How to form a Multi-State Co-operative Society in India?

multistate cooperative societyThe Multi-State Cooperative Societies Act, 2002 which substitutes the earlier statute of 1984, facilitates the incorporation of cooperative societies whose objects and functions spread over to several states. The Act provides for formation of both primary (with both individual and institutional members) and federal cooperatives (with only institutional membership). Any application for the registration of a multi-state cooperative society, of which all the members are individuals, should be signed by at least fifty persons from each of the states concerned. In the case of a society of which the members are cooperative societies, it should be signed by duly authorized representations of at least five such societies registered in different states (Sec.6). Their main objects shall be serving the interests of members in more than one state and their by-laws shall provide for social and economic betterment of their members through self-help and mutual aid in accordance with co-operative principles (Sec. 7). Otherwise, they are ineligible for registration. A multi-state co-operative society is a body corporate with limited liability (Sec.9).

In order to ensure financial discipline, extensive provisions have been enacted. No part of the fund other than net profit shall be distributed among members (Sec.62). Investment of society’s fund only in recognized securities is permissible (Sec.64). Contribution to political parties or loans to non-members or borrowing from external sources are prohibited. Annual auditing by recognized auditors is mandatory (Sec.65). Central Government may direct for special audit if it is of the opinion that the society’s affairs are not being managed in accordance with the co-operative principles or prudent commercial practices (Sec.77).

 

Documents required for a Multi State Co-operative Society

  • four copies of the proposed Bye-laws.of the Multistate cooperative society.,duly signed by each of the persons who sign the application.
  • Name of the proposed multi-state cooperative society.
  • Head Quarters and address to be registered.
  • a list of persons who have contributed to the share capital, together with the amount contributed by each of them, and the admission fee paid by them.
  • Area of operation.
  • Main objectives
  • a certificate from the Bank or banks stating the credit balance in favour of the proposed multistate cooperative society.
  • a scheme showing the details explaining how the working of the multi-State co-operative society will be economically sound and the registration of such multi-State co-operative society will be beneficial for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles.
  • certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Central Registrar may address correspondence under the rules before registration and dispatch or hand over registration documents.

 

To form a Multi-State Co-operative Society in India just fill this form:

What are the Popular Non Government Organisation (NGO) Entities in India?

If you are thinking for starting a new Non Government Organisation (NGO) in India then first you have to know, what is an NGO? and which popular NGO entity is best for your goal which you want to achieve;

 

ngo-entityWhat is an Non Government Organisation (NGO)?

Any organisation working for a social, cultural, economic, educational or religious cause is termed as an NGO or Non Government Organisation. NGOs have made favourable indents to needy sections of Indian society at par with a constantly changing socio-economic climate. NGOs have reached out to all sections of society including women, children, pavement dwellers, unorganised workers, youth, slum-dwellers and landless labourers.

Documents requirements for an NGO
  • Income & Expenditure Statement
  • Receipt & Payments Statement
  • Balance Sheet
  • Auditors Report
  • Activity/Annual Report of The Organisation for the previous year.
  • Budget Estimates for the project for current year
  • Details of Beneficiaries
  • Details Managing Committee
  • Details of Employees on Form
  • Copy of Registration Certificate
  • Memorandum of Association / bye-laws/ Articles.
  • Utilisation Certificate in respect of grants released in the previous year
  • List of Assets acquired wholly or substantially out of government grants under GFR 19

An NGO can also be formed under various legal identities:

(i)  Society registered under Societies Registration Act, 1860.

(ii)  Trust (Formed under the Trust deed and registered with Income Tax Authority.)

(iii) Limited company incorporated under section 25 of the Companies Act, 1956

(iv) Co-operative Society

(v)  Multi-State Co-operative Society

(vi) Trade Unions

(vii) Political Party in India

 

What is Trust?

A Charitable trust or Trust is a legal entity which can be set up by anyone who has decided to commit themselves in principle to setting aside some of their assets or income for Charitable causes. The main obligation is to work within the charitable purposes and the powers set out in the Trust Deed

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What is Society? 

A Society is formed when people come together to do something with some common purpose which is legal and useful for others. A society should generally not get into profit making activities. Societies are governed by the Societies Registration Act 1860.

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What is Sec. 25 Company? 

NON PROFIT COMPANY or Company under sec. 25 – is identical to an ordinary company in all respects except that it is not established for profit and commercial gain.  It is also called a Section 25 Company and is a voluntary association of people, registered under the Indian Companies Act, 1956. It is a company with limited liability that may be formed for “promoting commerce, art, science, religion, charity or any other useful object,” provided that no profits, if any or other income derived through promoting the company’s objects may be distributed in any form to its members.

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The main differences between a trust, a society and a section 25 company

Public Trust

Society

Section 25 Company

Statute/ Legislation Public Trust Act like Bombay Public Trusts Act of 1950 Societies Registration Act of 1860 Companies Act of 1956
Jurisdiction of the Act Concerned State where registered Concerned State where registered Concerned State where registered
Authority Charity Commissioner Registrar of Societies Registrar of Companies
Registration As Trust As society (and by default also as  Trust in Maharashtra & Gujarat) As Section – 25 company
Main Document Trust deed Memorandum of Associations and Rules & Regulations Memorandum and Articles of Association
Stamp Duty Trust deed to be executed on non-judicial stamp paper of prescribed value No stamp paper required for Memorandum of Associations and Rules & Regulations No stamp paper required for Memorandum and Articles of Association
Number of persons needed to register Minimum two trustees; no upper limit Minimum seven; no upper limit Minimum seven; no upper limit
Board of Management Trustees Governing body or council/managing or executive committee Board of Directors/Managing Committee
Mode of succession on board of management Usually by appointment Usually election by members of the general body Usually election by members of the general body

Co-operative Societies:

In India, cooperative societies were regarded as ideal instruments to motivate the people to come together and help themselves in the process of eliminating the unscrupulous middlemen making huge profit at the expense of the society.

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Multi-State Co-operative Societies:

Those co-operative societies, whose objects are not limited to one state and serving the interests of members in more than one state for social and economic betterment of its members are considered Multi State Co-operative Society.

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Trade Unions:

Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions

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Political Party:

Political Party is also a type of an NGO because it has many advantages which a NGO have. If you are thinking to make a new Political Party in India then first you have to know, what is a Political Party?

A political party is a group of citizens who come together to contest elections and hold power in the government. They agree on some policies and programmes for the society with a view to promote the collective good. Since there can be different views on what is good for all, parties try to persuade people why their policies are better than others. They seek to implement these policies by winning popular support through elections.

Three components are needed for a political party:

  • The leaders,
  • The active members and
  • The followers

The Indian political parties are categorized into two main types:

  • National level parties:

National parties are political parties which, participate in different elections all over India.

  • State level parties:

The state level political parties are those, which are recognized in less than four states and they work in the states.

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