What Is A Co-Operative Registered?
There are different types of business organizations, one such form is of cooperative society. Cooperative societies are formed with the aim of helping their members. This type of business organisation is formed mainly by weaker sections of the society in order to prevent any type of exploitation from the economically stronger sections of the society.
Cooperative societies need to be registered under the Cooperative Societies Act, 1912 in order to function as a legal entity. Members of the society raise the capital within themselves.
Benefits of A Co-Operative Society
- Membership in a co-operative society is completely voluntarily; anyone is free to join or leave anytime and has no bias interest with gender, religion or caste. Membership is open to all.
- Registration of a co-operative society is mandatory. A Co-operative society has a separate legal identity in the society.
- If a member chooses to enter or exit the society, it does not impact the society.
- A co-operative society has limited liability.
- Only an authorised person can take decisions and it works on the basis of election where members vote and than a managing committee is set who runs the co-operative society.
- A co-operative society’s motive should not shift from the welfare and development of the members. If any surplus is generated, it is divided amongst the members as a dividend.
- The products that are sold in the cooperative societies are cheaper than the market.
- Procurement of products is done directly from the producers, which removes the middlemen, thereby generating more profit for the producers and consumers.
- Members of the cooperative society can get quick loans.
- There is no black marketing involved.
Types Of Co-Operatie Society
There 5 types of co-operative societies:
- Producer Co-operative Society
- Consumer Co-operative Society
- Housing Co-operative Society
- Marketing Co-operative Society
- Credit Union
Procedure for registration of Cooperative Society
- For the purpose of registration an application is made to registrar for registration.
- Name of the proposed society is mentioned in the application
- Names along with the KYC documents i.e ID card, telephone number, physical address, occupation and age) of the minimum 10 proposed members is required
- Four copies of application is filed
- Bye laws are prepared and four copies of bye laws are required
- Requisite fees is required to be paid
List of common documents to be submitted by all types of society
- Form A in quadruplicate signed and verifies by 90% of the promoters.
- List of promoters and members.
- Bank certificate.
- Detailed explanation about the activities and action of society.
- Four copies of proposed bye-laws of the society.
- Proof of payment done of registration charges.
- Other documents later asked if needed such as affidavits, indemnity bond, or other affiliated documents asked by the registrar have to be submitted.