Society Registration Act, 1860 is a central act for registering not-for-profit organizations. Almost all the states in India have adopted (with modifications, if any) the central Act for creating state-level authorities for registering various types of not-for-profit entities..According to the act, and seven persons who subscribe to the Memorandum of Association (MOA) can register a society.
The memorandum should include names of the society, its objectives, its names, addresses and occupations of the members subscribing to it as well as the first governing body to be constituted on registration.
A society is formed when some people come together.
They have some common purpose and want to do something. The purpose must be legal. Mostly the purpose should be to do something useful for others. A society should generally not get into profit-making activities. But if it does, then the profit must be used for some charitable purpose. What is a charitable purpose? Mostly it means helping the poor, sick or the helpless. Philanthropy, altruism, humanitarianism are similar concepts. Charitable purpose of your work and charitable approach to the work can be two different things. Most laws are concerned with the purpose of your work. You are free to choose the approach – which may be charitable, developmental or some other. A society must be registered for it to enjoy full legal status. You are Ngo registered when your name is entered in a register4 . The person who enters your name is called a registrar. This sounds very simple. However, you must meet some requirements before you can be registered. Requirements vary from state to state. Mostly, you must file a memorandum of association and your by laws. You must also deposit a fee. Registration (as a concept) probably started thousands of years ago in ancient Egypt or Greece. It is mostly done by Government agencies.
Registration is sometimes viewed as a status symbol. The Society Registration Act was passed to improve the ‘legal condition’ of societies.
A registered society is viewed as an independent ‘person’. It is different from the people who form it. This means:
1.) It can purchase and hold property.
2.) It can file legal cases.
3.) It has perpetual succession.
4.) It can get the exemption from income tax.
5.) It has limited liability.
A registered society has limited liability. ‘Limited liability’ means that the liability of the society is limited to assets of the society. The liability does not extend to personal assets of its members or Governing Body. Some societies have three or four types of members. T
These could be founder members, associate members, honorary members, normal members, etc.