Eligibility and Minimum Members Required
Under the Societies Registration Act, 1860, a society can be formed by seven or more persons who associate themselves for a lawful purpose. In some states the minimum has been amended, but the central Act and most state rules still require seven members. The members must be competent to contract, meaning they are of majority age and of sound mind, and they can be individuals or registered entities such as companies or other societies.
For a society to be registered in Asansol, the members must share a common purpose that falls within the lawful objects listed in Section 20 of the Act, such as promotion of science, literature, fine arts, instruction, diffusion of useful knowledge, charity, and public health. The purpose must not be for profit distribution among members, because the defining feature of a society is its non-profit character. Any surplus income must be applied to the objects of the society.
The members who sign the memorandum become the first governing body members and are responsible for the initial registration. It is important to choose committed individuals as founding members, because they will form the first managing committee and set the governance tone. Adding or removing members later follows the procedure in the rules and regulations of the society.
Drafting the Memorandum of Association
The memorandum of association (MOA) is the primary constitutive document of the society. It must state the name of the society, which should not be identical to an existing society and should not suggest patronage by the government, the registered office address, the objects for which the society is established, the names, addresses, and occupations of the members of the governing body, and the names of the founders.
The objects clause is scrutinised closely, because it defines the scope of permissible activities and is the basis for tax exemption and grant eligibility. The objects must be specific, lawful, and non-profit. A society in Asansol formed for educational purposes, for example, should detail the kinds of educational activities it intends to undertake. Vague objects lead to difficulties in obtaining 12A and 80G benefits and in opening bank accounts.
The MOA must be signed by the founding members in the presence of a witness, and each signature must be notarised or attested. The document is printed on non-judicial stamp paper as required by the state stamp law. Accurate drafting is essential because amendments to the MOA later require a general body resolution and fresh registration with the Registrar, which is time-consuming.
Framing the Rules and Regulations
The rules and regulations, also called the bye-laws, govern the internal functioning of the society. They cover the composition and election of the managing committee, the tenure of office bearers, the frequency of meetings, the quorum, the membership fees, the admission and termination of members, the financial year, the audit of accounts, the procedure for amending the rules, and the dissolution clause.
For societies in Asansol, the rules should be drafted to balance flexibility with accountability. The committee structure should define roles such as president, secretary, and treasurer, and the powers and duties of each. The financial rules must specify how funds are received, banked, and spent, and require at least two joint signatories for cheques. A dissolution clause must provide that on dissolution the assets, after clearing liabilities, will be transferred to another society with similar objects, not distributed among members.
The rules must be consistent with the MOA and the Societies Registration Act. Any conflict between the rules and the Act is resolved in favour of the Act. Well-drafted rules prevent disputes among members, ensure smooth elections, and make the society attractive to donors and grant agencies who require transparent governance.
Registration with the Registrar of Societies
The application for registration is filed with the Registrar of Societies having jurisdiction over Asansol. The application must be accompanied by the MOA, the rules and regulations, a covering letter, the address proof of the registered office, identity proofs of the members, and the prescribed fee. In West Bengal, the registration is governed by the Societies Registration Act, 1860 as applicable, and the procedure is administered by the Registrar of Societies.
The Registrar scrutinises the documents to ensure the name is available, the objects are lawful, and the documents are properly stamped and signed. If satisfied, the Registrar issues a Certificate of Registration, which is the conclusive proof of the existence of the society. The certificate is typically issued within a few weeks, though the timeline depends on the completeness of the application and the workload of the office.
Once registered, the society must display its registration number on all communications and must file annual returns with the Registrar, including the list of managing committee members and the audited accounts. Failure to file returns can lead to the society being marked as defunct. For societies in Asansol, maintaining timely filings with the Registrar protects the legal status of the organisation.
PAN, Bank Account and Tax Exemption
After registration, the society must obtain a PAN in its own name, because it is a separate legal entity for tax purposes. If it will have employees, a TAN is also required for tax deduction at source. With the PAN, the certificate of registration, and a resolution of the managing committee, the society can open a bank account in Asansol.
Like trusts, societies engaged in charitable activities can apply for registration under Section 12AB and for approval under Section 80G of the Income Tax Act. The application is made to the jurisdictional Principal Commissioner and requires the registration certificate, the MOA and rules, the list of activities, and the audited accounts. The 12AB registration exempts the society income from tax, and 80G allows donors to claim a deduction.
For societies receiving foreign contributions, FCRA registration is mandatory before accepting such donations. The society must maintain a separate bank account for foreign funds and file annual returns with the Ministry of Home Affairs. These compliance layers are independent of the society registration and must be observed to avoid penalties and cancellation of registration.
Managing Committee and Annual Compliance
The managing committee is the executive body of the society, elected by the general body. It is responsible for day-to-day management, financial decisions, and statutory compliance. The committee must hold meetings, record minutes, and present an annual report and audited accounts to the general body. The tenure of the committee and the election procedure are defined in the rules.
Annual compliance includes filing the audited accounts and the list of office bearers with the Registrar of Societies, filing the income tax return and the audit report in Form 10B, and where applicable, the FCRA annual return. The society must also conduct general body meetings at the frequency prescribed in the rules, typically at least once a year, and maintain attendance records.
Non-compliance is the most common reason societies lose their registration or tax-exempt status. For societies in Asansol, having a legal advisor handle annual filings and meeting formalities ensures continuity. A small investment in compliance support protects the society from being struck off and preserves its eligibility for grants and donations.
How Advocate Anurag Gupta Registers Societies in Asansol
Advocate Anurag Gupta helps groups in Asansol register societies under the Societies Registration Act from start to finish. He advises on the suitability of a society compared to a trust or Section 8 company, drafts the memorandum of association and the rules and regulations with clear objects and sound governance provisions, and ensures the documents are properly stamped and notarised.
He files the registration application with the Registrar of Societies, follows up on scrutiny queries, and obtains the Certificate of Registration. He then assists with obtaining the PAN and TAN, opening the bank account, and preparing the applications for 12AB and 80G registration. For societies planning to receive foreign funds, he advises on FCRA compliance.
He also provides annual compliance support, including filing returns with the Registrar, preparing audit reports, and maintaining statutory records. For a free consultation about registering and running a society in Asansol, call Advocate Anurag Gupta to discuss your objectives and the legal steps to give your group a recognised, compliant identity.