Credit Cooperative Society Registration Process in Maharashtra

Embracing the agenda of 'united we stand, divided we fall', Credit Cooperative Society is an independent group of people that voluntarily works together to procure their common social, economic, and cultural objectives. The existence of a Cooperative Society in today's world also reflects that humanity isn't dead. It showcases the willingness of people to help each other while maintaining a balance between principles of social responsibility and mutual benefit. Such a society benefits its members, and the earned profits are efficiently utilized for the long term. As per the Cooperative Societies Act, 1912 if a group wishes to run an organization like this, then it's mandatory for them to go for cooperative society registration.

Benefits of Credit Cooperative Society Registration

The Credit Cooperative Society has played a significant role in promoting the economic welfare and self-sufficiency among the rural areas and the weaker sections of our society. Unlike banks and other financial institutions that solely strive to earn more profits, Cooperative Societies has a different motive. They keep a balance of business durability along with the principle of helping the members to procure financial stability. As welfare remains the primary motto of Cooperative organizations, therefore if you opt Cooperative Society Registration then, you are contributing to uplift the economically weaker sections of India.

Key Features of a Cooperative Society

These are the fundamental characteristics of a Cooperative Society:

Open Membership- Cooperative Society entirely runs voluntarily, so its formation depends on the people who have a common interest and are open for a joint venture. A minimum of 10 members is required for Cooperative Society registration, whereas, the Cooperative Societies Act does not specify the limit of a maximum number of members. Besides, the members have a choice to determine the maximum number of members after the Society gets formed.

Democratic Management- The activities of every Cooperative Society is regulated by a "Board of Directors". The Board of Directors is the elected representatives of the Society. Every member has a single vote irrespective of the number of shares held by them.

State Control- Cooperative Societies falls under state control through registration to protect the interest of members. Society has to submit the member's details during registration. These Societies has to maintain books of accounts which the Government auditors examine from time to time.

Sources of Finance- The source of capital in a Cooperative Society is a combined contribution from all the members. Whereas, these organization can easily rise loans and secure grants from the Government after its registration.

Separate Legal Entity- After Credit Cooperative Society registered under the Cooperative Societies Act, 1912 these organizations becomes a separate legal entity enabling limited liability to its members. Henceforth, death, lunacy, or insolvency of any member will not affect the existence of the Society. It also gives the authority to its members to enter in an agreement with each other for purchasing or selling properties under their name.

Process of Credit Cooperative Society Registration in Maharashtra

Here is the step by step process to follow for Cooperative Society registration:

• The first step is to collect a minimum of ten individuals who wish to work together and form a Society.
• Then, form a Provisional Committee and elect a chief Promoter amongst them.
• Select a name for your Cooperative Society.
• After that, you need to apply an application for reservation of the name to Registration Authority. Obtain a letter that confirms the reservation of name. Once the name gets reserved, it becomes valid for 3 months.
• Collect the share capital and entrance fees from the prospective members.
• Later to collecting the funds, open a bank account in the name of your Cooperative Society and deposit those funds in that bank. Moreover, acquire a certificate from the bank in that respect.
• The Cooperative Society registration fees have to be deposited the RBI and thereof obtain a receipt of 1 challan.
• Submit the application for registration of Cooperative Society to the registrar of Societies of the concerned municipal ward.
• Now submit all the necessary documents for registration such as a list of the promoter members, Bank Certificate, Working plan of the Society, Form No. A in quadruplicate signed by 90% of the promoter members, proof of payment of registration charges, and other documents including affidavits, indemnity bonds etc.
• Thereby, the registrar will make entry particulars into the register maintained in the Form. B. Provide a serial number and issue a receipt in acknowledgement.
• Once all the steps are taken properly, then the registrar will notify Credit Cooperative Society registration in the Official Gazette and finally issue the certificate to the newly formed Cooperative Society.

Conclusion

If you want professional help in Credit Cooperative Society registration, then look no further than Swarit Advisors. We have experienced lawyers and Chartered Accountants to guide you in the process of registration. Our exclusive package include everything from mode of admitting new members to easing the procedure of name reservation.