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cooperative society is a voluntary association that started with the aim of the service of its members. It is a form of business where individuals belonging to the same class join their hands for the promotion of their common goals.

Key Features of a Co-operative Society

A Co-operative Society possesses these characteristics:

Open Membership- when a minimum of 10 members with a common interest come together to form a society, then it is referred to as a Co-operative Society. Besides, the co-operative societies act, 1912 does not specify any maximum number of members, while the member may specify the maximum limit after the formation of the society.

  • Voluntary Collaboration- No Co-operative Society registration is possible without the volunteer efforts of members to build one. The members have access to enough freedom to join and leave the Co-operative Society at any time by providing a legal notice of the same.
  • A Separate Legal Entity- when a company registers under the Co-operative Societies Act, 1912 it becomes a separate legal entity. Thus, a Co-operative Society holds a limited liability of its members. Any instances like, insolvency, death, or lunacy of the member will not affect the Co-operative Societies. Also, members have the power to enter in an agreement with others to sell or purchase properties under its name.
  • Fosters Service Motive- unlike other types of organizations, the Co-operative Societies do not emphasize upon maximizing the profit; instead, its main objective is to fulfil the common interest of the members.
  • Democratic Management- Every Co-operative Society follows “All for each and each for all” agenda which hinders dictatorship rule. Such societies conduct an Annual General Meeting (AGM) every year to select ‘Board of Directors.’ Irrespective of how many shares a member holds, he only has a single vote.

Procedure for Co-operative Society Registration in India

1st Step- To form a Co-operative Society, it’s essential to find 10 individuals who share a common objective and desires to commence a Society.

2nd Step- The next thing to do is to form a Provisional Committee and elect a chief Promoter amidst them.

3rd Step- Then all the members must voluntarily select a name for the society.

4th Step- Now you need to apply to the Registration Authority for name reservation of your Co-operative Society. You must obtain a confirmation letter for the name reservation. Also, understand that the reserved name shall be valid for 3 months.

5th Step- Further, collect the entrance fees and share capital from all the prospective members of your society.

6th Step- Thereby open a bank account in the name of your Co-operative Society and deposit the collected entrance fees and share money in that account. Also, procure a certificate in that respect.

7th Step- You are almost done with the process of Co-operative Society registration. Now deposit the registration fees with the Reserve Bank of India and thereof obtain a receipt of 1challan.

8th Step- Submit the application for registration to the Registrar of Societies of the concerned municipal ward along with the necessary documents.

9th Step- Subsequent to your application, the Registrar will enter the particulars in his register in Form “B.” Thereby he will give you serial number and issue a receipt in acknowledgement of the same.

10th Step- Lastly, the Registrar notifies you about the registration of the Co-operative Society in the Official Gazette and thus issues you the certificate of registration.


Documents Required for registration of  Co-operative Societies

  • Submit PAN Card of all the members of your proposed society with the registration application.
  • Next, deposit the valid Residential proof of all the members including, Bank Statement, Driving License, Aadhaar Card, Utility Bill and Passport.
  • Prepare a Memorandum of Association [1]  that must contain these clauses and information:
      • 1. The central objectives of your society for which it got established.
      • 2. All details of members forming the society
      • 3. The address of the registered office of your society.
  • Also, prepare an Articles of Association containing the following information:
      • i. The rules and regulations which will govern and maintain of day to day activities of the proposed society.
      • ii. Moreover, it will contain the rules for taking the Membership of the Co-operative society.
      • iii. The details about the meetings that will be held in future.
      • iv. Information about the Auditors
      • v. Forms of Arbitration in case of disputes between the society’s members.
      • vi. Ways for the dissolution of the society
      • Cover Letter which clearly mentions about the objective or the purpose of your society. Ensure that every founding member of the society has signed the cover letter.
      • A copy of the Address Proof, where the registered office of your society will get located along with a NOC from the landlord if any.
      • Give a list of all the members of the governing body with their signatures.
      • The last and most essential document which you need to submit with the application is a declaration by the society’s president. He must confirm that he is willing and competent to hold the stated position.
  • Other Support and Services
      • Observations of the provisions of the Act and Rules
      • Adherence to Co-operative principles
      • Verification of Members Register and examination of their pass books
      • Examination of overdue debts
      • Certification of Bad debts
      • Overdue interest
      • Valuation of Assets and Liabilities
      • Special Report to the Registrar
      • Discussion of draft audit report with managing committee
      • Audit classification of society


  • The societies related to the promotion of charity,education science,literature or Fine arts,promotion of sports,the instruction and diffusion of knowledge relating to commerce or industry or anyother useful knowledge ,diffusion of political education ,maintenance of libraries, the promotion of conservation and proper use of natural resources may be registered under the Karnataka Societies Registration Act,1960.
  • As per section 2 (e) of the Societies Registration Act, 1960 the powers of implementation of the Act has been delegated to District Registrars of Co-operative Societies as per Government Notification no. sae/01/sasamno2016 dated:09-06-2016 and with reference to Bengaluru city districts the powers are delegated vide Government order no. sae/01/sasamno2016 dated:15-06-2016

Under this Act the societies for the following purpose may be registered.

  • Promotion of charity, Education, Science, Literature or fine arts.
  • Promotion of sports
  • The instruction and diffusion of knowledge relating to commerce or industry or any other useful knowledge.
  • Diffusion of political education.
  • Maintenance of libraries.
  • Promotion of conservation and proper use of natural resources.

Mode of forming a society.

  • Any seven or more persons, above the age of 18 years associated for any of the purpose specified above.

Documents to be submitted.

  • Information in Form A.
  • Memorandum of Association and Rules and regulations duly attested by one of the subscribers to the memorandum authorized by proposed society.
  • List of subscribers to the Memorandum of Association along with photographs and signature
  • Proceedings of the first meeting to form a society
  • Challan for having paid the prescribed fee.
  • Affidavit in the prescribed form in Rs.20/- E-Stamp paper duly notarized
  • Copy of Address proof and identification proof.(Any one of the following)
      • 1.Adhaar Card .
      • 2.Voters ID
      • 3.Driving License
  • Address proof of society proposed to be registered.
      • 1. Rental Agreement
      • 2.Tax payment receipt with NOC.

Procedures for Registration of a Society under this Act

  • Citizens who intended to form societies for purposes mentioned above have to go through the following process.
  • Any seven or more persons, above the age of eighteen yeas associated for any purpose specified in Section 3 may by subscribing their names to a memorandum of association and otherwise complying with the requirements of this Act and the rules made there under, in respect of registration, form themselves into a society under this Act.
  • The memorandum of association of every society shall state
      • a)The name of society.
      • b)The objects of the society
      • c)The names, addresses and occupations of the members of the governing body to whom, by the rules of the society, the management of its affairs is entrusted.
      • d)The place at which the Registered Office of the society is to be situate.
  • There shall be registered with the memorandum of association, the rules and regulation of the society, which shall contain provisions relating to admission of members, general meetings, voting by members, proceedings at such meetings etc.
  • The memorandum and rules and regulations of the society shall be printed or typewritten, be divided into paragraphs numbered consecutively and be signed by each subscriber to the memorandum of association in the presence of at least one witness who shall attest the signature and shall likewise add his address, description and occupation
  • Form of application for the registration of society shall be as per Schedule A of rule 3 of the Karnataka Societies Registration Rules 1961 to be submitted to the Deputy Registrar of Co-operative societies and District Registrar of societies of concerned districts by one of the subscribers to the Memorandum of association authorized by proposed society with the following documents
      • a)Request letter to District Registrar.
      • b)Form of application as per Schedule A.
      • c)Memorandum of association and Rules and regulation duly attested by one of the subscribers to the Memorandum authorized by proposed society.
      • d)List of subscribers to the Memorandum of association along with photographs and signature.
      • e)Proceedings of the first meetings to form a society.
      • f)Challan for having paid the prescribed fee.
      • g)Affidavit in the prescribed form in Rs.20/- e-stamp paper duly notarized.
      • h)Identity card and address proof of subscribers to the Memorandum of association.
      • i) Address proof of societ y proposed to be registered.
  • After scrutinization and verification if the Deputy Registrar of Co-operative societies and District Registrar of societies is satisfied that all the requirements of this Act and the rules made there under have been complied with, he shall register the memorandum of association and rules and regulation, and shall certify under his hand that the society is registered and issue a Certificate of Registration.

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