex Registration Process: The registration process for a society can be complex and requires the submission of various legal documents, such as a memorandum of association and rules and regulations.
- Restriction on Activities: Societies are established for a specific purpose, and any activity outside the scope of the society’s objectives is not permitted.
Types of Societies:
- Charitable Society: A charitable society is established for promoting charitable activities, such as education, health, and poverty alleviation.
- Literary and Scientific Society: A literary and scientific society is established for promoting literary and scientific activities, such as research and publication of journals.
In summary, Society Registration is a legal process in which a group of individuals forms a society for a charitable, religious, literary, scientific, or any other purpose that is not-for-profit. The advantages of society registration include limited liability, tax exemption, credibility, and perpetual existence, while the disadvantages include compliance requirements, a complex registration process, and a restriction on activities. The types of societies include Charitable Society and Literary and Scientific Society.