Instafiling

In the field of civil society, the formation of societies for the promotion of literature, science, or the fine arts, or the publication of useful knowledge, the diffusion of political education, or for charitable objects is one of the pillars upon which a healthy democracy is erected. In Punjab, like in the rest of India, the establishment and operation of such societies is governed by law under the colonial Societies Registration Act, 1860. That law, although old, is still the primary legislation that confers a society with its juridical personality, independent of those of its members. This blog post explores the theoretical and procedural aspects of registration of society in Punjab, its necessity, benefits, and procedural complexities of online registration.

What is a Society?

Legally, a “society” is not a mere assembly of persons instead , it is a legally recognized body, a corpus, which comes into being on the date of its registration under the Societies Registration Act, 1860. It is a voluntary association of men and women, usually seven or more, who have united to achieve a common, non-commercial aim. The sine qua non of a society is its promotional or altruistic purpose; it is an organization run on a not-for-profit basis.

The basic documents of a society are its Memorandum of Association and the Rules and Regulations. Memorandum of Association is the charter of the society and contains its name, the place of its registered office, its aims and objects, and names, addresses, and occupations of its governing body members. The Rules and Regulations, by contrast, are the by-laws that deal with the internal governance of the society, such as issues regarding the admission and resignation of members, the formation of the governing body, and the conduct of meetings.

Advantages of  Registration of a Society

While persons are at liberty to associate on an informal level, registration under the Act of 1860 of a society is no procedural formalism; it is a legal necessity for every body that wishes to have a stable and enduring life. Registration confers a nebulous collection of persons the entity of a juristic person, a legal person with rights and obligations. Without registration, there is no legal existence in society and the society cannot, for instance, take possession of property in its name or enter into contracts.

The Government of Punjab, in its initiative to promote transparency and simplify the regulatory environment, has made online filing of applications for the registration of societies mandatory through its Invest Punjab Business First Portal. This shift towards becoming digital-first reflects the state’s efforts to establish a more streamlined and business-friendly ecosystem, even for non-profit organizations.

Registration of a society in Punjab has numerous advantages:

• Legal Recognition and Perpetual Succession: Registration gives the society the status of an independent legal entity. This implies that the society will survive even when there is a change in its membership.
• Capacity to Hold Property: The registered society is able to acquire, hold, and dispose of property in its name.
• Right to Sue and be Sued: A registered society may initiate legal action and can be sued in its own name.
• Greater Credibility and Trust: Registration gives greater credibility to a society in the eyes of the public, government organizations, and prospective donors.
• Funding and Government Schemes: Numerous government schemes and sources of funding are made accessible only to registered societies.
• Tax Relief: Registered societies can take advantage of tax exemptions under the Income Tax Act, 1961, if certain conditions are met.

The Online Registration Process in Punjab

The Government of Punjab has made the process of registering a society online, thereby minimizing hardships and increasing transparency. The online registration process can be easily navigated in the following steps:

1. Create a Login ID: The applicant must first create a login ID on the Invest Punjab Business First Portal (www.pbindustries.gov.in ).
2. Fill the Application Form: After logging in, the applicant needs to fill out the Common Application Form (CAF) with all the required details.
3. Upload Documents: The applicant is required to upload scanned copies of all the necessary documents. These include:
   • Memorandum of Association
   • Copy of Rules and Regulations, certified by at least three members of the governing body 
   • A copy of the proceedings of the general meeting where the registration of the society was resolved, attested by a responsible office bearer 
   • Self-attested photographs, names, addresses, and other details of the members of the governing body
   • Proof of residence for all members of the governing body
   • An undertaking that there is no pending litigation regarding the society

1. Fee Payment: The applicant needs to pay the prescribed registration fee online.
2. Submission and Scrutiny: Once the application is submitted, it is scrutinized by the concerned Dealing Assistant and then forwarded to the Additional Registrar of the district
3. Approval: If the society’s area of operation is within the district, the Additional Registrar approves the application If the area of operation extends beyond the district, the application is forwarded to the Registrar of Societies, Punjab, for final approval
4. Issuance of Certificate: Upon approval, the Registration Certificate is issued online to the applicant.

The online portal also provides a facility for tracking the application status and sending notifications to the applicant at every critical stage through SMS and email.

The online registration process through the Invest Punjab Business First Portal has been established to replace multiple electronic interfaces and minimize physical touchpoints. The mandate for online submission suggests that this is the primary and preferred method for society registration in Punjab. The government’s clear intent is to digitize the process to enhance efficiency and transparency.

Registration Fees

The fee for the registration of a society in Punjab is a nominal ₹500 (Five Hundred Rupees). This reasonable fee makes the process of formalizing a society accessible to a wide range of individuals and organizations.

Conclusion

A society’s registration in Punjab is an important process for any organization that wants to act as a non-profit organization with legal status and credibility. The state’s shift towards an entirely online registration process is a commendable act that streamlines the process and makes it more accessible. By knowing the legal system and adhering to the specified online process, people can efficiently form and operate societies that serve towards the social, cultural, and intellectual uplift of the state.

FAQs

1. What exactly is a ‘society’ under the law? 

A society is a voluntary association of at least seven individuals who come together for a common, non-profit purpose. This can include promoting science, literature, fine arts, or charitable activities. Upon registration under the Societies Registration Act, 1860, it becomes a legal entity, distinct from its members.

2. Why is it crucial to register a society? 

Registration grants the society legal recognition. This allows it to own property, enter into contracts, open a bank account, and sue or be sued in its own name. It also enhances its credibility with government agencies and donors.

3. What is the primary law governing society registration in Punjab? 

The formation and operation of societies in Punjab are governed by the Societies Registration Act, 1860, a central piece of legislation that has been adapted by the state.

4. Is there a minimum number of members required to form a society? 

Yes, a minimum of seven members are required to sign the Memorandum of Association to form a society.

5. Can I register a society through offline methods in Punjab? 

No, the Government of Punjab has mandated that all applications for society registration must be submitted online through the Invest Punjab Business First Portal to increase transparency and efficiency.

6. What is the official online portal for registration? 

The official portal is the Invest Punjab Business First Portal (www.pbindustries.gov.in).

7. What is the government fee for registering a society? 

The registration fee is a nominal ₹500.

8. What are the most critical documents needed for online registration? 

You will need to upload scanned copies of:

• Memorandum of Association
• Rules and Regulations of the society
• Proceedings of the general meeting resolving to register the society
• Self-attested photos and proof of residence for all governing body members

9. How long does the online registration process typically take? 

The government has set specific timelines for each stage of the process to ensure timely disposal. For instance, the scrutiny of the application at the district level is aimed to be completed within 10 days, with the entire process for a new society registration targeted for completion within 30 days.

10. What happens if there is an error or discrepancy in my application? 

If any discrepancy is found, your application will be put on hold, and you will be notified via the portal, SMS, and email. You will have 15 days to rectify the issues and resubmit the required information.

11. How can I track the status of my application? 

You can log in to the Invest Punjab Business First Portal to track the real-time status of your application. The system also sends automatic SMS and email notifications at every key stage of the process.

12. Who is the final approving authority for the registration?

• For societies operating within a single district, the Additional Registrar of that district is the approving authority.
• For societies whose operations extend beyond a single district (i.e., state-level), the application is forwarded to the Registrar of Societies, Punjab, for final approval.