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:
In India, the legal requirements for starting a cooperative society are governed by the Cooperative Societies Act, 1912, and the respective State Cooperative Societies Acts. The following are the general legal requirements for starting a cooperative society in India:
- Minimum members: A cooperative society must have a minimum of 10 members. In some states, the number may be higher.
- Appropriate name: The society’s name must be appropriate and should not be identical to or resemble the name of an existing society.
- Memorandum of Association: The Memorandum of Association (MOA) must be drafted, which will contain the name of the society, its objectives, area of operation, and details of the members.
- Bye-laws: The Bye-laws of the society must be prepared, which will govern its internal functioning, management, and decision-making processes.
- Registration: The society must be registered with the Registrar of Cooperative Societies in the state where it is located. The application must be submitted along with the MOA, Bye-laws, and other necessary documents.
- Capital: The society must have sufficient capital to carry out its activities. The capital can be raised through contributions from members or through loans from financial institutions.
- 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.
- 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.
- Audit: The accounts of the society must be audited annually by a Chartered Accountant.
- Filing of returns: The society must file its annual returns with the Registrar of Cooperative Societies and other relevant authorities.
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 to understand the legal requirements and procedures for starting a cooperative society in India.
