Our experts guide you in choosing the most suitable business format – trust, society, or section 8 company – based on your activities. We handle complete society registration in Gujarat, MOA drafting, rules & regulations, and 12AA/80G certificates.
A society is an association of people who come together to do charitable, social, literary, scientific, or commercial work. Societies are established in terms of the Societies Registration Act 1860 and societies are usually meant for public welfare or knowledge sharing or for the management of residential or commercial complexes.
While societies are often associated with charitable causes, they can also be created for commercial purposes. For instance, a group of shop owners in a mall or complex may form a society for maintenance, security, and shared expenses.
Society registration is the legal process of forming a non-profit organization under the Societies Registration Act, 1860. A society is a voluntary association of individuals united for common purposes such as charitable, literary, scientific, or social welfare activities. When registered, a society becomes a separate legal entity with perpetual succession, capable of owning property, entering contracts, and conducting business in its own name.
Society can be formed for following purposes:
The Memorandum of Association is charter document of society which contains the name of the society, registered office address of the society, the area of its activities, and the objectives for which the society is established. The Memorandum of Association of the society must be signed by every establishing member, witness by Gazetted Officer, Notary Public with their official stamping and complete address. The MOA shall also consist the names, addresses, and occupations of the governors, council, directors, committee, or other governing body to whom, by the rules of the society, the management of its affairs is entrusted. A copy of the rules and regulations of the society, certified to be a correct copy by not less than three of the members of the governing body, shall be filed with the memorandum of association.
Generally, the society which carried out the 100% charitable activities do not required to pay income tax subject to certain terms ans conditions.
A Society can acquire 12A certificate from the Income Tax Department. Any society acquiring such a certificate is exempted to pay income tax for the entire lifetime on its surplus income. Also, it must obtain 80G certificate. This certificate allows donors, that is persons or organizations making donations to an 80G certified NGO, to avail deduction from their respective incomes. Thus, such a deduction is given to the donors under section 80G of the Income Tax Act. By availing this certificates, society can attract more doners because of income tax benefits to donors.
