What Are The Legal Requirements For Starting A Cooperative Society In India

A cooperative society is a type of organization in which people voluntarily associate to meet their common economic and social needs and aspirations through a jointly-owned and democratically-controlled enterprise. Here are the legal requirements for starting a cooperative society in India:

Legal Requirements

In India, the Cooperative Societies Act, 1912, and respective State Cooperative Societies Acts govern the legal requirements for starting a cooperative society.

The following are the general legal requirements for starting a cooperative society in India:

1. Minimum members: A cooperative society must have a minimum of 10 members. In some states, the number may be higher.
2. Appropriate name: The society’s name must be appropriate and should not be identical to or resemble the name of an existing society.
3. Memorandum of Association: The applicants must draft the Memorandum of Association (MOA), which will include the society’s name, objectives, area of operation, and member details.
4. Bye-laws: The society’s founders must prepare the Bye-laws to govern its internal functioning, management, and decision-making processes.

Registration

1. Registration: Applicants must register it with the Registrar of Cooperative Societies in the respective state. They must submit the application along with the MOA, Bye-laws, and other required documents.
2. Capital: The society must have sufficient capital to carry out its activities. Members can raise the capital through contributions or secure loans from financial institutions.
3. Board of Directors: The society must have a Board of Directors to manage its affairs. The Board is elected by the members of the society and is responsible for decision-making.
4. Annual General Meeting: The society must hold an Annual General Meeting (AGM) every year, where the Board of Directors presents the annual report and accounts of the society.
5. Audit: The accounts of the society must be audited annually by a Chartered Accountant.
6. Filing of returns: The society must file its annual returns with the Registrar of Cooperative Societies and other relevant authorities.

Conclusion

The specific legal requirements for starting a cooperative society may vary from state to state. It is advisable to consult a legal professional or the Registrar of Cooperative Societies in the respective state. This is to understand the legal requirements and procedures for starting a cooperative society in India.