We the following persons being desirous of forming ourselves into a society under the Societies Registration Act 1860 have subscribed our names to this memorandum.
Such a declaration should be signed by the seven or more persons associated with the society and it should be dated.
Drafting of Rules and Regulations:-
The rules and regulations of the society are framed to guide the members of the governing body or the persons entrusted with the management of the society to regulate the functions of the society and for its internal management.
The rules help the management in carrying out the objects of the NGO.
They are binding on the members of the society as well. Rules which are inconsistent with the provisions of the Act are inoperative although registered with the Registrar of Societies.
A Society is perceived to be an association of persons or a body of individuals.
Such a body with a definite name and objective may be a registered one or unregistered one. The legal character is acquired only after registration (incorporation) of the association of persons under any of the applicable laws. In case of public charitable trusts, whether in relation to movable property of any immovable property and whether created under a will or inter vivos, is optional but desirable. However, in case of a charitable trust or trust registration in relation to immovable property, for claiming exemption u/s 11 of the Income Tax Act, it is essential that the instrument of trust is duly registered.
An NGO may be formed as a society or you may apply for society registration. A society may be defined as a company or an association of persons (generally unincorporated) united together by mutual consent to deliberate, determine and act jointly for the same common purpose. As per the Societies Registration Act, 1860, (see Annexure 2, VI), a society can be formed by minimum seven (or more) persons, eligible to enter into a contract, for any of the following purposes:
1.) Grant of Charitable assistance;
2.) Creation of military orphan funds;
3.) Promotion of science, literature or the fine arts; instruction and diffusion of useful
knowledge, diffusion of political education, foundation or maintenance of libraries or reading rooms for general use of the members of the public, public museums and galleries of paintings and other work of art, collections of natural history, mechanical and philosophical inventions, instruments or designs Besides, the State Governments are empowered to add more objects to the above list. The chief advantage of forming society is that it gives a corporate appearance to the organization, and provides greater flexibility as it is easier to amend the memorandum and bye-laws of the society that in case of a trust, terms of which are strictly manifested in the trust deed. However, the formation of society requires more procedural formalities than in case of trust.