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Any seven or more persons associated for any social and political pupose like literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with Registrar of Joint-stock Companies from themselves into a society under this Act.

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Advantages:

1. Easy Formation:

Compared to the formation of a company, formation of a cooperative society is easy. Any ten adult persons can voluntarily form themselves into an association and get it registered with the Registrar of Co-operatives. Formation of a cooperative society also does not involve long and complicated legal formalities.

2. Limited Liability:

Like company form of ownership, the liability of members is limited to the extent of their capital in the cooperative societies.

3. Perpetual Existence:

A cooperative society has a separate legal entity. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society.

4. Social Service:

The basic philosophy of cooperatives is self-help and mutual help. Thus, cooperatives foster fellow feeling among their members and inculcate moral values in them for a better living.

5. Open Membership:

The membership of cooperative societies is open to all irrespective of caste, colour, creed and economic status. There is no limit on maximum members.

6. Tax Advantage:

Unlike other three forms of business ownership, a co­operative society is exempted from income-tax and surcharge on its earnings up to a certain limit. Besides, it is also exempted from stamp duty and registration fee.

7. State Assistance:

Government has adopted cooperatives as an effective instrument of socio-economic change. Hence, the Government offers a number of grants, loans and financial assistance to the cooperative societies – to make their working more effective.

8. Democratic Management:

The management of cooperative society is entrusted to the managing committee duly elected by the members on the basis of ‘one-member one -vote’ irrespective of the number of shares held by them. The proxy is not allowed in cooperative societies. Thus, the management in cooperatives is democratic.

1-2 MONTHS

 

1. MEMORANDUM OF ASSOCIATION IN DUPLICATE

2. RULES AND REGULATIONS IN DUPLICATE

3. AFFIDAVIT NO. 1 REGARDING OWNERSHIP AND NOC FOR THE REGISTERED OFFICE OF THE SOCIETY (ATTESTED BY NOTARY WITH PROPER REGISTRATION NO. OF NOTARY)

4. AFFIDAVIT NO. 2 REGARDING DESIROUS PERSONS NOT RELATED TO EACH OTHER AND NAME OF SOCIETY IS NOT IDENTICAL OR REASSEMBLES TO ANY OTHER REGISTERED/NON REGISTERED SOCIETY (ATTESTED BY NOTARY WITH PROPER REGISTRATION NO. OF NOTARY)

5. RESIDENTIAL CUM ID PROOFS OF ALL DESIROUS PERSONS OF SOCIETY (ATTESTED BY A GAZETTED OFFICER WITH PROPER SEAL)

6. OWNERSHIP PROOF OF REGISTERED OFFICE OF THE SOCIETY WITH ID PROOF OF OWNER. 
 
(i) ELECTRICITY BILL  OR

(ii) WATER BILL   OR

(iii) HOUSE TAX RECEIPT  OR

(iv) PROPERTY REGISTERD DOCUMENT

7. IN CASE OF GOVT.BODY/SEMI GOVT. BODY/UNDERTAKING, NOC FROM THE EMPLOYER.

8. APPLICATION FORM

 

SOCIETY REGISTRATION CERTIFICATE

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