Cooperative Society

Registration of Cooperative Society in India

A cooperative society is a legal entity formed by individuals with common interests to achieve economic, social, and cultural goals through mutual assistance. The cooperative movement aims to promote self-help and self-reliance among members. In India, the registration of cooperative societies is governed by the Cooperative Societies Act of each state, along with the Multi-State Cooperative Societies Act for societies operating in multiple states.

Documentation Requirements for Registration

To register a cooperative society in India, the following documents are typically required:

1. Application for Registration

• Description: A formal application addressed to the Registrar of Cooperative Societies.
• Content: Must include the name of the society, its objectives, and details of the governing body.
• Description: The rules governing the functioning of the cooperative society.
• Content: Should include:
  • Name and address of the society.
  • Objectives and purpose of the society.
  • Membership criteria.
  • Rights and duties of members.
  • Rules for meetings, elections, and management.
  • Procedure for the dissolution of the society.
  • Description: Verification documents for all founding members.
  • Documents: Acceptable proofs include:
    • PAN card
    • Aadhaar card
    • Voter ID
    • Passport
  • Description: Proof of residential addresses of all founding members.
  • Documents: Acceptable documents include:
    • Utility bills (electricity, water, etc.)
    • Bank statement
    • Rent agreement or property deed
  • Description: A list of the founding members along with their details.
  • Content: Should include names, addresses, and contact information of all members.
  • Description: If the cooperative society is formed within another society’s jurisdiction, a No Objection Certificate (NOC) may be required.
  • Description: A resolution passed by the founding members to establish the cooperative society.
  • Content: Should indicate the intention to form a cooperative society and agree on the objectives.
  • Description: A statement from a bank confirming that the initial deposit amount has been made by the members.
  • Details: The required minimum deposit amount may vary by state.
  • Description: Fees payable for the registration of the cooperative society as specified by the respective state’s cooperative society laws.

2. Proposed Bye-laws

3. Identity Proof of Members

4. Address Proof of Members

5. List of Members

6. NOC from the Society

7. Resolution for Formation of the Society

8. Bank Account Statement

9. Payment of Registration Fees

Steps for Registration

1. Draft Bye-laws: Prepare the bye-laws according to the requirements of the Cooperative Societies Act.
2. Collect Documents: Gather all necessary documents and proofs from the founding members.
3. Submit Application: File the application along with the required documents to the Registrar of Cooperative Societies in the respective state.
4. Verification: The Registrar will verify the application and documents submitted.
5. Registration Certificate: Upon successful verification, the Registrar issues a registration certificate, confirming the establishment of the cooperative society.

Benefits of Cooperative Society

1. Limited Liability:

• Members enjoy limited liability, meaning their personal assets are protected from the society’s debts.
• Cooperative societies operate on the principle of one member, one vote, ensuring equal participation in decision-making regardless of the investment made by members.
• Members can pool resources to enhance bargaining power for better pricing, credit, and market access.
• Profits are distributed among members based on their participation or usage of services rather than investment, promoting fairness.
• Cooperative societies can access government grants, subsidies, and loans, which are often more favorable than conventional loans.
• Many cooperatives focus on community development, providing social welfare, employment opportunities, and support for marginalized groups.
• Certain cooperatives may qualify for tax exemptions or reduced tax rates, enhancing financial sustainability.
• The cooperative model encourages members to work together to meet their needs, fostering self-reliance and mutual support.
• Cooperatives are designed to continue functioning even if individual members change, ensuring long-term stability.
• Cooperative societies provide a platform for members to engage in entrepreneurial activities collectively, fostering innovation and economic growth.

2. Democratic Management:

3. Collective Bargaining Power:

4. Profit Distribution:

5. Access to Financial Assistance:

6. Social Welfare:

7. Tax Benefits:

8. Encouragement of Self-Help:

9. Stability and Continuity:

10. Promotion of Entrepreneurship:

Registering a cooperative society in India involves fulfilling specific documentation requirements, which aim to promote transparency and accountability. The benefits of forming a cooperative society extend beyond individual gains to foster collective growth, stability, and social welfare among members. Engaging with legal professionals or cooperative experts can streamline the registration process and help establish a robust framework for the cooperative society's operations.