Registration enables an NGO to be a transparent in its operations to the Government, Donors, to its members and to its urgent community. A Social Service organization or an NGO can be registered as a Society or as a trust -or- also as non-profit company. An NGO cannot say it is registered under a statutory authority merely by applying far registration, and thereafter tiling the prescribed documents. The qualification can be claimed only when the name of the applicant NGO is formally entered in the prescribed register by the Registrar.
Registration of a Society
The Societies Registration Act, 1860 is ‘a Central Act with State modifications (e.g. Karnataka Societies registration Ad, 1960, Tamil Nadu Societies Registration Act, 1975). Requirements vary from State to State. Mostly, an NGO must file the following with the Registrar of .society:
1. A copy of the Memorandum of Association duly signed by seven or more persons,
2. A copy of the Rules and Regulations of the society certified as correct by not less than three members of the governing body.
Prescribed fee is to be paid for registration. Pursuant to the tiling of these documents and payment of fees, the Registrar ~ certifies under his hand that the society is registered under the Act.
Requirements: Any seven or more’ persons associated for any literary, scientific or charitable purpose (or-for other specified purposes). The Memorandum of Association must contain the following:
1. The name of the society.
2. The object of the society.
The name, address and occupations of the governors, council directors, committee or other governing body to whom by rules of the society the management of its affairs is entrust
The following Societies may be registered under the Act:
1. Charitable Society.
2. The military orphan funds or societies .established at presidencies of India.
3. Societies established for:-
a. The promotion of science, literature or the fine arts
b. The instruction, the diffusion of useful knowledge or the diffusion of political education.
c. The foundation or maintenance of libraries or read’ rooms for general use among the Members or open to the public or public museums and galleries ” paintings and other works of Art collection of natural; history, mechanical and philosophical inventions, instruments or designs.
Guidelines for registration of a society in Delhi have been provided under the Societies Registration Act, 1860 as applicable to the NCT of Delhi”.
Status of a registered. society: A registered society is viewed as an independent juridical ‘person’., It is different people who form it. The registered society can-
1. Purchase and hold property.
2. File cases. ‘
3. It has perpetual succession.
4. It can get exemption from. income tax.
5, It has limited liability
6. Any property held can pass from one generation to another without having to pay’ any transfer fees or taxes and without any’ cumbersome documentation.
7. The properties of an incorporated body can be more easily protected from rival claimants and resulting litigations.
Property which is vested in the members of an unregistered society becomes “property belonging to the society” after registration, and there is no transfer of ownership.
.A society registered in India and having all of its members as foreigners is still an ‘Indian’ society and governed by Indian. It is Conversely when registered outside- and all members are Indian then the society is a foreign society.
Unregistered Society
An unregistered society is not recognized as an independent judicial person under law. Therefore, it does not enjoy the benefits. Failure to register the institution gives it no legal face and only the trustees in charge of the fund have a legal status. A promissory note executed in favour of the institution in this event is void and no suit can be instituted to enforce it on behalf of the institution
.
Limited Liability
A registered society has limited liability. (Section 8 of Societies !{registration Act, 1860 .’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.
Prashant Tyagi (Intern)
LEXIS & COMPANY
10/06/2021
